Band Protocol vs Theta Network vs Elrond Network vs TOP Network
The crypto space is going through a seismic shift right now. Several high-value projects are coming out all over the world. Chief among these projects are Band Protocol, Theta Network, Elrond Network, and TOP Network. Not only are these projects backed by solid fundamentals, but they also have a brilliant team working behind the scenes. Many believe that these four projects are well poised to take over the market and dominate the headlines for years to come.
In this article, we will be analyzing these coins and see what makes them the altcoins to look out for in the future.
- USP: Blockchain Oracles
- Ticker: BAND
Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Band pulls in data from multiple external sources, aggregates, and packages them into an easy-to-use format that’s verified efficiently across multiple blockchains.
The need for Oracles
Oracles are a powerful tool that blockchains are currently using to increase interoperability. Smart contracts are supposed to be deterministic and irreversible. This is why the information that’s getting fed into the contracts needs to come from a trusted source.
An oracle fills up the role of this trusted source. It signs up claims about the state of the world and uploads it to the blockchain. The information included in these states is external data feed points such as price feeds, inter-chain communications, real-world events, and external web API interactions.
How do Oracles work?
- Alice and Bob place a bet on who is going to win the English Premier League
- Alice bets on Manchester United while Bob is betting on Liverpool.
- After agreeing on the payouts, they sign the deal by locking up their funds in a smart contract. The smart contract releases funds to the winner based on the results.
- The smart contract is connected to an oracle that gives it relevant information it needs for decision-making. Without the oracle, the smart contracts will have no way to know who the winner is.
- The Oracle queries trusted APIs and relay accurate information to the smart contract. Depending on the result, the smart contract triggers the appropriate action.
Band Protocol vs existing oracles
Current decentralized oracle networks are not really the most efficient systems out there. Every dApp that requires the same info from the oracles will have to perform redundant data queries.
Band Protocol provides decentralized data management that can serve synchronous data to any decentralized application within a single transaction. Any decentralized applications can query the same information already live in the blockchain. The BandChain is also compatible with most smart contract and blockchain development frameworks.
Band Protocol’s advantage
Band Protocol’s flexible oracle design allows developers to use any data, including real-world events, sports, weather, random numbers, and more. Developers can create custom-made oracles using WebAssembly to connect smart contracts with traditional web APIs within minutes.
BAND/USDT daily price chart
The daily BAND/USDT chart has had three straight bullish sessions, wherein it went up from 1.0197 to 1.367. In the process, they managed to jump above the SMA 20 and SMA 50 curves. The moving average convergence/divergence (MACD) indicates increasing bullish market momentum. BAND/USDT bulls will want to aim for the 1.4 and 1.5 resistance levels to continue the upward momentum.
- USP: Decentralized video delivery
- Ticker: THETA
Theta is a decentralized video content delivery network that economically incentivizes its users to share bandwidth. It does so by providing a P2P mesh network and creates an incentive layer by using a blockchain.
The current problem
The existing video delivery networks suffer from poor reach and a high-cost setup. In the current infrastructure, video propagation happens via Content Delivery Networks (CDN). The idea is to have data packets ricochet off different datacenters, aka Point-of-Presence (POPs), between the source and the receiver. However, this design has several problems:
- Poor reach: The quality of video transmission is dependent entirely on your geographical distance from the POPs. Unfortunately, the number of POPs is minimal, so the quality of video delivery can be extremely inconsistent.
- Centralization: The quality-of-service is completely dependent on the data-centers. Plus, operations can get very expensive for the service provider.
The Theta solution
Theta solves this problem by creating a P2P network of users who share their network bandwidth and act as a decentralized CDN. The users’ device acts as a caching node that stores video data. Caching makes sure that video data packets don’t need to travel as far. Nodes that provide this service will be rewarded with Theta tokens.
The advantages of this approach are as follows:
- Reduce overall delivery costs by 80% since the system will no longer be dependent on maintaining huge datacenters.
- The blockchain acts as an immutable consensus layer for payments and rewards.
THETA/USDT daily price chart
THETA/USDT is trending in a downward channel formation after it charted a high of 0.40 on 27th May 2020. The price has bounced up from the 0.21167 support line and is presently negotiating with the 0.264 resistance level.
- USP: Scalable decentralized platform
- Ticker: ERD
Elrond Network is the second IEO (Initial Exchange Offering) to go live on the Binance Launchpad. It offers a decentralized network that has the same scalability and security afforded by a centralized network. Elrond plans on achieving these goals via Adaptive State Sharding, and Secure Proof of Stake consensus mechanism.
Elrond has some lofty design goals. Thankfully they have a brilliant team of people who have previously worked at Google, Microsoft, Intel, and the NEM blockchain platform. Let’s now look at how Elrond plans on providing full scalability and interoperability.
