27.06.2023
What does DeFi have to do with it?
One of the biggest areas in the financial and cryptocurrency sector is considered to be decentralized finance, or DeFi for short. This type of finance is often applied to those transactions that go by the banking system and are not regulated according to its rules. The main challenge for the DeFi industry — change entrenched financial structures to more democratic ones, as well as completely exclude intermediaries. However, there are some problems that hinder this. The question arises: “How to unite two worlds: real and virtual, DeFi and centralized finance?”. To solve this, it was decided to create a band token.
Band Protocol — what is this?
Band was designed in 2017 by an IT programmer and developer at Ericsson and Boston — Soravis Vrinavakun. He is currently the CEO of the company. Also involved in the development of this project were Sorawit Suriyakarn and Paul Chonpimai, who have extensive programming experience in companies such as Turf mapp, Tripadvisor, Dropbox, Quora.
Band Protocol — is a relatively new oracle in the Blockchain, which ensures the integrity of information and allows you to manage it. The Oracle in the digital financial market acts as a service, which guarantees the connection between smart contracts from the Blockchain with the real world. Specifically, Blockchain does not have access to all data that is outside the network; this requires special third-party services. The official website of the BAND project says that it solves this issue by creating a digital bridge that will transfer information from a virtual network to a real one and vice versa. Thus, it will provide the most secure interconnection between the smart contract and the classic network.
The Band cryptocurrency protocol functions thanks to the proof-of-stake consensus. Initially, the algorithm was released on the basis of the Ethereum cryptocurrency Blockchain, but a year later it changed course to Cosmos algorithms, and subsequently released the unique Band-Chain blockchain. It was the decision to create their own algorithm that was the most effective, since now the band cryptocurrency is a full-fledged competition for other networks. One of which is Chainlink and its decentralized finance.
BAND — it is a personally issued cryptocurrency of the Band Protocol ecosystem, which is used in the role of providing devices that take an active part in fulfilling network requests. Also, band protocol cryptocurrency is the main means for converting to Band Chain — for payments for private data.
What is unique about Band Protocol?
The main features of this cryptocurrency can be considered speed and efficiency, rather than, for example, the solution of a competitor Oracle. It also has compatibility with a large number of other frameworks and blockchains that develop smart contracts.
In order for data to be transferred between Band chains, the project developers want to use the IBC protocol. So far, this cannot happen, as the protocol is under development. Today, the company's management cannot name a specific date when it will be possible to use the new algorithm.
Band is also unique in that it allows any user to create and serve new information requests without additional permissions. It also provides the most simplified system of smart contracts. It does this through the use of Data Band oracles thanks to just a couple of code lines that call the working interface.
Oracles — what is this?
Oracle — is a kind of information provider from the real world to the virtual one, that is, to smart contracts. Automated contracts cannot manage data from the Blockchain on their own initiative, since the selection of information will be significantly limited. This is where the oracle — Band Protocol — comes to the rescue.
In simple words, you have developed a decentralized cryptocurrency exchange. This trading exchange needs to be aware of all the information, quotes, rates, etc., in order to constantly update new data. This is what oracles were designed for. They allow the site to connect to the original data provider.
Band Protocol and Chainlink: Differences and Similarities
The main difference between these two tokens can be considered that the first one works on the Cosmos blockchain, and the second — on the ethereum blockchain. Speaking of Ethereum benefits then it boasts enhanced decentralization. But, like on other platforms, there are some difficulties. Often, it suffers from congestion in the network itself, which results in a decrease in the speed of transactions and an increase in commissions.
As you can see, the project developers interact with a fairly congested network. The sources of this problem were hidden in the PoW algorithm, which could not cope with large amounts of information and stalled the entire project. As a result, it was decided to switch to a new PoS algorithm, which should take on the responsibility of increasing the scalability of the network.
It is impossible to say for sure that Cosmos is a direct competitor to Ethereum, since it loses to it in many aspects, for example, it is inferior in the level of distribution. As part of the creation of this blockchain, programmers were aimed at solving those problems that were associated with access. Users should have been given an open path to various tools that do not affect the main block chain. Thus, the throughput of the chain and blocks in it should have increased.
Significant differences in the operation of the two blockchains do not allow them to be compared with each other. However, it is important to understand that each of them has both its own characteristics, pluses and minuses. In short, the Band protocol has an increased speed and a reduced price, and Chainlink is as decentralized as possible. Many analysts believe that the transition of the Ethereum Blockchain to the PoS algorithm will help give it more credibility among other sites.
Where can I buy a BAND token?
At the time of writing, the Band Protocol cryptocurrency token is one of the largest assets, with a total capitalization of over $100 million. Accordingly, this coin is traded on the most popular exchanges and can be purchased quite easily. You can buy Band cryptocurrency at:
- Binance (the largest liquidity here);
- Huobi;
- Bilaxy;
- Currency.com;
- Coinbase;
- Okex;
- Bybit;
- Kraken;
- eToro;
- Coinsbit.
Also, this coin, like many others, can be obtained through staking. Staking — is a long-term saving of digital tokens on your personal electronic wallet, as a result of which you can receive a reward in the form of real money.
Keep your BAND coins and also manage them you can use the band protocol wallet. Simply put, your cryptocurrency will be stored inside the blockchain, and you can access it at any time. Here it is important not to forget your passwords, which will give you the opportunity to use it. The band wallet provides its users with a variety of options for financial transactions. You can store, receive, send, and exchange cryptocurrency.
If you have already become the owner of the Band Protocol cryptocurrency and do not know how to dispose of it, then we have a couple of tips for you. Band token holders have the right to vote internally in the system, and can also become a data provider themselves. This will be real only after the user sends all the necessary data to complete the contract. After that, the user will be considered a full-fledged provider, which has tokens that will serve as collateral. That is, the cryptocurrency can continue to be used as a stablecoin for decentralized transactions.
The main directions of the project
The developers of the Band cryptocurrency have identified priority aspects for the full functioning of their activities, to which they devote the most time, namely:
- ensuring the reliability of the transmitted data;
- decentralized purchase and sale of tokens;
- throughput of about 50 exchange operations per second;
- improvement of the DeFi product;
- seamless connection between the real world and dApps;
Band Protocol perspective
Since the band protocol course had a cost of $0.203625 since its release in 2019, its price has now increased significantly. In percentage terms, this is about 800% more than the original amount. Here we can already talk about the positive dynamics of changes, which are kept at the same level, if we compare the price in recent years.
In one of his interviews, programmer Timur Imrut pointed out that the importance of oracles will increase every year, since the emergence of new smart contracts will oblige the emergence of decentralized services. Therefore, the demand for Band Protocol will only grow.
We hasten to warn you that any of the cryptocurrencies contains risks. The volatility of the rates makes you think about not making impulsive purchases, but once again analyzing everything in more detail. If you are sure that you want to purchase Band Protocol, then we advise you to use the services of Buycoin.online.
Buycoin.online — safe purchase of cryptocurrency in Europe at the most favorable rates.
