What is Band Protocol (BAND)?

Band Protocol is a decentralized oracle platform that plays a crucial role in connecting blockchain smart contracts with off-chain data. It facilitates access to a variety of data, including real-world information like sports scores, stock prices, and other internet sources, to decentralized applications (dApps) on blockchains such as Ethereum and Cosmos. Launched initially on Ethereum, Band Protocol later transitioned to the Cosmos network, enhancing its features and simplifying its structure. Furthermore, the transition was driven by the need for faster transaction speeds and lower costs, which are essential for real-time data applications.

Band Protocol was developed in 2017 by Soravis Srinawakoon, Sorawit Suriyakarn, and Paul Nattapatsiri with an aim to bridge the gap between blockchain smart contracts and off-chain data, allowing decentralized applications (dApps) on various blockchains, including Ethereum and Cosmos, to access a wide range of external data.

Band Protocol is noteworthy for its broad compatibility with different blockchains, offering a key piece of infrastructure for dApps developed outside of Ethereum. This adaptability makes Band Protocol a versatile tool in the field of decentralized finance (DeFi) and beyond. Band Protocol has partnered with Terra and Mirror Protocol, expanding its reach in the decentralized finance (DeFi) sector. These collaborations are pivotal in Band Protocol's aim to provide decentralized oracle solutions across various blockchain ecosystems, enhancing its role in the DeFi and broader blockchain space​.

The platform operates using a Delegated Proof of Stake (DPoS) consensus mechanism, which involves validators that play a crucial role in maintaining the integrity and security of the network. These validators are responsible for processing data requests and ensuring the accuracy and reliability of the data provided to smart contracts. 

How does Band Protocol (BAND) work?

Band Protocol operates by serving as a bridge between dApps' smart contracts on a blockchain and real-world data sources located outside of the blockchain. This is crucial because many dApps need up-to-date, accurate external data to function properly. Band Protocol uses its own blockchain, known as BandChain, to process these data requests. The data validation process involves a decentralized network of validators who create blocks to validate these transactions. The BandChain is based on the Cosmos SDK and uses Tendermint’s Byzantine Fault Tolerant consensus mechanism, enabling quick response times and cross-chain data transfers.

What makes Band Protocol (BAND) unique?

Band Protocol's cross-chain compatibility is a major aspect of its uniqueness in the blockchain space, allowing it to function across multiple networks. Such cross-chain functionality is crucial in today's diverse and evolving blockchain landscape, where dApps and their underlying smart contracts might be built on different blockchains for reasons such as transaction speed, cost, or network congestion.

By being part of the OpenAPI Initiative, Band Protocol aligns itself with significant tech companies like Google and Microsoft. The OpenAPI Initiative is an industry-wide effort to standardize how APIs are described, making it easier for systems to interact with each other. Band Protocol’s involvement in this initiative indicates its commitment to playing a significant role in shaping how blockchain oracles interface with traditional web technologies. This is particularly important for ensuring that the data oracles like Band Protocol fetch from external sources is reliable, consistent, and easily integrated into blockchain ecosystems.

These partnerships and initiatives underscore Band Protocol's approach to providing comprehensive oracle solutions. They are working towards creating a more interconnected and efficient blockchain environment, where data from the real world can be seamlessly integrated into blockchain networks. This is not only crucial for the current state of blockchain and DeFi but also for the future scalability and adoption of these technologies.

The BAND token: Utility & tokenomics

The BAND token's role in the Band Protocol ecosystem extends beyond its primary functions of transaction payments, governance, and validator rewards. As a crucial component of the network's Delegated Proof of Stake (DPoS) consensus mechanism, BAND tokens are staked by validators who propose and validate blocks on the network, ensuring its security and functionality.

The inflationary supply model of BAND tokens serves as an incentive for token holders to actively participate in network activities, such as staking. This model helps maintain the network's security and encourages a decentralized validation process. As validators and delegators stake their tokens, they earn rewards, contributing to the overall health and security of the Band Protocol network.

The ICO (Initial Coin Offering) of Band Protocol in 2019 was a significant milestone, with the project raising over $5 million. This funding has been instrumental in the development and growth of the Band Protocol ecosystem. The total supply of BAND tokens was capped at 100 million at the time of the ICO, ensuring a finite supply in line with standard cryptographic principles.

As of February 2024, the circulating supply of BAND tokens is reported to be 138,476,186. This figure may include tokens distributed for ecosystem development, the team, advisors, and the Band Protocol Foundation. The discrepancy between this circulating supply and the total supply cap could be due to several factors, such as additional token releases, vesting schedules for team and advisors, or tokens locked in smart contracts for specific purposes within the ecosystem.

The tokenomics of BAND are designed to balance various aspects such as network participation, reward distribution, and long-term viability, making it a critical component in the Band Protocol's mission to provide reliable and decentralized oracle services to the blockchain world.

How to buy Band Protocol (BAND)?

You can simply buy and sell BAND on the Coinmetro exchange in just a few seconds. Sign up for an account, if you are not already registered, deposit funds instantly and buy BAND and 80+ other crypto assets with just a few clicks. 

Buy BAND

Join the Coinmetro community on Discord and Telegram, where forward-thinking traders and investors gather to share insights, explore new opportunities, and dive deep into the world of cryptocurrencies. Should you need any help, feel free to reach out to our world-class Customer Support Team via 24/7 live chat or email at hello@coinmetro.com. 

To become a Coinmetro user today,  Sign Up now, or head to our new Exchange if you are already registered and experience our premium trading platform.