- Provide adaptive state sharding by combining the three existing versions of sharding — network/communication, transaction/processing, and state/storage.
- Elrond’s secure proof-of-stake (SPOS) mechanism brings in fairness to the original POS protocol by integrating stake and ratings.
- Elrond brings in cross-chain interoperability along with decentralization. It plans on achieving this goal by promoting unlimited communication between various external services via the Elrond Virtual Machine (EVM).
- Elrond allows users to make secure transactions between Elrond, Ethereum, and ERC20 tokens without depending on centralized exchanges.
The Elrond Architecture
The following are the individual components of Elrond’s architecture:
- User and nodes: The users are in charge of deploying signed transactions for value transfers and smart contracts execution. The devices that these users use become nodes of the overall network.
- Validators: These are in charge of the overall network upkeep. Validator nodes are in charge of various operations, such as consensus building, block generation, and state maintenance.
- Shards: Fragmented components of the blockchain state.
- ERD tokens: The native tokens that act as a gateway into the Elrond Network. A percentage of transaction fees are kept for validators.
ERD/USDT daily price chart
ERD/USDT has climbed steadily before encountering resistance at 0.008407. Two indicators show that ERD/USDT is currently overvalued and further price drop can be expected:
- The price is trending above the 20-day Bollinger Band.
- The RSI is hovering inside the overbought zone around 75.35.
- USP: 4th-Gen Blockchain leader
- Ticker: TOP
TOP Network is a 4th-generation, decentralized, open cloud communications network powered by blockchain technology. TOP Network offers low-cost, privacy-preserving, and secure cloud communications services such as messaging, calling, VPN, CDN, IoT data sharing, and more. At its core lies the TOP blockchain, which is the world’s first fully sharded, entirely permissionless public chain providing high TPS, near-instant confirmation times, and low to zero transaction fees.
There are several innovations that TOP uses to power its whole ecosystem:
- Three-layer network architecture.
- pBFT-POS* (practical Byzantine Fault Tolerance with comprehensive proof-of-stake).
- Two-layer Block-Lattice DAG structure.
Layer 0 vs Layer 1 vs Layer 2
TOP Network’s main USP lies in its innovative layer architecture.
- Layer-0: This is the very base P2P network of the protocol. The standard p2p network design is no longer good enough to accommodate for sharding and large-scale adoption. TOP Network brings in innovative Kademlia redesigns along with geographical clustering and smart routing to make the layer-0 as optimal as possible.
- Layer-1: TOP achieves layer-1 scalability with full-state sharding. The TOP chain is broken down into shards, and each shard is divided into sub-groups. Physical nodes within these sub-groups can be virtualized to multiple types of nodes, and use multiple cores/threads to process transactions in parallel.
- Layer-2: Layer-2 scalability is achieved via use-case specific, pluggable, built-in, one-way state channels called “service chains.”
Along with the all-round scalability, TOP also uses an innovative pBFT-POS* consensus mechanism. The overall consensus is achieved with the practical Byzantine Fault Tolerant (pBFT) algorithm. The networks is secured via POS* or comprehensive staking, which mitigates the problems of traditional POS.
Comprehensive staking considers the following four aspects while whitelisting a node as a potential validator.
- The node must have the basic computational power to join the network and participate in network upkeep.
- The node must have good network capabilities.
- The node must lock up their tokens for a predetermined amount of time.
- The node must have a history of doing credible work and positively contribute to the network.
If all these conditions are met, then and only then will the node be accepted as a TOP validator.
Public Utility and Developer Friendly
The TOP team has previously worked on a variety of apps like Dingtone, CoverMe, and SkyVPN. These apps have a combined >100 million users overseas. These users will be migrated onto TOP’s blockchain in stages. What this means is that developers who create apps on top of the TOP chain will be able to showcase their apps to millions of users. This is unprecedented in the blockchain space! Plus, TOP comes in with frameworks for various communication applications that will allow developers to build their comm dApps with ease.
TOP/USDT daily price chart
TOP/USDT has been trending horizontally around 0.002049 before it jumped and encountered resistance at the 0.00238 resistance line. The price is currently consolidating inside the pennant formation.
The moving average convergence/divergence (MACD) shows that that market momentum is about to reverse from bearish to bullish, so further uptick is expected. It should also be noted that TOP has the highest upside potential among these four coins because:
- It presently has the least market cap among the four.
- It has the most amount of mainstream application (disrupting communication services and social media).
- It has the user advantage that the other projects simply don’t have.
As you can see, these four projects have positioned themselves to conquer the decentralized space soon. Currently, TOP Network has a slight edge over its peers due to the upcoming user-onboarding. However, we can’t count out any of these projects. Let’s hope that healthy competition will drive these four to sprint ahead of the rest of the pack.