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CEO of Band Protocol says that a single Chainlink data request costs $450

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INDIA

Sep, 25 2020

Sep, 25 2020

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Band is one of the Chainlink's main competitors in the oracle space based on Cosmos technology. 

 

InChainlink, one data request right now can take almost $450. This is because someone needs to submit the request data to ask for the data. Assume 20 data providers need to receive that. Respond to that with 20 transactions. So the aggregation contract to do all the computation before returning the final result. All of these require much gas.

 

When we examine a more recent interaction with the same contract, the cost appears to be even higher $563.74. 

 

These links do not reference a request from a user that is trying to access a feed. These are the costs for many oracle nodes making a feed update that is shared by many users. This is during a too-high gas fee period that is unique and atypical. 

 

This demonstrates that Chainlink can operate successfully, even in high gas and high gas-fee spikes. It shows that they are currently completing the implementation of Threshold signatures. The solution reduces individual costs for securely running an oracle network by as much as 1500X."

 

Low fees are only one of the advantages that Band holds over its main competitor. It additionally has greater interoperability. Band oracles are already available on Waves, TRON (TRX), and ICON) and decentralization.

All decentralized incentives are built into Band at the protocol layer. Data providers have to stake Band crypto tokens. They are currently staking $500-600 million worth of tokens, according to him. This also implies that if they misbehave, they could be punished financially. It is very similar to the way ERGO and EMURGO build oracles for the Cardano ecosystem function.

 

This DeFi space has grown by leaps and bounds this year. This has pushed the price of Ether and creating demand for oracalized data providers like Chainlink and Band. But, as Ethereum gas prices rise, the competition between oracle providers is heating up as well.


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