The Value Propositions of Band Protocol

Elaborating Smart Contracts Capabilities

Smart contracts offer immutable storage and verifiable transactions. However, without access to real-world data, their full potential remains limited.

Band Protocol ensures that smart contracts and decentralized networks can access data readily available on the traditional web through APIs.

Secure Oracle Solution

Current oracles struggle with decentralization, security, and interoperability. Many remain centralized, vulnerable to failures, costly, and inefficient during network congestion.

Band Protocol provides a decentralized oracle service with a secure crypto-economics design. Besides, it is easy to work with and is cost-effective for developers.

How Does Band Protocol Work?

Band Protocol utilizes the independent, Cosmos SDK-based blockchain, BandChain, to allow users to create customizable oracle scripts that facilitate the transfer of real-world data from off-chain sources to dApps and smart contracts.

A customizable oracle script includes the data, the data source, the data aggregation methodology, and the number of validators required to report the data.

When a developer executes an oracle script, it initiates a flow of activities that can be represented as:

• A dApp makes data requests defined by its customized oracle script.

• A randomized set of validators receive this request and respond by drawing data from the source specified in the script.

• The blockchain aggregates the data reports from the various validators according to the terms defined in the customized oracle scripts.

• BandChain stores the final aggregated data and produces an oracle data proof.

• The protocol conveys the validated oracle data to the blockchain or dApp that made the request.

The protocol leverages a DPoS consensus mechanism and native token to secure the oracle network. The consensus mechanism relies on the participation of professional and community node operators.

Each operator must stake BAND tokens to dissuade them from engaging in malicious acts.

What Makes Band Protocol Useful?

Blockchain networks are isolated, keeping their data siloed and limiting external interactions. Oracles remove this barrier, enabling smart contracts to access real-world data and expand their use cases.

In this regard, Band Protocol:

• Provides a robust, secure, and performant approach for smart contracts to feed on off-chain information in the hands of community-governed data providers.

• Ensures that off-chain data easily reaches decentralized environments while upholding the integrity of such data through economic means using its native BAND tokens.

Band Protocol Use Cases

Band Protocol's main purpose is to offer a decentralized oracle network that enables smart contracts on blockchains to access real-world data from external sources.

Its especially valuable for applications in decentralized finance (DeFi), gaming, insurance, and supply chain management, where accurate external data is essential for the proper functioning of smart contracts.

To give you concrete examples, here are some real-world use cases where this technology makes a difference.

• DeFi: Provide accurate price feeds for digital assets that users borrow, lend, or trade as derivative contracts.

• Gaming: Generate provably fair random numbers for in-game mechanics like loot boxes and lotteries.

• Insurance: Trigger smart contracts based on real-world events like weather conditions or asset price fluctuations for insurance claims.

• Prediction Markets: Facilitate decentralized prediction markets, allowing users to wager on the outcome of real-world events.

• Supply Chain Management: Track the location and status of goods in a supply chain using real-time data