Band Protocol

Band Protocol was founded in 2017 by three MIT graduates: Soravis Srinawakoon, Paul Nattapatsiri, and Sorawit Suriyakarn. Initially, the project focused on providing accurate and reliable information to online blockchain communities. However, it shifted its focus to become a decentralized oracle for all blockchain applications, aiming to provide real-world data to smart contracts and decentralized applications (dApps) across multiple blockchains.

The project raised a private seed round of $3 million led by Sequoia India in February 2019. This was followed by a private sale of BAND tokens from July to August 2019, raising a total of $2 million at $0.40 per token. The project launched on Binance Launchpad, trading at $0.435, priced in Binance’s native token, BNB.

Band Protocol initially released on the Ethereum blockchain in 2017 but later transitioned to its own blockchain, BandChain, built using the Cosmos SDK, in 2020. This move allowed for faster and less expensive transactions compared to other blockchain oracles.

The BandChain mainnet network Phase 0 (Wenchang) launched in June 2019, and Phase 1 (Guan Yu) launched in July 2019. The protocol uses a delegated proof-of-stake (dPoS) consensus mechanism to ensure data integrity and relies on a network of validators to pass data onto blockchains.

Band Protocol has experienced rapid growth since its transition to BandChain, with its token, BAND, becoming one of the best-performing cryptocurrencies in 2020, witnessing a sharp 6000% increase in price from its seed round price of $0.30.

Band Protocol (BAND) is a decentralized data oracle platform designed to bridge the gap between real-world data and blockchain-based applications. Here's a detailed overview of how it works:

1. BandChain: A public blockchain built using the Cosmos SDK, which provides interoperability with various blockchain networks. This allows Band Protocol to service projects across different blockchains, including Ethereum, Fantom, and Avalanche.

2. Validators and Delegators: The network relies on validators and delegators who stake the native BAND token to participate in the consensus mechanism. Validators are responsible for retrieving and aggregating data, while delegators support validators by staking their tokens.

3. Data Requests: Decentralized applications (dApps) and smart contracts request data through customizable oracle scripts. These scripts specify the data source, the number of validators required, and the methodology for aggregating the data.

1. Request Receipt: A randomized set of validators receives the data request and responds by pulling data from the specified source.

2. Data Aggregation: The data reports from different validators are aggregated according to the customized oracle script.

3. Data Storage and Proof: The final aggregated data is permanently stored on BandChain, and an oracle data proof is produced.

4. Data Transfer: The validated oracle data is transferred to the requesting dApps or blockchains.

Band Protocol uses a Delegated Proof-of-Stake (DPoS) consensus mechanism to secure its oracle network. Validators must stake BAND tokens to ensure data accountability and are rewarded with a share of query fees and block rewards. Token holders can participate as validators or delegators to earn staking rewards and data request fees.

To address security concerns, Band Protocol employs several measures:

• Random Validator Selection: Validators are chosen randomly for each transaction to prevent manipulation.
• Run-Time Security Validation: Scripts that relay information execute only after passing a run-time security validation.
• dApp Security Conditions: dApps can impose their own security conditions on the data they access.

The BAND token is used for several purposes:

• Compensating Validators: Validators are rewarded with BAND tokens for their work.
• Paying Data Providers: Data providers are paid in BAND tokens for making their data available.
• Governance: BAND tokens are used for the protocol's governance mechanism.

Band Protocol aims to achieve speed, scalability, cross-chain compatibility, and data flexibility. It supports various methods of retrieving and aggregating data, making it a versatile solution for dApp developers. The platform's unique features include:

• Interoperability: Band Protocol can service projects across different blockchains.
• Customizable Oracle Scripts: Developers can create custom-made oracles using WebAssembly to connect smart contracts with traditional web APIs.
• Band Standard Dataset: A collection of over 80 data feeds from various sources, allowing for real-time price information and other data oracles.

By providing a reliable and decentralized bridge between real-world data and blockchain applications, Band Protocol enhances the functionality of smart contracts and supports the growth of decentralized finance (DeFi) and Web3 ecosystems.

