Chainlink and Band Protocol: Top Two Decentralized Oracle Projects

With both LINK and BAND both just setting new all-time highs, it seemed like a good time to take a closer look at the competition between two most successful decentralized oracle projects in the crypto space—Chainlink and Band Protocol.

But before we start, it is important to understand the problem that both of these projects are trying to solve.

Many non-trivial smart contracts need communication with external systems, e.g. to access off-chain data (such as price feeds, weather information, information about real-world events such as elections, and random numbers) and APIs. Unfortunately, the blockchain platforms these smart contracts run on cannot natively offer this kind of functionality (i.e. external connectivity). Smart contracts could turn to centralized oracles for help, but using a single node results in a single point of failure. That’s why we need decentralized oracle networks.

For the remainder of this article, please note that we will make heavy use of material found on these two projects’ websites and in their white papers, as well as pricing data from CryptoCompare, miscellaneous information taken from the reports on these two decentralized oracle projects by Binance Research, and on-chain analytics as provided by IntoTheBlock.

Chainlink (LINK)

I. Description

Here is how Binance Research describes Chainlink:

“Chainlink Network (LINK) aims to provide tamper-proof inputs and outputs of data for smart contracts on any blockchain.

“An individual can receive on-chain and off-chain data by connecting his smart contracts to various data sources and third-party APIs. One can also send data to parties outside of the blockchain she uses via the Chainlink Network.

“Chainlink’s Meta Oracle provides data aggregation and reaction services, which enables developers to further improve the functionalities of their smart contracts.

“The Chainlink token (LINK) is an ERC-677 token used as the payment for all services the Chainlink Network provides.”

II. Key Metrics for the LINK Token

• Reported Market Cap: $3,493,350,000

• Circulating Supply: 350,000,000 LINK

• Total Supply: 1,000,000,000 LINK

• Return on Investment (ROI) for Year-to-Date (YTD) Period: +467.10 (vs. USD)

III. On-Chain Metrics

IV. Development Activity

Band Protocol (BAND)

I. Description

Here is how the Band Protocol team describe what they have created: “a cross-chain data oracle
platform that aggregates and connects real-world data and APIs to smart contracts.”

II. Key Metrics for the BAND Token

• Reported Market Cap: $166,534,512

• Circulating Supply: 20,494,033 BAND

• Total Supply: 100,000,000 BAND

• Return on Investment (ROI) for Year-to-Date (YTD) Period: +3552.13% (vs. USD)

III. On-Chain Metrics

IV. Development Activity

Featured Image: Forbes

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