The band: the decentralized intermediary that connects the blockchain to the real world

In the fast-paced world of DeFi, decentralized applications face a real challenge: how to trust external data in a secure and decentralized manner? This is where the Band protocol (Band) comes in to offer an innovative solution to those challenges.

Why do we need a reliable data intermediary?

Smart contracts and decentralized applications cannot directly access the external data they need—currency prices, weather data, sports event results—and this is where the challenge lies. Without a reliable intermediary, the process of transferring this data to the chain becomes a centralized and insecure process. The Band Protocol solves this problem through a decentralized intermediary platform that relies on a network of validators and delegates.

How does the Band protocol work?

The band is built on BandChain, an independent blockchain built on Cosmos SDK. The logic is simple yet powerful:

Working mechanism in steps:

1. Request: A decentralized application or smart contract that requests specific data according to a custom intermediary script.

2. Aggregation: A random group of validators on the network receives the request and pulls data from the predetermined sources.

3. Aggregation and Verification: Data reports from various auditors are aggregated and analyzed according to the script.

4. Permanent Storage: The aggregated data is stored on BandChain with the creation of a verification guide from the intermediary.

5. Distribution: The audited data is transferred to the applications and chains that were originally requested.

Consensus and Security: BAND Token at the Core

The security of the BAND protocol relies on a consensus mechanism called Delegated Proof of Stake (, where the native BAND token plays a central role.

Key Participants:

• Auditors: More than 90 professional nodes and community members hold BAND tokens to ensure fair behavior. They receive rewards from query fees and block rewards.

• Delegators: BAND token holders can delegate their assets to validators and receive a share of the rewards without running a node.

BAND tokens are also used in the governance of the protocol, meaning that token holders have a say in the development of the network.

Transitioning from Ethereum to Cosmos: A Strategic Shift

The band started on Ethereum but moved to the Cosmos network in June 2020, and this step was transformative:

• Speed and Efficiency: Transaction costs are much lower compared to Ethereum.

• Interoperability between chains: The inter-chain communication protocol )IBC( from Cosmos allows the band to serve Ethereum, Fantom, Avalanche, and many other networks.

• Flexibility: Support for multiple methods to retrieve and aggregate data

Three Design Goals Driving Innovation

1. Speed and Scalability: Serving a huge number of data requests with the least possible delay.

2. Universal Compatibility: Seamlessly working with all available major blockchains.

3. Data Flexibility: Supporting various strategies for obtaining and aggregating data in a unified system.

Available data: More than 80 summaries

The band provides a standard set of data that includes over 80 information feeds from increasing sources. This gives developers of decentralized applications the freedom, speed, and innovation to build their solutions on the blockchain.

Summary

The Band protocol is more than just a data intermediary—it is the critical infrastructure that connects the real world to Web3. With its focus on Decentralization, speed, and interoperability, Band seems to be a strong candidate to become an essential part of the third generation of the Internet.