Band Protocol (BAND) has several strengths that contribute to its success as a decentralized blockchain oracle provider:

1. Cross-Chain Compatibility: Band Protocol is blockchain-agnostic, meaning it can work with various blockchains such as Ethereum, Polkadot, Icon, Tron, Solana, and Cosmos, allowing for seamless data exchange across different blockchain ecosystems.

2. Efficient Data Aggregation: Band Protocol aggregates data from multiple sources, ensuring that the data provided to smart contracts is accurate and reliable. This is particularly useful for DeFi protocols that require real-time data to execute transactions correctly.

3. Decentralized Oracle Network: Band Protocol relies on a network of trusted validators who provide data based on the size and maturity of their stake. This decentralized approach ensures that data is not controlled by a single entity, maintaining the integrity of the data.

4. Cost Savings: Band Protocol's use of the Cosmos SDK allows for low-latency and high-throughput, reducing costs for data-hungry applications. Additionally, the project's ability to work across blockchains enables cost savings by avoiding the need for coin conversions.

5. Security: Band Protocol's consensus mechanism is based on Proof of Stake (PoS), which contributes to the security of its oracle network. Validators must stake BAND tokens, discouraging malicious behavior and ensuring the network runs smoothly.

6. Flexibility: Band Protocol provides multiple methods of retrieving and aggregating data, allowing for flexibility in data sourcing and usage.

7. Native Token (BAND) Utility: The BAND token has multiple use cases, including becoming a validator, staking for rewards, and paying for data services. This utility adds value to the token and incentivizes participation in the network.

These strengths position Band Protocol as a reliable and efficient decentralized oracle provider, making it an attractive solution for DeFi protocols and other applications that require accurate and timely data.

Band Protocol (BAND) carries several risks that investors should be aware of:

1. Oracle Manipulation: One of the primary risks associated with Band Protocol is the possibility of oracle manipulation. This could lead to inaccurate data being supplied to decentralized applications, which could have significant consequences.

2. Slashing Penalties: Validators in the Band Protocol are subject to slashing penalties if they engage in malicious activities such as double signing. This penalty not only affects the validator but also the users who have delegated their BAND tokens to that validator. The penalty can be as high as 5% of the staked tokens.

3. Downtime Risks: Validators who are offline for extended periods can face downtime penalties, which include a 0.01% slashing penalty and being put into "jail" until they prove they are back online and operational. This also affects users who have delegated their tokens to such validators.

4. Risk of Centralization: The Delegated Proof-of-Stake consensus mechanism used by Band Protocol can lead to centralization if a few validators control a significant portion of the network. This could compromise the security and decentralization of the network.

5. Market Risks: Band Protocol is a relatively small cap project, which means it is more susceptible to market fluctuations and volatility. This can result in significant price swings, making it a higher-risk investment.

6. Competition: Band Protocol operates in a competitive space, primarily competing with Chainlink. This competition can impact its market share and adoption, potentially affecting its price and overall success.

7. Regulatory Risks: As with any cryptocurrency, Band Protocol is subject to regulatory risks. Changes in regulations or laws governing cryptocurrencies could negatively impact the project's operations and value.

8. Investment Risks: Investing in Band Protocol, like any cryptocurrency, carries inherent risks. Investors may lose all or part of their investment, making it essential to carefully assess the risks and invest according to their risk profile.

These risks highlight the importance of thorough research and due diligence before investing in Band Protocol or any other cryptocurrency.

• Soravis Srinawakoon: CEO and Co-founder, holds a bachelor's degree in computer science and a master's in management science and engineering from Stanford University. He worked at Boston Consulting Group before launching Band Protocol.
• Sorawit Suriyakarn: Chief Technical Officer (CTO) and Co-founder, holds bachelor's and master's degrees in electrical engineering and computer science from MIT. He worked at Hudson River Trading, Quora, and Dropbox before joining Band Protocol.
• Paul Nattapatsiri: Chief Product Officer, created crypto-based games that attracted over 800,000 users since 2013. He worked at TripAdvisor and Turfmapp before joining Band Protocol.
• Bun Uthaitirat: Team member.
• Kanisorn Thongprapaisaeng: Team member.
• Prin Rangsiruji: Team member.