As of today, the Band Oracle has been integrated into the Cosmos ecosystem, through Starport, to further the realization of the Internet of Blockchains.
The versatility of Cosmos is expanding as blockchains within the ecosystem are now even more connected and interoperable than ever before. With this Band Protocol integration in Starport, the Cosmos blockchain development tool, newly created chains are able to exchange feeds of varying types of data by using an oracle and the Cosmos interoperability standard: Inter-Blockchain Communication protocol (IBC).
Any developer who builds a chain using Starport can easily add a data-query function from an oracle. This is a perfect example of the adaptability and ever-expanding potential of the IBC protocol. This data rich feature is a great representation of the advantage that comes with building with Cosmos’ open-sourced technology.
One of the reasons that blockchain has gained such prominence in our world today is because there is no technology that tracks what is happening within its network better than a blockchain. However, if there is a service on-chain that needs to access data from outside the network, a reliable method to verify that real-world data is required. This data verification requirement is where an oracle comes into play.
Oracles are middleware that feed data into blockchains. A decentralized oracle like Band Protocol works in the same way as a decentralized blockchain by distributing trust among many network participants. By using many different data sources and implementing an oracle system that isn’t controlled by a single entity, a decentralized oracle provides an increased level of security of information. After data has been verified by an oracle’s decentralized network of participants, it can then be used within the blockchain.
As an example, let’s say you wanted to use a service on a blockchain to make a purchase with cryptocurrency and you needed to access the price of a product as well as the exchange rate of a specific coin. In this case, you would use an oracle to take that real-world information, verify it, and use it to process the transaction within the blockchain application. Currently, Band Protocol provides secure and decentralized data that are crucial to the functions of various DeFi applications across all sectors such as lending and borrowing, synthetic assets, insurance, stablecoins, Decentralized exchanges, NFTs, etc.
Band Protocol is a Decentralized Cross-Chain Data Oracle that aggregates and connects real-world data and APIs to smart contracts. It is a time-tested and secure oracle provider with over 7.4 million requests and partners such as Terra, Mirror, Venus, C.R.E.A.M. Finance, Injective, and Alpha Finance.
Although many chains have already been integrated with the Band Protocol Oracle, Band Protocol Oracle is the first to be adopted as a standard into Starport, the most convenient way to build a blockchain on Cosmos. This means that decentralized application (DApp) developers can easily access decentralized and secure data from Band Protocol as they develop on Cosmos. Until now, IBC was primarily used for asset transfers. With the recent integration of the Band module onto the Starport framework, and Band Protocol being on the verge of enabling their IBC-connection to Cosmos, IBC is not only providing a new capability for existing chains, but is also providing incredible accessibility to new projects in development within the Cosmos space.
Being able to source decentralized data is key to building secure and widely-used blockchain applications. With access to this data, blockchains in the network can now utilize information to fit their own needs and innovate towards new capabilities. With IBC as a native protocol for apps developed with the Cosmos SDK, and Band Protocol’s flexible oracle design built into Starport, new chain developers have access to all sorts of decentralized data, such as token information, real-world events, sports, weather, random number generation, and more. Additionally, the IBC protocol is also available to other chains outside of the Cosmos ecosystem to expand the outreach of the blockchain information exchange.
This growth-enabling integration of the Band Protocol Oracle opens up a wide range of possibilities, further developing use cases such as lending, staking, and NFT development. This will also allow Starport developers to connect their applications with traditional web APIs. This broadens the horizon for any team setting out to build their own blockchain and sets Band Protocol as a cross-chain standard for oracle functionalities.