When Band Protocol appeared and why it became popular?
The Band Protocol cryptocurrency is very young, it was introduced in late 2019. It is a descendant of the Cosmos cryptocurrency, where the ability to link data sources and decentralized applications (DeFi) using secure crypto nodes comes to the forefront. The main competitor of Band Protocol is Chainlink, whose public nodes also interact with data sources. However, Band Protocol is compatible with other cryptocurrencies nodes such as Waves, TRON (TRX), and ICON. Also, Band Protocol has a better decentralization public node than Chainlink. As in the network Cosmos, Band Protocol uses the Proof of Stake protocol to confirm transactions between crypto nodes. Modification of the dPoS (delegated Proof of Stake) protocol provides data integrity in the blockchain.
What are the Band Protocol applications for DeFi?
Decentralized applications (DeFi) based on Band Protocol have high speed and scalability. Free nodes of Band Protocol receive data from external sources by adding a few lines of code to the program interface. Such data can be, for example, real-world events, sports, weather, random numbers, and more. Each crypto node checks information obtained from external sources relying on several independent confirmations. Providers of information are rewarded in BAND tokens. The bandwidth of the Band Protocol network allows processing over 1000 transactions per second.
How Band Protocol nodes work?
Band Protocol nodes that use the Proof of Stake protocol to maintain network integrity are called validators. Validators on the BandChain are tasked with generating new blocks and processing transactions. Validators can set their own nodes for the data they are providing. Not every BAND node can become a validator and be rewarded for checking transactions. As with Cosmos, a validator node needs to have a large amount in BAND tokens as a deposit on its special wallet. Therefore, ordinary users lease their BAND tokens to full BAND nodes, receiving in exchange a proportional part of the reward of the full blockchain nodes provider. The mechanism of secure leasing of BAND tokens is built into the Band Protocol code. It is not technically possible for Validators to transfer user BAND tokens to another wallet. The Band Protocol cryptocurrency algorithm will penalize dishonest BAND nodes of validators. At any moment the user can cancel the lease of his tokens to the validator BAND node. However, it will take some time before the user can get back his tokens in the complete size.
What are the technical features of Band Protocol?
Band Protocol has a modular system. The software for Bandchain free nodes, IBC Bridges, and Oracle Scripts is distributed separately. Developers of smart contracts and applications based on the blockchain can write Data Oracle Script on any modern programming language. There is an API for interaction between data providers and blockchain-based applications.
What are the tokens in the network Band Protocol?
BAND tokens are used for payments between network members. BAND tokens are also used when voting for further development of the Band Protocol project. Also, Dataset tokens are used in system tokens, they are necessary for interaction with data sources. BAND tokens can be converted to Dataset tokens at any time, as well as the reverse conversion from Dataset to BAND. This does not require the use of exchange services, and the token conversion operations are performed directly from the wallet program. In total, 100 million BAND tokens are circulating between the free nodes of the Band Protocol. All of them were created simultaneously at the start of the project.
