Nervos Integrates Band Protocol to Bring Scalable Oracle Technology & Extensive Real-World Data To DApps
While there is a lot of hype about decentralized finance in the blockchain community, the sector is also ripe with opportunity. One of our goals at Nervos is to be a foundational part of the movement — to nurture and mobilize the next generation of decentralized finance (DeFi) developers and entrepreneurs to build and scale on our network. To do so, we’re focused on giving our growing community access to resources to see this vision come to life. More importantly, we’re giving developers the flexibility to use their preferred tools to build DeFi applications and customizable oracles using Band Protocol on the Nervos blockchain.
We’re excited to announce that we’re integrating with Band Protocol, a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Integrating with Band Protocol will allow Nervos developers and third-party applications alike to utilize price feeds, which are particularly useful for DeFi applications, and obtain other real-world data in real time from external sources to power any type of decentralized application. This will bring significant improvements in the existing data availability and scalability in the Nervos ecosystem.
Here are some of the compelling features that have led Nervos to integrate Band Protocol:
- Scalable & Efficient
Band Protocol offloads all oracle computations such as data sourcing, aggregation, updates, and settlement onto BandChain — an independent high-performance blockchain. This eliminates excessive data request costs and dependencies from any specific blockchain used for DApps, safeguarding users from consuming delayed or incorrect data arising from congested networks.
- End-to-End Customizability & Flexibility
Using BandChain, developers can create their own fine-tuned decentralized oracles to bridge data from any external source or API using custom parameters for aggregation, update time and validator confirmations. This means the demands of a real-time data request can be met while also ensuring the highest level of resistance to manipulation and security guarantee without manually onboarding data providers for each feed.
- Truly Decentralized Oracle Mechanism
BandChain is currently being secured by 66 active validators on the Mainnet who are required to stake BAND tokens to fulfil data requests as determined by a randomized stake-weighted algorithm. There is no centralized or whitelisting process, all BandChain network participants are economically incentivized to secure the decentralized oracle network.
Integrating with Band Protocol: A two-phase process
To ensure the success of Nervos’ integration with Band Protocol, the process will take place in two phases over the next few months.
During the first phase, which is expected to be completed by the end of August, Nervos will support the Band Protocol team with an CKB-VM (RISC-V instructions based) bridge contract. The initial bridge will rely on a trusted data relayer operated by Band Foundation. This will allow dApps on Nervos to tap into selected crypto price feeds from BandChain, Band Protocol’s high performance blockchain for data oracles, to bootstrap the DeFi ecosystem native to Nervos. Bridges are important in the blockchain space because they connect separate blockchain ecosystems. The interoperability achieved through the bridge contract will enable developers across both BandChain and Nervos Network to build decentralized applications (dApps) and take advantage of Band Protocol’s oracles for truly scalable decentralized applications.
The second phase, which is scheduled for September and October, will result in a full bridge to the BandChain. This second phase of integration will enable Nervos developers to connect dApps with any open APIs via a customizable Data Oracle Script, which is programmable in Rust and any language compatible with the WebAssembly standard (check out technical specification in Band Protocol’s developer docs). The bridge will operate in a fully trustless and permissionless manner, covering exhaustively all potential dApp developer data needs on Nervos as they’re able to leverage any open and premium data sources such as crypto price aggregators, exchanges, foreign exchange rate providers, sports and esports data reporters, and more through Band Protocol’s oracle technology.
Receiving access to feed-trusted price data through Band Protocol
Access to external data is crucial when building dApps on the blockchain. In particular, DeFi app developers need access to price feeds for token swaps and to begin the loan collateralization process. With Band Protocol’s built in-price oracle, Nervos developers can rest assured that their price feeds are manipulation resistant and up-to-date as they’re not susceptible to long update times or blockchain congestion. .
Outside of the DeFi space, Band Protocol’s flexible oracle design enables developers to access a variety of real-world data related to events, sports, weather, random numbers and more. Developers can even create custom-made oracles using WebAssembly to connect smart contracts with traditional web APIs within minutes.
Band Protocol CEO and Co-Founder, Soravis Srinawakoon, talked about the potential for smart contact and blockchain development that will result from the integration.
“With access to Band Protocol’s secure, blockchain-agnostic, decentralized oracle framework, Nervos developers will be able to easily access price feeds, event information, and other data oracles — enabling them to continue to build scalable and innovative decentralized finance ecosystem on the Nervos blockchain.”
Nervos co-founder Terry Tai believes access to oracles is an essential part of not just building dApps but also creating a truly interconnected blockchain ecosystem.
“Through our integration with Band Protocol, we’re not only giving our developers access to vital oracle data to build scalable decentralized applications on Nervos but also enabling them to contribute to the greater ecosystem, where scalability and interoperability will play a key role in blockchain growth.”
As we move further along in the integration, we’ll release more updates.
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