Band Protocol offers a decentralized data oracle that connects smart contracts such as Defi to external data and APIs. The project has raised ~$10.5 MM via private token sales and the Binance Launchpad Sale.
The project uses Delegated Proof-of-Stake (DPoS) on its Cosmos-based blockchain. BandChain provides a decentralized, scalable, and cross-chain oracle solution for any decentralized finance application or smart contract developer.
BandChain allows developers to customize and create a 'data oracle script' that allows smart contracts to connect to external data sources and APIs, and specify aggregation methods and security parameters.
BAND is the native token of BandChain and is used as a medium of exchange for transfer/data request fees as well as staking to ensure accountability and secure data curation from a trusted global pool of validators.
1. What is Band Protocol (BAND)?
Band Protocol is a decentralized cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. The protocol leverages BandChain, an independent blockchain built specifically for oracle computations including settlement, data sourcing, and aggregation, that is secured by delegated proof-of-stake to enable the following features:
Decentralized economic incentive: BandChain nodes operate independently are required to stake BAND and reputation to uphold data integrity.
Scalability: All oracle computations occur on BandChain with 2 seconds block time. Band oracles are not bottlenecked by speed and congestion of any native blockchain hosting the dApps such as the Ethereum network. This allows Band oracles to be able to respond swiftly to all the data requests from multiple blockchains independently of each other.
Real-Time Data Query: Smart contracts can use Band Protocol to query data on-demand and receive a real-time ready to be confirmed on destination blockchains within 4-6 seconds.
Flexibility: Create fully customizable oracle scripts on BandChain that specify any data sources or APIs to connect to, with customizable aggregation methods and security parameters.
Real-time Payments: Data requests can be paid in real-time on Band Protocol as opposed to a large fixed cost to update reference data.
Band Protocol aims to drive a highly secure decentralized ecosystem by reliably connecting smart contracts with external data, bringing blockchain applications toward mass adoption though oracles managed by its DPoS consensus mechanism". BandChain will be built in 3 phases, to fully realize a multi-faceted oracle solution capable of dealing with all types of data sources.
Phase 0 is the foundational version of BandChain that will enable BAND token transfer and staking for validators.
Phase 1 supports querying from public and permissionless data sources as well as gas metering on WebAssembly scripts on-chain. This will enable the creation of fully customizable oracle scripts, multi-blockchain support, and a catalog of built-in oracle scripts that are readily available to be integrated into DApps.
Phase 2 release improves on composability between multiple data request scripts and support for data sources under a paywall or permissioned API, allowing data source owners to collect revenue from usage. During Phase 2, developers will be able to utilize most of the data on the internet.
Phase 3 supports private/identity oracle scripts and more payment options in the ecosystem, allowing developers to pay in a token of their choice or subscription model. The focus upon this release will complete the BandChain decentralize oracle network, ready to drive interoperability between smart contracts and traditional enterprise services.
Its value proposition is centered around the following areas:
Band Protocol offers a fast, low-cost, and synchronous query model for decentralized applications.
Through the DPoS consensus mechanism, Band Protocol offers a decentralized network where data providers have both money and reputation at stake.
The BAND token aims to capture the network value of Band Protocol, rather than just being a simple payment token.
BAND Token Utility
The BAND Mainnet token for BandChain is necessary to secure and power the decentralized oracle network. The use-cases and utility of BAND include:
Collateral/Stake for Validators: All validators are required to stake BAND with a higher stake equating in a high probability of being selected to fulfill data requests. Underperforming or malicious actors will result in having their tokens and thus value slashed.
Medium of Exchange: BAND tokens are used to pay as a transaction, query fee, and also for data access behind paywall (private APIs).
Participation in BandChain Governance: Token holders are able to vote for the protocol upgrades and parameter changes on BandChain. The governance process allows the token holders to have decision making power in shaping a truly decentralized oracle network on BandChain.
2. Band Protocol's products and features
2.1 Key products (Updated as of August 12th 2020)
CosmoScan
The public block explorer of BandChain that is fully open-source and compatible with the Cosmos-SDK.
CosmoScan is built from grass-roots with multiple design principles that favor security, information integrity, and extensibility for any Cosmos blockchain to use. Here are the key features of CosmoScan:
Real-time updates: Everything including transactions and account information is updated in real-time.
Ledger wallet support: Sending tokens, staking, or withdrawing rewards can be done securely using Ledger hardware device or wallets with Mnemonic in case the Ledger is lost.
