Binance Smart Chain has partnered with the cross-chain data-oracle platform, Band protocol. Completing its integration with the smart chain, Band protocol is known for aggregating real-world data and connecting with smart contracts via API. The alliance would also help Binance to use Band’s decentralized and customizable oracles to scale the defi applications.
— Binance (@binance) August 19, 2020
The official announcement listed several advantages that would come to the Binance smart chain with Band protocol integration. The official statement read:
“The integration with Band Protocol offers an efficient oracle request process, low-cost real-time data, high-quality data, end-to-end customizability, and decentralization – opening the gateway for reliable DeFi and blockchain applications to be built on Binance Smart Chain.”
“Binance Smart Chain developers are now equipped to build truly scalable products, including DeFi, programmable payments, betting games, VRF applications, prediction markets, and more!”
The Binance team’s decision to go with Band protocol was because it sought to enter the defi ecosystem. Band Protocols tools and APS can be used by developers to create various new use cases for smart contracts which powers the defi ecosystem. They also listed few features of the BAND protocol that led to select it over other oracle service providers.
Optimized For Scalability & Efficiency:
Band Protocol’s oracle mechanism is based on BandChain, an independent high-performant blockchain, which has been built purely for oracle computations such as data sourcing, aggregating, updates, and settlement.
Low-Cost Real-Time Data:
Built on the Cosmos-SDK, BandChain can handle over 1,000 transactions per second and has a short block time of roughly 2 seconds
High-Quality Data With End-to-End Customizability:
Developers can create custom decentralized oracles on BandChain that specify any external data source or API.
Fully Decentralized Oracle Mechanism:
Band Protocol currently has 59+ validator nodes on the BandChain decentralized oracle network, who are required to stake BAND tokens to participate in the data request process as determined by a randomized stake-weighted algorithm.
Binance smart chain aims to use the data oracle and API tools offered by BAND to strengthen its position in the defi space, which has been multiplying and has drawn tremendous interest from various traders and investors.