Band Protocol’s achievements since launch: project summary and perspectives
In 2019, the Band Protocol platform was launched (based on the Ethereum blockchain), which quickly gained popularity among many crypto projects in the blockchain industry. The initial vector of the project was aimed at the creation of a transparent and unbiased data space governed by a decentralized protocol.
We will describe to you how the Band Protocol project has developed since its launch, what the developers have managed to achieve during that time, and what are the prospects for the project in the future.
How it all began
The main goal of the project from the very beginning was to rid communities of unreliable and inaccurate data, or, in other words, disinformation that users regularly encounter on the Internet.
According to the developers, the main problem with the centralized data provided by curators is bias. Data curators include any users or companies that disseminate information on the Internet: online publishers such as Bloomberg, rating agencies, Reddit or Twitter users, and many others.
Private companies and individuals do not disclose information to the general public, providing it on a paid basis. This closes off access to quality information to the audience. On the other hand, information published on open sources is often unreliable. It can be promoted by sponsors in their own interests.
To solve this problem, the Band Protocol open blockchain platform was developed, which encourages data curators to become interested in providing reliable information.
Band Protocol launched in 2018, but the token was only released in September 2019 based on the Ethereum blockchain. Curators could issue their own tokens using a Bonding Curve smart contract. The protocol is designed in such a way that the value of the token directly depends on the quality of the community that provides the information.
Band Protocol 2019 – 2020 Recap
The project began to develop actively in 2019 when a large number of developers and partners joined the project team, which accelerated progress.
The developers expanded the concept of the protocol, after which the Band Protocol became a decentralized platform providing a Data Oracle network. Blockchain oracles connect external data with smart contracts and serve as a bridge between them. Smart contracts themselves cannot access external data, so they need a relay that will translate the information into a language understandable by smart contracts.
This will allow you to create stand-alone blockchain applications that will automatically process information by accessing data sources through the API. Because of that, blockchains will no longer be isolated from the Internet. Well-known DeFi projects such as Uniswap or Aave are now working on the basis of oracles.
In the first half of 2019, the developers focused on the aspects such as security and scalability of the platform, creating an open standard for processing and managing data on the blockchain.
New horizons and partnerships
In the summer of 2019, one of the leading outsourcing companies, Certik, conducted a platform security audit, as a result of which no critical errors were identified in the blockchain network. In September 2019, BAND tokens were listed on the crypto exchange Binance, which is the leader in its space, after the main network was launched.
During the same period, the Band Protocol team began collaborating with leading data providers for blockchain platforms:
- Woodstock Fund.
In addition to the listed companies, partnerships with Band Protocol have entered into with Ethereum, Elrond, Wanchain, and Tomochain. Such companies as Constant, Troy, Portal Network, and 2Key, who needed reliable Data Oracles for safe operations, used the product.
By the end of 2019, the team had begun implementing BAND 2.0, its own Band Chain protocol and a new decentralized data delivery network (D3N).
Band Protocol 2.0 Launch
In June 2020, Band Protocol migrated to the Cosmos Network and launched the long-awaited Band 2.0, which already used Cosmos Inter Blockchain Communication (IBC) with 100% interoperability. We covered IBC briefly in our Cosmos Stargate update roundup.
More information about Inter Blockchain Communication can be found in this article.
However, the IBC protocol was still in development and due to unstable performance, the Band Protocol team decided to postpone the integration until stability was achieved.
A fully decentralized network of data oracles was launched in October 2020 (Phase 1), after which validators could stake tokens and receive rewards. The infrastructure of the updated network consisted of four testnets, the Proof-of-Authority Network and CosmoScan, which became the official blockchain observer for the Band Chain network. In December 2020, the number of data requests increased to 450 thousand, exceeding the same figure for the previous month by 450%.
By the end of 2020, the platform has integrated with over 50 decentralized projects. The number of price data providers has also grown significantly, including large crypto exchanges and monitoring services such as Binance, Coinbase, Huobi Global, Kraken, Bitfinex, CryptoCompare, and others. This improves the accuracy and reliability of the data provided to DeFi platforms.
The number of partners has also grown. Famous projects such as Secret Network, Polkadot, Linear, and others have joined Band Protocol.
Band Protocol was the first blockchain platform to join the revolutionary OpenAPI Internet Initiative (OAS) alongside giants such as Google, IBM and Microsoft. This will help improve how smart contracts interact with traditional centralized technologies and APIs.
Band Protocol’s Latest Updates
In February, the team announced that BandChain would cease Proof-of-Authority (PoA) operations and move to the mainnet along with blockchain oracles. The transition to the mainnet and the shutdown of the outdated network took place on March 2, 2021.
Mainnet employs over 72 reliable validators that provide high network security and improved decentralization. Thanks to validators, the network operates with 100% uptime. Everstake is one of the validators Band Protocol works with. Everstake is a trusted staking provider run by a team with years of experience in cybersecurity and blockchain.
The Everstake team actively supports leading staking platforms as a validator, allowing delegators to safely stake their tokens. You can support Everstake by voting for our validators. You can find a list of supported platforms on our website.
See also our guides on staking BAND:
Summary and Outlook
As of April 1st, the number of data requests reached 3 million, which has doubled in the last 40 days. This perfectly illustrates how rapidly the platform is growing along with the demand for its data provided by decentralized oracles.
The Band Protocol team has completed large-scale achievements far as the development of the network is concerned and is not going to stop there. Major updates are planned for 2021, one of which will be the complete transition of the blockchain to self-service. Developers will prepare detailed documentation that allows corporate data providers to independently configure and automate the exchange of external data with smart contracts.
It is also planned to expand the infrastructure for Layer-1 and Layer-2 and add new validators to increase the resiliency of the ecosystem. This, in addition, will allow processing a larger data stream, which is constantly growing.
After the Stargate update, BandChain developers began working together on protocol compatibility with Cosmos IBC to make it easier to integrate the network with other blockchains.
In the second half of 2021, Phase 2 will be launched, which will allow data oracles to receive payments for providing data to decentralized platforms in order to stimulate their work. The Band developers are already testing the new feature with some data providers.
Another useful feature introduced will be the Verifiable Random Function (VRF), which plays an important role in the development of NFT (Non-Fungible Tokens) and blockchain games.
Band Protocol continues growing actively and updates the list of the partnerships.
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