- Some distributed applications hold the promise of a very bright decentralized future in fintech, along with other application spaces.
- People need to make sure that dApps develop with blockchain-based smart contracts and suffer from a technical impediment that could prevent this dream from becoming reality.
Now, it is very important to note that Oracles transcend the limitations of smart contracts so different blockchain-based dApps can always achieve their potential. Some people are interested in Band Protocol, which is associated with BAND tokens. This content piece will very deeply explain the technology and help prepare them to invest in the particular project via the internet’s fastest and friendliest crypto marketplace.
Understand The Concept Of Band Protocol (BAND)
So, some smart contracts as currently conceived suffer from a crippling limitation that can also prevent them from serving as the foundation of truly useful dApps.
If there is someone who is writing a dApp that always allows users to execute trades automatically when certain conditions are met, the problem is that a particular dApp runs on the blockchain and the price of gold is reported at websites that are not on the blockchain.
People need to make sure that no bridge allows the smart contract to import the price of gold onto the blockchain. Also, Band Protocol is one of a handful of blockchain oracle platforms that address this problem. Oracles serve as bridges that allow blockchain-based smart contracts to access reliable, validated digital data outside the blockchain.
BAND is the Band Protocol project’s utility and governance token. Some validators earn their position by owning a minimum threshold of BANK tokens or having the validation rights delegated to them by other BAND holders.
Study The Working Of Band Protocol
So, new data sources typically become available when a data provider uses a public API to request the publication of its data on BandChain. Also, all the providers should make sure that they pay to have their data published on BankChain.
Band Protocol uses sophisticated calculations to determine how much to charge data providers just to be present on the BandChain and how much to charge developers and users for access to the data.
A network of validators on BandChain was established by the Band Protocol. All these validators use a blockchain-based consensus mechanism just to establish the validity and reliability of data sources.
Later, when the data is present on the BandChain, it can be accessed by smart contracts on Ethereum, Cosmos, and other blockchains. People need to make sure that BANK is the currency data provider and that consumers always pay for Band Protocol’s services. It is also used to compensate validators for their work and to pay data providers.
Band Protocol is the one that was launched by three founders in Thailand. Also, before launching Band Protocol, CEO Soravis Srinawakoon held positions at Boston Consulting Group.
Conclusion
Last but not least, BAND is a utility token that would ordinarily be of very little interest to all investors. Also, the BAND protocol team has deliberately tried to quash that particular interest by enacting a phased inflation mechanism.
Nowadays, there is a growing number of investors who are finding BAND a good source of passive income. Moreover, when BAND holdings are delegated to a Band Protocol validator, some micropayments accrue with every transaction.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.