Chainlink and Band protocol are two blockchain oracles that have been gaining momentum. Oracles are a new type of technology that enables the transfer of real-world data into the blockchain network. They make data readily available for blockchains and their smart contracts. It can be hardware, software, or consensus-based.
Chainlink is the first oracle platform, and it was launched in September 2017 on the Ethereum blockchain. It aims to integrate off-chain data with existing smart contracts. It provides projects on the Ethereum blockchain with relevant data. In essence, it comprises nodes built on an oracle framework to transmit data and information from off-blockchain sources to the smart contracts on supported blockchains.
Its execution process includes oracle selection, data reporting, and result aggregation. Like Chainlink, Band protocol connects the blockchain network with verifiable data from the outside world. It was initially built on the Ethereum blockchain in 2017 when it was launched. However, it was recently moved to the Cosmos network.
It uses the Tendermint Delegated-Proof-of-Stake consensus algorithm. Also, it has Inter-Blockchain Communication (IBC) protocol that allows it to interact with other blockchains. It is aimed at improving speed, scalability, cross-chain interoperability, and data flexibility on the blockchain.
While both offer nearly the same functionality, the Band protocol is interoperable, cheaper, faster, and easier to use. Moreover, data providers can earn their data native tokens for data provision. While the total and max supply of LINK is 1 billion, BAND is capped at 100 million.
One LINK is worth $16.26 as of today having dropped by 68.8% from its ATH of $52.70 in May 2021. BAND, on the other hand, costs $3.50 right now which is 84.8% from its peak of $22.83 in April 2021. As blockchain oracles, BAND has the potential of outperforming LINK in the long run and is low right now that you can bag it massively. In the long run, its limited supply will contribute to driving its price upward.
This is asides from its compatibility with other blockchains and eco-friendly nature. If you are looking for something stable and secure, LINK is the call. But if you want a long-term investment option, then go for BAND.
Cryptocurrency investment is very risky. Do not put the money you can’t afford to lose wholeheartedly. Deal wisely and do your research.