Crypto Academy Season 3 | Intermediate course by @allbert –week 7: Blockchain Oracle

The lesson today is based on Blockchain oracles and gives a very detailed understanding of it including a comprehensive explanation of one of its examples seen as the CHAINLINK.
Before I bring up the Blockchain oracle I wish to shed a little light on the topic.

Firstly, the term oracle shows an intermediary between two entities just like we see in traditional systems where worshippers hear from someone who represents the actual deity.

The Blockchain oracle, shows the relationship between decentralized web, and the Centralized one too. These blockchain oracles, use smart contracts to take data from the main source and breaks it down to way that's understood by the blockchain web under the same understandable language.

History and Definition of BAND PROTOCOL

source

The BAND PROTOCOL, kicked off in Thailand, with three inventors namely : Soravis Srinawakoon, Sorawit Suriyakarn and Paul Nattapatsiri with different administrative positions of :CEO, Chief Technology Officer and Chief Product Officer respectively.
We see this Blockchain Oracle, to be one of the successful IEOs as they managed to raise $3 million from several capital institutions and even raised an extra $5.85 million in the same 2019.

This oracle, was originally built on the Ethereum blockchain but finally built its own blockchain with the use of COSMOS SDK to deliver data over several blockchains in June 2020 when the network was upgraded to Band Protocol 2.0

The Band Protocol could be seen as a decentralized blockchain oracle that helps organize and connect data and APIs to smart contracts using the Delegated proof of Stake (Dpos) to ensure quality of data It is a protocol, that makes use of smart contracts softwares such as Forecasting markets, games and Decentralized Finance to be built on the blockchain independent of a centralized protocol.
The blockchain validates too, stake the native token and earn some part of the fees accumulated by the protocol
The BAND chain's protocol was released in four phases including :

• Phase 0 : this was the ground version launched on June 6,2020 of this Band Protocol that made for users to transfer and stake BAND tokens

• Phase 1: this one backs up non-permission creating of customized data oracle patterns and tends to inquire into unknown data sources and this one was launched on October 15,2020

• Phase 2: This phase covers how API providers are allowed to spread their data on the blockchain and still make income on the blockchain

• Phase 3: This final aspect, brings choices to the users ( identity and payment ones) that allows for the participants paying in ways easy and convenient for them and focus on this release making the Band Protocol complete to be able to work with smart contracts and traditional exchanges

The Band Protocol, has a native token which is the BAND token.
BAND, is the official native token of the Band Protocol oracle and is available as an ERC-20 and Band Protocol token. This token is used in different ways including :

• They staked by validators who earn a portion of Yield later from the liquidity pool
• They are used for the running of transactions and for data access to Defis, games etc
• They are more so used for participations in voting for protocol upgrades and allocates decision making power to them in the same vein.

• The value of the Band Token as at today can be seen as $7.80 and its market capitalization as $274, 411,642 as seen above.

Functionalities and real-life applications.

We'll be considering the functionalities and real life applications of the Band Protocol

• The Band Protocol, takes the role of a middleman between online data channels and blockchains

• The software on the other hand, processes requests for information from Dapps and conveys information with the use of data feeds from the rest of the website using its very blockchain and screening though all of its transactions making sure, they are totally checked and validated

• The Band Protocol validators, helps the users data supply to be utmostly guided from manipulation, corruption of inaccuracy and even add newer ones to it.
  Note that :these validators are the top hundred highest holders of the Band Tokens

• The Band tokens too are decisive in governance of the blockchain, implementing of changes via voting etc.

Pros and Cons.

We'll want to be considering the Pros and Cons of the Band Protocol

PROS :

• The native token of the Band Protocol, allocates decision making power to the holders ie they vote for protocol upgrade choices and take part in major voting issues

• On the blockchain, circulated data, can be converted to liquidity without necessarily using intermediaries which would slow down or even bring errors to the process

• With respect to their various amount /contribution of BAND tokens staked in the liquidity pool, validators get block rewards and earn interest fees which is a plus to the protocol

• The data producers too, have a financial benefiting and name reward in having membership of the network.

• When it comes to scalability, the Band Protocol leaves the usage cost at same level in spite of the number of Dapps used by the data

CONS

• The Validator status requirements of the Band Protocol brings cold feet to participants since the amount of tokens to hold would be large before one can be a Validator and in a situation where one isn't, their stakes are Delegated to the actual validators

• The supremacy of the Validators over the Delegators is exploitative since the amount Delegated by the users doesn't matter instead what matters is the amount that validators validate.

• The absence of trading and other intense trade activities except staking makes the platform look shabby since coins are meant to be traded and not just staked.

• There is a placement of a compulsory commission on interest fees generated from staking to a particular funding which doesn't bring about total user's interests

• The Band Protocol too limits data accessibility since every node in the software must have the same data which would relatively limit users choices

Future developments and new projects

Despite the great performance of the Band Protocol, this Blockchain oracle intends on working on its self and making structures better and bringing about leading entity.

• Firstly, after proper study, we see the Band Protocol plans to launching Band Chain phase where there will be concentration on its company growth to open up the entire data for the blockchain and Dapps to scrutinize securely unlike formerly as we see that the Band Protocol limits every users to the same data.

• The Protocol also hopes to make its Infrastructure stronger for its first and Second layers and to make the COSMOS IBC more compatible to its first phase

• Plans for a more verified blockchain function is also included and data would be spread across the chain for its users to utilize utmostly

CONCLUSION

The band protocol is a unique and awesome block chain oracle
Simply explained, they establish the relationship between on chain and off chain data In a system My work here today was on the Blockchain Oracle known as the BAND PROTOCOL

All round it was a great and Beautiful lecture by @allbert and I really learnt a lot of value doing this homework post

I am @kelechisamuel thanks for reading my post

Best regards
@allbert