Band is one of Chianlink’s main competitors in the field of oracles powered by Cosmos technology. In a recent interview with Cointelegraph, Surviz Srinavakon, CEO of Band Protocol, said:
If you look at Chainlink, a data request can now take around $ 450 because someone needs to send the request data in order to request data. Let’s say 20 data providers have to get it, respond to 20 transactions, and then collect contracts to do all the calculations before returning the final result, all of which requires a lot of gas. ”
Srinawakoon also provided a link to the Chainlink Ethereum (ETH) contract in support of their claim. If we look at a recent interaction with the same contract, the price turns out to be higher at $ 563.74. We asked Chen Link to respond to these allegations, a spokesman told Cointelegraph:
Links do not refer to a request from a user trying to access the channel. This is the total cost of multiple Oracle nodes creating a concise update shared by multiple users during an extremely high gas tax period that is unique and atypical.
They also added that this demonstrates that Chainlink can operate successfully “even in times of high gas prices and high gas taxes” and “We are currently finalizing <...> the implementation of threshold signatures. This solution definitely cuts some costs, the oracle network runs on 1500X. ”
Srinavakun believes the lower fees are just one of the Band’s advantages over its main competitor, plus he notes greater compatibility (he mentioned that Band’s oracles are already available on Waves, TRON (TRX) and ICON) and decentralization.
Srinavakun said that decentralized incentives have been included in the scope of the protocol team. Data providers have to bid on tokens (and they are currently hosting $ 500-600 million worth of tokens, he says), which also means that if they misbehave, they could be punished financially. This is similar to how the oracles created by EMURGO and ERGO for the Cardano ecosystem to work.
Srinavakun acknowledged that Chainlink has dominated the Ethereruem ecosystem so far, but said this will change soon:
And if you’ve seen Band before, we were actually very vulnerable in the Ethereum ecosystem because Chainlink dominated this space. <...> I think this will be the beginning of our real entry into the Ethereum ecosystem, and we also worked hard on DeFi on top of Ethereum. ”
A Chainlink spokesperson told Cointelegraph that there are good reasons why Band has not achieved a similar level of success on the Ethereum network:
Compared to Band, it’s also important to note that it took up to 5 days on Ethereum without updating price data, which means the data was out of sync with reality. This is one of the many reasons why, when using Ethereum, no direct user wanted to connect to the security group oracles on the Ethereum network.
The DeFi Chamber has grown by leaps and bounds this year, driving up Ether prices and creating demand for unauthorized data providers like Chainlink and Band. However, as Ethereum fuel prices rise, the competition between Oracle suppliers also increases.