Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
The smart contract is one of the breakthroughs in blockchain technology. However, without secure access to reliable external data, their use is limited. Band Protocol is an open, decentralized cross-chain data oracle that provides curated, time-sensitive data to smart contracts through a network of oracles.
Band Protocol is one of the best performers of the cryptocurrency ecosystem in 2020. It started the year trading at around $0.2, and it skyrocketed to almost $18 in August, establishing the highest record in its 3-year history. At the moment, it is trading at half of its ATH, but it remains one of the most promising blockchain protocols on the market.
If you want to know how Band Protocol works, how to buy it, and where to store it, then this beginner’s guide to Band Protocol should answer all your questions.
Band Protocol in a Nutshell
- Band Protocol is a permissionless blockchain protocol for token-curated communities.
- Band Protocol ensures secure data transfer between the blockchain and real-world data providers.
- Band Protocol was launched in 2017
- Band Protocol is based in Ban Khlong Tan, Samut Sakhon, Thailand.
- Band Protocol is also known as BandChain and Band Oracle.
- Band Protocol is a reliable solution for DeFi protocols and prediction markets.
- Band Protocol has a native token called BAND.
- BAND is available to buy on most of the major crypto exchanges
- Band Protocol can be stored in Ethereum-compatible wallets.
What is Band Protocol?
Also referred to as BandChain and Band Oracle, this platform allows for developing smart contract applications like DeFi and prediction markets. It also works as a data governance framework to create and execute Web 3.0 applications securely and scalably.
Contrary to centralized oracles, Band Protocol does not rely on a single node for data input. Instead, it enables developers to produce bespoke oracle requests on BandChain – a decentralized oracle network of validators secured through Delegated-Proof-of-Stake (DPoS).
Band Protocol emerged as a solution to the problems that blockchains have in accessing secure data from external sources.
Thanks to Band Protocol, more companies can adopt blockchain technology and operate on decentralized networks. The Band platform ensures a reliable bridge for secure data transfer from the outside world to the chain and back.
What is BAND?
BAND is the native token of the Band Protocol blockchain. It can prevent economic manipulation on the chain and incentivize the network users to work together and contribute to the data sourcing process.
At the time of this writing, the BAND token was trading at $8.66 per unit, and it had a market cap of $177,523,333. It also had a circulating supply of 20,494,033 BAND out of the 100,000,000 BAND available.
A Brief History of Band Protocol
Band Protocol was created in 2017 by three young developers and some of the most promising young figures in the cryptocurrency industry:
- Paul Nattapatsiri – A creator of crypto games with 800,000+ users since 2013
- Soravis Srinawakoon – A Stanford University graduate and one of the Forbes’30 under 30 in 2019
- Sorawit Suriyakarn – An MIT graduate with solid experience in trading and crypto economy
According to the company’s whitepaper, Band Protocol is a blockchain-agnostic protocol that “ensures interoperability between smart contracts and the rest of the world.”
The launch of Band Protocol occurred through three funding rounds:
- An Initial Coin Offering (ICO) ran between August and October 2018 and raised $3 million. During the ICO, there was 10 million BAND sold privately for $0.3 per unit.
- A second Initial Coin Offering (ICO) ran between June and August 2019 and raised $2 million. During the ICO, there was 5 million BAND sold privately for $0.4 per unit.
- An Initial Exchange Offering (IEO) was conducted by Binance Launchpad, which took place on September 16th, 2019. The event raised $5,850,000 after selling 12,368,200 BAND publicly for an average of $0.473 per unit.
Only about 20% of the BAND tokens have been released in circulation at this writing time. According to the Band Protocol roadmap, 51% of the entire amount of BAND tokens will be released by 2024.
Today, Band Protocol is rapidly emerging as one of the most stable platforms for DeFi and other applications built on the Ethereum blockchain. According to their website, Band Protocol enjoys the support of prestigious names in the cryptocurrency industry, including Binance, Sequoia Capital, Spartan Group, and others.
How does Band Protocol work?
Band Protocol works as a layer-2 protocol of oracles that connect on-chain applications with external data providers.
The DApp on the blockchain chooses Band Protocol to access data available online from trusted sources on Web 2.0 and 3.0.
Band Protocol enforces a multi-token model and staking mechanism to ensure that the information reaching the DApps is accurate and free from manipulation.
On the other hand, the developers that use Band Protocol can build a broad range of DApps on the chain while relying on valid, secure financial data from off-chain sources.
Band Protocol drastically reduces the risk of fake or manipulated information reaching the blockchain. More so, it links the on-chain applications with off-chain data providers cheaper, quicker, and safer than most intermediaries out there. The protocol paves the way for big businesses and investors to enter the crypto and DeFi markets, accelerating blockchain mass adoption.
Where to Buy & Store Band Protocol
Band Protocol is today available to buy from a wide range of crypto exchanges that include:
- Binance | Coinbase |Coinsbit
Because it is an ERC-20 token, you can store Band Protocol in any Ethereum-compatible wallet, such as:
- MyEtherWallet | Ledger Nano S | BRD Wallet
The Benefits of Investing in Band Protocol
- Band Protocol will make it easier for prediction markets to implement and use blockchain technology, thus ushering in a new financial era.
- The DeFi market will also benefit from safer sources of external data thanks to the Band Protocol.
- Developers using Band Protocol can build DeFi without worrying that the price feeds they’re using are tampered with or weak.
- Band Protocol will enable the safe communication of various external data types to on-chain DApps, including real-world events, sports results, election polls, weather forecasts, random prices, and more.