The battle to become the DeFi data oracle of choice is getting more intense.
The cross chain data oracle Band Protocol 2.0 launched today on the Cosmos network, bringing real world data to smart contracts across the blockchain ecosystem. The upgraded protocol can process 50 transactions per second and will have the added benefit of avoiding network congestion on the Ethereum chain connected to major losses during the March crypto crash.
With this update, Band is banking on an appetite in the world of crypto for additional fast, accurate data feeds central to the operations of many DeFi applications.
Band Protocol initially launched on the Ethereum blockchain in September 2019 with support from Sequoia Capital. In addition to token price data, Band Protocol will also provide information like sporting results, insurance data, and random number generation to the growing ecosystem of decentralized applications.
Bandchain, the blockchain developed by Band Protocol to power their oracle network, will initially launch with 17 genesis validators while onboarding exchanges and other partners. The network will eventually grow to more than 50 public validators and allow delegated staking to help secure the network.
“We evaluated multiple options, and came to the conclusion that Cosmos-SDK is one of the most robust and well-tested platforms for building blockchains with first-class support for blockchain interoperability,” Band Protocol co-founder and CEO Soravis Srinawakoon told Decrypt.
“They are also production-ready, which means we don’t have to depend on them to launch their solution. Building on Cosmos-SDK allows BandChain to deliver real-time oracle data natively through the IBC protocol and decentralized lite-client bridges, serving as the backbone of decentralized applications on other platforms.”
Band Protocol 2.0 will also feature instant finality, a feature of the Cosmos infrastructure that eliminates the need to wait for multiple blocks to be generated to confirm a transaction, as is required with Bitcoin and Ethereum. Using Cosmos also allows Band Protocol to send oracle data across many different blockchains within a single transaction.
The original Band Protocol is already used by Binance to provide pricing data for more than 600 trading pairs. With the likes of Coinbase and Chainlink already in the oracle arena, the competition in this space will be stiff.