Band Protocol (BAND) – Crypto news in French

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What is Band Protocol? (BAND)

Band Protocol is software designed to motivate a network of users to provide real-world data to decentralized applications (dapps) running on blockchains.

For example, if a dapp developer wants to allow its users to make bets on the future price of gold, it should be able to determine its price at the desired future date.

To ensure that its smart contracts are executed correctly, Band Protocol offers such a service through software that incentivizes a special class of its users, called validators, to provide and verify external data.

In this way, Band Protocol is often described as a “decentralized oracle” system, a description for blockchains like Chainlink, which, like Band, encourage users to provide verifiable data.

The Band protocol, which originally ran on the Ethereum blockchain, eventually built its own blockchain using Cosmos technology to transmit data across different blockchains, including those based on Cosmos.

Who created the gang diary?

Band Protocol is developed by a startup of the same name based in Thailand. It has three founders: Soravis Srinawakoon, who is the CEO; Sorawit Suriyakarn, Chief Technology Officer; and Paul Nattapatsiri, product manager.

In 2019, Band Protocol raised US$3 million from venture capital firms, including the Indian unit of legendary investor Sequoia Capital. Later that year, it raised another $5.85 million in an initial public offering (IEO).

The protocol had an initial delivery of 100 million BAND tokens, of which 12.37% were sold during the token sale. Band also conducted private token sales and raised $2 million.

In total, over 27% of the BAND token supply was sold to early stage investors. Another 25% of BAND tokens are reserved for the Band Protocol ecosystem and 22% have been allocated to the development team and the foundation that oversees development.

How does the Band Protocol work?

The Band Protocol acts as an intermediary between legacy Internet data sources and blockchains.

It processes data requests from decentralized applications and transmits information using data streams from the rest of the Internet. To do this, it uses its own blockchain, which allows it to publicly verify and validate all its transactions.

The band team argues that this helps ensure that the data provided by its users is not manipulated, inaccurate or otherwise damaged.

Validators

Validators are responsible for verifying that transactions on the Band Protocol are correct and adding new transactions to the Band Protocol blockchain.

A BAND protocol validator must have control of a certain number of BAND tokens, which they can purchase themselves or delegate to another user.

The top 100 candidates with the highest number of BAND tokens are selected by the network to become validators. Validators must follow certain rules, such as ensuring they are not offline, reacting to network events, and confirming transactions accurately.

If this is not the case, the network may confiscate some of the BAND tokens in their possession.

Why is BAND valuable?

Specifically, the Band Protocol applies an inflation plan to its BAND cryptocurrency, meaning that the value of each BAND token decreases over time.

The reason is to encourage users to deposit their coins with validators. When a user deposits coins with a Validator, they receive tokens to compensate for the inflation rate.

The band inflation rate ranges from 7% to 20% and varies depending on the total amount of BAND deposited with validators. The goal is to have deposited two thirds or 66% of all BAND tokens with validators.

Depositing tokens with a validator is also called “staking,” and users who use BAND earn both newly minted tokens from the protocol and fees from applications that use its service.

Additionally, BAND holders who use their money can benefit from bonus tokens from an ecosystem fund that rewards early adopters. The fund offers 3.16 million bonus tokens in the first year, and 315,000 in the fourth year.

These mechanisms mean that Band Protocol rewards BAND holders for participating in maintaining the system and ensuring that it provides accurate external data to users.

Why use BAND?

BAND may be interesting if you think decentralized applications are more widespread and these software require data validation by other blockchains.

You can use BAND if you want to participate in the design of this system, because BAND allows you to vote on proposals that affect the rules of the system.

As demand for the system increases, such proposals may influence how much you earn with your tokens through BAND stacking.

Band Protocol is not the only decentralized oracle system running on a blockchain, however. Competitors like Chainlink are also popular and can put pressure on the price of BAND.