Band Protocol is an oracle platform built on its own native blockchain, BandChain, that feeds outside data into the compartmentalized blockchain world. Band Protocol is compatible with multiple blockchains and has its own native asset called BAND.
The Band Protocol project was originally built on the Ethereum blockchain in 2019. The project then created its own blockchain mainnet using the Cosmos SDK structure as its base, launching the Band Protocol mainnet as its own independent delegated proof-of-stake (DPoS) blockchain called BandChain in 2020.
Using the Cosmos SDK as a base when crafting a blockchain typically means that it will cater to a certain use case. Called an application-specific blockchain, this layout differs from constructing a smart contract-based solution on a multipurpose blockchain.
An open-source project, Band Protocol functions like a translator between two people speaking different languages. Blockchains are, by their nature, each generally compartmentalized into their own worlds, struggling to communicate with the outside world on their own. Outside data, however, is often a necessity when it comes to decentralized applications (DApps).
DApps work and look similar to centralized applications on the front end, but their back ends are based on distributed ledger technology. DApps often require outside data, however. Oracle solutions, such as Band Protocol, can make these two worlds compatible.
The BAND token is the central asset of the BandChain blockchain. The token is used as a governance asset and fee payment vehicle for activities on the chain. Holders of the Band Protocol token can stake their BAND and become block-producing validators on the network, earning block rewards and fees paid by transactors. BAND owners can also receive partial payouts by delegating their tokens to validators.
BAND is inflationary, with new tokens paid as block rewards. Some of each block reward, however, also goes into a community pool for the project’s development. The Band Protocol project aims to keep inflation at a rate that incentivizes a certain percentage of the project’s tokens to be staked on-chain at any given time. BAND is also paid to validators who provide desired data, fulfilling a data need in the oracle system.
BAND token price information
When someone asks about Band Protocol’s price, they are likely wondering about the price of the project’s BAND token. A BAND price history can be seen in the Band Protocol price chart (BAND chart) above, which shows an asset that swings notably in value. The top of the page shows BAND price live today, alongside other data.