What is Band Protocol?
Band Protocol is a decentralized data oracle that connects real-world data to the blockchain ecosystem. Band Protocol collects data from multiple sources then reviews and validates said data to ensure it is correct.
Essentially, Band Protocol works as a bridge that allows information to be passed from external data sources (such as websites) to the blockchain to help validate smart contracts.
For example, someone uses a blockchain sports gambling platform to place a bet on their favorite basketball team winning a tournament. A smart contract is then created between the blockchain gambling platform and the user. Band Protocol can then be connected to the gambling platform and used to supply 100% correct, validated information that proves which basketball team won the tournament — therefore ensuring the smart contract is executed correctly, giving the rightful user their funds.
Band Protocol has a network of participants that work to validate the information that is being transferred through the protocol — ensuring smart contracts are executed with 100% correct data and not false information. Participants are incentivized to ensure all data passed through the Band Protocol is correct, whereas bad actors who try to validate false information are penalized.
The Band Protocol has been built using the Cosmos network — a rival to the well-known Ethereum network. That said, Band Protocol is cross-chain, meaning it can connect to any blockchain to help validate smart contracts.