Band is one of Chianlink’s main competitors in the oracle space that is based on Cosmos technology. In a recent Cointelegraph interview, Soravis Srinawakoon, the CEO of Band Protocol, said:
“If you look at Chainlink, one data request right now can take almost $450 because someone needs to submit the request data to ask for the data. Let’s say 20 data providers need to receive that, respond to that with 20 transactions, and then the aggregation contract to do all the computation before returning the final result, all of these require a lot of gas.”
Srinawakoon also provided a link to Chainlink’s Ethereum (ETH) contract to support his claim. If we examine a more recent interaction with the same contract, the cost appears to be even higher — $563.74. We asked Chainlink to respond to these claims, their spokesperson told Cointelegraph:
The links do not reference a request from a user that is trying to access a feed. These are the overall costs for multiple oracle nodes making a feed update that is shared by many users, during an extremely high gas fee period that is unique and atypical.
They also added that this demonstrates that Chainlink is able to operate successfully “even in times of high gas costs and high gas fee spikes” and “we are currently completing <…> implementation of Threshold signatures. This solution reduces certain costs for securely running an oracle network by as much as 1500X.”
Srinawakoon believes that low fees is only one of the advantages that Band holds over its main competitor, additionally noting greater interoperability (he mentioned that Band oracles are already available on Waves, TRON (TRX) and ICON) and decentralization.
Srinawakoon said that decentralized incentives are built into Band at the protocol layer. Data providers have to stake Band tokens (they are currently staking $500-600 million worth of tokens according to him), which also implies that if they misbehave, they could be punished financially. This is similar to…