Transparent Validator & On-Chain Performance: CosmoScan allows users to visualize each validator’s statistics and the block productions to allow token delegators to conduct thorough due diligence before staking.
Enhanced UI/UX: based on numerous user flows and over 100+ security tests, CosmoScan is encapsulated using a single page that is modern and vibrant in visual design to optimize the user experience.
Screenshot of CosmoScan interface.
Token holders can also stake their BAND tokens on CosmoScan. Token holders can earn through block rewards and additionally, a portion of data query fees, by staking their tokens for their trusted validators. CosmoScan makes it effortless for anyone to connect their wallet, stake tokens, and withdraw the rewards in real-time.
Screenshot of CosmoScan interface.
BAND-Supported Wallets
Band Protocol has integrated with several cryptoassets wallets to ensure that token holders can hold and stake BAND securely in a non-custodial manner.
Atomic Wallet: Consist of desktop and mobile wallets with over 300,000 users allowing BAND token holders to safely store and stake tokens for any validator without any fees.
IBC Wallet: iOS/Android/Web supported wallet created by Cosmostation, enabling the creation of a BandChain wallet and sending, staking, claiming rewards, and managing your BAND tokens.
Frontier Wallet: Mobile DeFi wallet that integrates cryptoasset wallets such as Metamask, Coinbase, and more. Enables BAND storage and staking from a native mobile interface.
Math Wallet: A multi-platform (mobile/desktop/hardware) universal crypto wallet for over 1 million users, 2000+ DApps, 50+ blockchains including staking and storage for BandChain.
Developer Documentation
Band Protocol provides a complete guide for developers to integrate Band Protocol, create and invoke a fully customizable oracle script.
Guide for developers: Step-by-step walkthrough with detailed tutorials on integrations.
Supported blockchains list: Cross-chain compatible using IBC or lite client smart contracts to verify oracle data.
Built-in oracle scripts: Developers can use these scripts that include crypto price, gold price, stock price, bitcoin blocks/hash, trading volume, flight data, and more to support their DApps.
2.2 Key features (Updated as of August 12th 2020)
Architecture overview
Band Protocol aims to drive a secure decentralized ecosystem by reliably connecting smart contracts with external data. The protocol incentivizes multiple independent parties to work cooperatively to provide trusted data using a delegated proof-of-stake consensus. The Band ecosystem primarily consists of these participants:
Validators are specialized entities responsible for the curation of data in return for a data request fee.
Token Holders collectively share a governance stake in Band Protocol and are responsible for ensuring the high quality of data, by delegating BAND tokens to trusted validators in exchange for a portion of the query fee and block rewards.
DApp Developers integrate Band Protocol to consume real-time trusted data on their smart contracts through their own customized oracle script, in exchange for a small (transaction) fee for the data request.
Trusted data sources can choose to provide open APIs or monetize their APIs under a paywall for decentralized applications to consume as a stream of revenue.
Customizable Oracle Scripts
Developers can create their own custom oracle script on BandChain, which uses delegated-proof-of-stake to secure source data, the aggregation methodology, and security parameters such as validator confirmations.
The creation and editing of the oracle script are permissionless, allowing for quick iterations and the consumption of scalable real-time data. An illustrative example of how BandChain oracle works:
3. Economics and supply
3.1 Key metrics
Token Name | |
|---|---|
Token Type | ERC-20 |
Seed Sale Token Price | 1 BAND = $0.30 |
Seed Sale Allocation | 10.00% of total token supply |
Seed Sale Date | August to October 2018 |
Amount Raised Private Sale | $2,000,000 |
Private Sale Token Price | 1 BAND = $0.40 |
Private Sale Allocation | 5.00% of total token supply |
Private Sale Date | June to August 2019 |
LaunchPad Allocation | $0.473 USD (price in BNB TBD) |
LaunchPad Sale Token Price | 12,368,200 BAND (12.37%) |
LaunchPad Sale Date | September 2019 |
Initial Circulating Supply | 17,083,333 (17.08%) |
Total Token Supply | 100,000,000 BAND |
The token supply distribution is as follows:
Seed Sale Investors comprise 10.00% of the total token supply.
Private Sale Investors comprise 5.00% of the total token supply.
Public Sale Investors comprise 12.37% of the total token supply.
Ecosystem comprises 25.63% of the total token supply.
Team comprises 20% of the total token supply.
Advisors comprise 5.00% of the total token supply.
Foundation comprises 22.00% of the total token supply.
