Band Protocol is a decentralized cross-chain oracle crypto platform.
In other words, it is an alternative to Chainlink.
In fact, he was born as a competitor to Chainlink, with several differences that make him, for all intents and purposes, a challenger.
The main difference is that Band Protocol v2 uses your own blockchain, BandChain, based on Tendermint, with a BFT consensus algorithm (DPoS), and operates within the Cosmos ecosystem.
Chainlink, on the other hand, not a blockchain, so its nodes function only as oracles focused exclusively on data delivery.
That said, Band Protocol is a platform which aggregates and links real-world data and APIs to smart contracts, thus acting as an "oracle" for the latter.
It is cross chain because can be used in different blockchains and wants to focus in particular on serving the world of decentralized finance.
In fact, many DeFi dApps need token pricing feeds to work, and Band Protocol wants to provide robust and tamper-proof feeds.
The flexible design of the Band Protocol oracles allows developers to use any real-world data, including sporting events, weather conditions, random numbers, and more. In fact, developers can create custom oracles using WebAssembly.
BAND, Band Protocol token
This protocol also has its own native token, called BAND.
BAND made its debut in the cryptocurrency markets in September 2019, priced at around $ 0.6. At that time there was only the first version of Band Protocol, based on Ethereum, and until April 2020 the price of BAND remained fairly constant.
With the release of version 2 of the protocol, and especially the new BandChain, the price started to rise. In July it had already exceeded $ 4.5, while in August it was close to $ 15.
On September 2, it briefly surpassed $ 15, then fell back first to $ 9 and then to $ 6.10 current.
So since the BandChain mainnet launch was announced, the BAND price first up 2,400% in four months and then fell 55% in less than a month. Today, however, it is more than ten times greater than a year ago.
However, it must be said that the price of LINK, which is the token of the competitor Chainlink, in recent months has registered a similar trend, with an increase of more than 400% from May to August, followed by a decline of almost fifty%.