Band Protocol Use Cases and Applications

Overview of Band Architecture

Band Protocol provides solutions and products for decentralized data governance in four key areas:

1. Data Valuation & Price Discovery — Dataset Tokens & Issuance with bonding curves

The tokenization of datasets is necessary for the correct incentive mechanisms to be realized for effective protocol operation. In the permission-less environment of Web3.0, participants performing work must receive direct economic benefits (such as token payments) in order for the system to operate effectively and for participants to not act maliciously.

Dataset tokens are issued and valued for each associated dataset and give the ability for an incentive mechanism to be tied to the specific mechanics of that particular dataset. It also gives the opportunity for new business models to emerge where users retain control and sovereignty over their data.

Bonding curves (similar to the structure of UniSwap and Bancor) are used to issue the Dataset tokens such that there will always be liquidity and availability for use of these tokens and hence maintain continuous effective operation of the protocol.

2. Delegated Curation — Management of data feeds and oracles

DApps cannot directly access trusted data for their dApp to work. Without access to external data and APIs the use cases for DApps are very limited.

Existing data feed solutions such as oracles are either very centralized with critical single points of failure or are very nascent, inefficient and developer unfriendly such as prediction markets which presently are too illiquid to be practical to meet a DApp developers needs. For example many decentralized finance and betting applications suffer in their security models due to their need to access to price feed and external event data.

Band Protocol provides a standard framework for users and developers of these DApps to manage the access to data sources and incentivise their correct usage resulting in more robust and usable DApps.

In this framework the responsibility of providing and curating data is delegated to elected top data providers. These top data providers are governed by the Band Token holders, allowing them to remove underperforming providers to ensure optimal operation. An elected data provider stakes dataset tokens along with other token holders who stake on their behalf, and collects rewards in the form of the fees paid by the dApps that consume the provided data.

3. Direct Curation — Token Curated Registries

Centralized information providers are more susceptible to corruption and malicious behaviour without appropriate checks and balances.

Direct curation through token curated registries provides a more reliable and transparent way for data to be organized and managed for a particular group wishing to use that particular data source, with incentives to ensure their correct management.

Band Protocol will be building community-curated blockchain content platform, CoinHatcher, that focuses on providing accurate cryptocurrency price, volume, news and research data.

4. Private Data Governance — Information Sharing & Decentralized Reputation Standards

A major factor limiting enterprise participation in the public blockchain ecosystem is the lack of a means for companies to share data securely and privately in a decentralized system. This results in data remaining highly siloed and forces many to resort to more permissioned blockchain solutions.

Band will build a private information sharing solution for decentralized technology with a focus on identity management, reputation systems, credit scoring and supply chain.