BAND token distribution (%)
3.2 Seed sale overview
The Seed Sale was conducted from August to October 2018 for $0.30 / BAND, and raised a total of $3.00MM, for 10.00% of the total token supply. Only USD was raised in the Seed Sale.
Private sale overview
The Private Sale was conducted from June to August 2019 for $0.40 / BAND, and raised a total of $2.00MM, for 5.00% of the total token supply. The Private Sale consists of 1,875,000 USD and 125,000 USDC.
Public sale overview
The Binance Launchpad Sale will be conducted on September 2019 for a total of $5.85MM worth of BNB at $0.473 / BAND for 12.37% of the total token supply. BAND / BNB exchange rate will be determined prior to day of sale.
BAND token release schedule (%)
3.3 Token governance and use of funds
As of September 2019, Band Protocol has used approximately 5% of TGE funds and the team has an expected runway of at least 4 years. Any funds raised will be spent according to the following allocations:
60% technical and business development.
20% marketing.
10% operation.
10% legal and audit fee.
Funds are raised in fiat or stablecoins so the team is shielded from crypto price’s volatility risk. Stablecoins are stored in multi-signature wallets, requiring at least 2 out of 3 signatures from top management team.
4. Roadmap, updates, and business development
Band Protocol team has been actively working on BandChain since 2019 with the Phase 0 Mainnet publicly launching on June 10, 2020. Their current development roadmap is building towards the completion of BandChain in 3 more phases that will fully realize a multi-faceted oracle solution capable of dealing with all types of data sources.
4.1 Recent achievements (Updated as of August 12th 2020)
Date | Achievement | Commentary |
|---|---|---|
2018: Q3 | Whitepaper release | |
2018: Q4 | CoinHatcher alpha release | |
2019: Q1 | CoinHatcher beta release with token integration | |
2019: Q1 | Revised whitepaper release | |
2019: Q2 | Private Testnet release | |
2019: Q2 | Smart contract security audit | |
2019: Q3 | Public Testnet release | |
2020: Q2 | Release of Mainnet phase 0 | |
2020: Q2 | CosmoScan release | |
2020: Q2 | 17 genesis validators bootstrapping BandChain | |
2020: Q3 | Mainnet genesis ceremony | |
2020: Q3 | Phase 1 timeline | |
2020: Q3 | Release of Phase 1 Testnet #1 |
4.2 Updated roadmap (Updated as of August 12th 2020)
Q3 2020
Announced bug bounty program.
Completed Smart Contract Audit.
Released Proof-of-Authority Mainnet.
Q4 2020
Migration of Phase 0 to Phase 1.
Integrating Testnet DApps and partners to Mainnet.
Implementing bridges to multiple blockchains.
Q1 2021
Release of Phase 2 technical details.
Release of Phase 2 Testnet details.
Release of Phase 2 Mainnet.
Onboarding of permissioned/paid data sources & APIs.
5. Project team
6. Band Protocol's activity and community overview
6.1 Social and community data
Strategy overview
The initial community development plan will be focused on both dApp developers and general crypto users. The team has created a strong network of developers, starting with the South-East Asian community where developers began building on Band Protocol.
Band Protocol will continue to expand global and local presence with regards to its developer communities.
Band Protocol focuses on three key groups for future community growth:
General community users: Band Protocol will focus on educating users on token staking and getting the most value out of holding BAND, along with promoting user-generated content. Band will reward users who contribute positively in community building, content creation and evangelizing Band Protocol through an Ambassador Program. The community management team will be available 24/7 to answer questions and facilitate discussions in community channels as well as engaging local events to educate and foster adoption of Band Protocol.
Developer community: Band Protocol focuses on giving developer support through both offline and online channels. By design, developers can integrate Band data with only a few lines of Solidity code. The simplicity of integrating Band Protocol makes it easy for any developer to experiment. With this advantage, Band will organize both online and local hackathons on a regular basis. Promising projects will be eligible for receiving funding and additional support through a Developer Grant Program.
Public validators: Band Protocol is targeting a global pool of 100+ nodes upon the completed rollout of BandChain to achieve the highest degree of decentralization as possible. Gradually, reputable and trusted public validators will be onboarded onto BandChain to ensure the stability of the network.
Community and social channels (Updated as of August 12th 2020)
Telegram (English) | 13.8K Members
Twitter (English) | 23.2K Followers
Medium (English) | 1.7K Followers
Facebook (Thai) | 1.7K Members
Reddit (English) | 1.1K Followers