Band is one of Chainlink’s main competitors in the oracle space, which is based on Cosmos technology. In a recent interview on Cointelegraph, Soravis Srinawakoon, the CEO of Band Protocol said:
“If you look at Chainlink, a data request can cost almost $ 450 right now because someone has to send the request data to request the data. For example, suppose 20 data providers need to receive this, respond to it with 20 transactions, and then enter into the aggregation contract to do all the calculations before returning the final result. All of this requires a lot of gas. “
Srinawakoon also provided a link to Chainlink’s (ETH) Ethereum contract to support his statement.. If we examine a newer interaction with the same contract, the cost seems to be even higher: $ 563.74. We asked Chainlink to respond to these demands. His spokesman told Cointelegraph:
The links do not relate to a request from a user trying to access a feed. This is the overhead of multiple oracle nodes performing a feed update shared by many users during an extremely high gas pay period that is unique and atypical.
They added that too This shows that Chainlink can work successfully even in times of high gas costs and high gas rate peaks.“and” we are currently concluding <...> the implementation of threshold signatures. This solution reduces certain costs for the secure operation of an oracle network by up to 1500X “.
Srinawakoon believes the low fees are just one of the advantages the band has over its main competitor and that they are noticing greater interoperability (mentions that Band’s Oracle is now available on Waves, TRON (TRX) and ICON) and Decentralization.
Srinawakoon said that At the protocol level, decentralized incentives are integrated into tape. Data providers are required to use band tokens (according to him, they currently have between $ 500 million and $ 600 million in tokens), which also implies that they could face financial penalties for misbehaving. This is similar to how the oracles for the Cardano ecosystem built by EMURGO and ERGO work.
Srinawakoon admitted that so far Chainlink has dominated the Ethereruem ecosystem but said this will soon change::
“And if you look at Band beforehand, we were actually pretty weak in the Ethereum ecosystem because Chainlink dominated that area. <...> I think this will be the beginning of where we really get into the Ethereum ecosystem and we have worked with a lot of these greats
DeFi on Ethereum too . “
A Chainlink spokesman told Cointelegraph that There are profound reasons why Band didn’t have similar success on the Ethereum network.::
Compared to tape, it’s also important to note that your Ethereum instance had up to 5 days with no price data updated, which means the data was dangerously out of sync with reality. This is one of the many reasons why there wasn’t a single live user on Ethereum willing to tie their security to bands oracles on the Ethereum network.
The DeFi space has grown by leaps and bounds this yearThis increases the price of ether and creates a demand for localized data providers like Chainlink and Band. However, With Ethereum’s gas prices rising, competition between oracle providers is also intensifying.