Band Protocol Launches Private Oracle on COTI Network

Last year, we announced that COTI had partnered with Band Protocol: a decentralized oracle platform set to be deployed on the COTI L2. We’re pleased to announce that today the protocol goes live on COTI’s Testnet.

The collaboration is a great use case for COTI’s advanced privacy layer, utilizing the advantages of Privacy-on-Demand, a critical element of the Web3 ecosystem. In this article, we’ll reveal more details about the partnership, and why it matters.

Band Protocol: An Open, Cross-Chain Oracle For Everyone

Band Protocol is an open data oracle network designed to connect the real world to Web3 services. It enables the free movement of data from around the Web3 ecosystem, including on popular EVM and non-EVM chains. Secured through an innovative tokenomics design and robust governance, Band facilitates the operation of DeFi dApps, predictions markets, and blockchain-based games that need to pull data from external sources, helping secure billions of dollars of on-chain value.

Band’s mission to enable data to flow between a wide range of blockchain ecosystems, aligns well with COTI’s vision of an open, cross-chain, privacy-focused future for Web3.

“Sharing a common vision of a decentralized and scalable financial future, Band Protocol is excited to provide open and decentralized data oracles to COTI developers, empowering them to build more secure, scalable, and privacy-focused blockchain applications.” — Shine Sutheeravet, Head of Operations at Band Protocol

Band will soon be launching their Band V3 Mainnet, an upgrade that will deliver a faster, cheaper oracle service capable of high throughput, providing a more efficient and accessible product for developers and users. The team recently rolled out the Band V3 Testnet Phase 1, a production-ready service designed to allow validators and developers to interact with and explore the platform, and to provide feedback before its mainnet launch at the end of Q2 this year.

Developers on COTI can already access Band’s price feed for major tickers, including $COTI, $BTC, $ETH, and $USDC. Projects can customize these real-time, tamper-proof price feeds by adjusting update frequency and deviation thresholds to balance efficiency and accuracy based on specific application needs. Band is already seeing significant adoption on COTI by Bancor, which has used the protocol to power its Carbon DeFi platform.

What Are Oracles?

Oracles are services that provide secure and ideally decentralized streams of data, posting external information to the blockchain for dApps to use. An increasing number of dApps rely on oracles to access crucial real-world data — meaning their security and reliability has never been more important.

However, by design, blockchains exist within their self-contained siloes and cannot access data from the outside world. Their security model relies on a set of validators — miners or stakers — which follow a specific set of agreed rules about the way the network operates. Validators must reach consensus with each other to add a transaction to the blockchain.

Validators do not access information from third-party sources, like external websites. Introducing such external data from centralized sources would represent a single point of failure.

However, some decentralized applications (dApps) need this information — for example, market data, or the results of sporting events or political elections — to provide their services. This is where oracles step in, bridging the gap between blockchain networks and external data sources.

Why Privacy Matters

Privacy is a key concern for Band Protocol, for several reasons. Leveraging COTI’s garbled circuits allows the project to meet these needs:

• Security. Encrypting oracle data fees prevents data from being tampered with by malicious actors.
• Adoption. As COTI has always maintained, institutional participation requires secure, private, and compliant data processing to onboard at scale to Web3.
• Greater system reliability.

Band Protocol has already been deployed to COTI’s Enhanced Testnet and will be released on mainnet when it launches. The Band team is currently working with a series of integration partners to connect to multiple additional chains, as well as building new tools that allow developers to create price feeds in just a few clicks. To stay up to date with the latest developments, follow the project on X/Twitter.

Follow COTI on X/Twitter, join the Discord, and stay tuned for more partner updates as the team prepares for mainnet launch at the end of March!

For COTI updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

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Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io