Band Protocol has selected Router Protocol as the first Data Tunnel provider for the upcoming Band v3 upgrade. The Data Tunnel is one of the three main components of Band v3, which aims to broadcast the accumulated price data from BandChain to other blockchains and smart contract platforms. This mechanism improves cross-chain communication and allows developers to easily access real-time decentralized asset prices.
The Data Tunnel leverages BandChain’s Concurrent Price Stream, enabling secure and cost-efficient transmission of price feeds. To provide cryptographic guarantees, the Data Tunnel employs the Threshold Signature Scheme (TSS) which reduces proof costs and maintains the security of the data relay. The feature enables the dissemination of price feeds across multiple ecosystems by leveraging the integrating functionality of compatible protocols such as Router.
Router Protocol’s Role in Band v3 Ecosystem
Router Protocol is the latest addition to the list of partners in the Band Protocol ecosystem and is a blockchain interoperability platform. router is a cross-chain messenger service which has a deep integration with the Cosmos SDK and CosmWasm. This interconnection allows for transition between BandChain and Router’s ecosystem through the implementation of IBC protocol.
Router Protocol will decrypt and forward the price feeds received from BandChain to other supported blockchains via Router. Thus, Router helps to manage safe and effective data transmission while allowing developers to receive dependable price data without additional integration difficulties. This partnership reflects Band Protocol’s goal of constructing a decentralized data infrastructure for the Web3 community.
Consequences for Developers and the Web3 Environment
Band Protocol and Router Protocol partnership is expected to benefit developers building decentralized applications (dApps). Router will now provide easy access to real time price data aggregated from Band v3, which is crucial for DeFi and other tokenized assets.
This partnership will also help drive the integration of Band Oracles on Router’s supported blockchains to advance the Web3 ecosystem. The recent introduction of Oracle functions in Band v2 will help developers create more secure and scalable cross-chain applications in the future when Band v3 is launched.
