What Is Band Protocol?
The Band Protocol is a decentralized, secure, and scalable blockchain agnostic oracle. The protocol works with multiple blockchains such as Ethereum, Cosmos, and Polkadot. As one of the projects that originated from the Binance launchpad, it started with a strong spotlight. Over the past year, they have shown they’re worth much more than just hype and delivered reliable products that enrich the usability of multiple projects. Especially their feature of connecting smart contracts with and through APIs is really powerful. The oracle is protected with a Delegated Proof-of-Stake (DPos) mechanism. The benefits of holding the Band Protocol token (BAND) are the following:
- Collateral for the dataset tokens required for the usage of the protocol
- Rewards for staking
- Governance rights to decide the future of the protocol
The sale on Binance consisted of only 5% of the total token value, and the rest is mainly used for technical and business development, marketing, and operations. There’s a lot of activity on the band protocol Github page showing there’s constant development. The mainnet hasn’t launched yet, but when that’s launched, the BAND token holders will be given frequent rewards when staking their tokens or running a validator’s node.
Pros and Cons of Band Protocol
Let’s have a look at some advantages and disadvantages of Band.
Advantages of Band
- Five working products
- Compatible with large blockchains like Polkadot, Ethereum and Cosmos
- Strong partnerships with Binance and many others
- Financially stable company with a runway that can last at least for 4-6 years
Disadvantages of Band
- Mainnet has not been launched yet
- Relatively new company