Band Protocol Upgrades BandChain Network to Phase Two: Unleashing the Next Generation of Decentralized Data

The blockchain world is constantly evolving, and staying ahead of the curve requires continuous innovation and improvement. Band Protocol, a leading cross-chain data oracle provider, understands this imperative and has recently announced a significant milestone: the upgrade of its BandChain oracle blockchain to Phase Two. This upgrade, initially proposed in June 2025 and successfully launched on the mainnet in September 2025, marks a pivotal moment in the development of decentralized data oracles, promising enhanced performance, scalability, and functionality for the rapidly growing decentralized economy. The Phase Two upgrade, codenamed ""Laozi,"" isn't just a minor tweak; it's a comprehensive overhaul designed to improve every facet of the network, from data delivery to economic alignment among stakeholders. This includes data requestors (protocols, developers), validators and BAND token holders. But what exactly does this upgrade entail, and how will it impact the broader blockchain ecosystem? We'll dive into the details, exploring the key features of BandChain Phase Two and examining its potential to revolutionize how decentralized applications access and utilize real-world data. Get ready to explore the future of decentralized data with Band Protocol.

Band Protocol, the cross-chain data oracle provider, announced Tuesday that its BandChain oracle blockchain is in the process of upgrading to Phase Two. According to a press release provided to

What is BandChain Phase Two? A Deep Dive into the Upgrade

BandChain Phase Two, or ""Laozi,"" is a major upgrade to the Band Protocol's oracle network designed to deliver enhanced performance, new features, and improved economic incentives. Think of it as a significant software update for your computer, but instead of just fixing bugs, it introduces completely new capabilities and significantly boosts overall performance. This upgrade touches upon several key aspects of the network, including:

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• Increased Throughput: BandChain Phase Two aims to deliver a 10x increase in throughput, enabling the network to handle a significantly larger volume of data requests and transactions.
• Improved Scalability: By optimizing the mempool and other critical components, the upgrade enhances the network's ability to scale and accommodate future growth in demand.
• Streamlined Revenue for Data Providers: The Laozi upgrade introduces mechanisms for data providers to earn streamed revenue based on the usage of their data feeds, creating a more sustainable and economically viable model.
• Enhanced Interoperability: BandChain Phase Two incorporates Inter-Blockchain Communication (IBC) integrations, enabling seamless data exchange between BandChain and other blockchain networks.
• Optimized Transaction Handling: Improvements to how transactions are handled on BandChain, making the process more efficient and reliable.

In essence, BandChain Phase Two is a comprehensive effort to strengthen the Band Protocol's position as a leading provider of decentralized oracle services. But why is this upgrade so important?

Band Protocol upgrades BandChain network to phase 2. Open in App

The Importance of BandChain Phase Two: Powering the Decentralized Economy

The importance of BandChain Phase Two lies in its potential to unlock new possibilities for the decentralized economy. Oracles play a crucial role in bridging the gap between blockchains and the real world, providing smart contracts with access to external data sources. Without reliable and secure oracles, decentralized applications (dApps) would be limited to on-chain information, significantly restricting their functionality and potential use cases.

BandChain Phase Two addresses the critical need for robust and scalable oracle solutions, enabling developers to build more sophisticated and data-driven dApps. By delivering higher throughput, improved scalability, and enhanced interoperability, the upgrade paves the way for:

• More Complex DeFi Applications: Access to reliable real-world data enables the development of more sophisticated decentralized finance (DeFi) applications, such as advanced lending platforms, prediction markets, and insurance protocols.
• Enhanced Gaming Experiences: Oracles can be used to inject real-world events and data into blockchain-based games, creating more immersive and engaging experiences for players.
• Improved Supply Chain Management: By providing access to real-time data on product location, condition, and provenance, oracles can enhance the transparency and efficiency of supply chain management systems.
• Data-Driven Governance: Oracles can supply reliable data feeds for on-chain governance decisions, allowing blockchain communities to make more informed and data-driven choices.

Ultimately, BandChain Phase Two contributes to the growth and maturation of the decentralized economy by providing the infrastructure necessary to support a wider range of innovative applications. The upgrade also aligns incentives among data requestors, validators, and BAND token holders.

Key Features of BandChain Phase Two: A Detailed Breakdown

Let's delve deeper into some of the key features that make BandChain Phase Two such a significant upgrade.

10X Throughput: Handling the Growing Demand for Data

One of the most notable improvements in BandChain Phase Two is the 10x increase in throughput. This means the network can handle ten times more data requests and transactions per second compared to its previous iteration. This boost in throughput is crucial for accommodating the growing demand for oracle services as the decentralized economy expands.

Imagine a popular DeFi application that relies on Band Protocol to provide real-time price feeds for a large number of cryptocurrencies. With increased throughput, BandChain can efficiently handle the massive volume of price requests generated by the application, ensuring that users receive accurate and up-to-date information. This is particularly important during periods of high market volatility, when price feeds are in high demand.

Optimized Mempool: Enhancing Transaction Efficiency

The mempool is a critical component of any blockchain network, serving as a waiting area for pending transactions before they are included in a block. BandChain Phase Two introduces optimizations to the mempool, improving the efficiency with which transactions are processed and confirmed. These improvements are designed to reduce congestion and ensure that transactions are executed in a timely manner. This also includes custom mempool upgrades that enhance how transactions are handled.

Think of the mempool as the security line at an airport. The more efficiently the line is managed, the faster passengers can get through security and board their flights. Similarly, an optimized mempool ensures that transactions are quickly processed and confirmed on the BandChain network, reducing delays and improving the overall user experience.

Streamed Revenue for Data Providers: Incentivizing Data Quality

BandChain Phase Two introduces a novel mechanism for data providers to earn streamed revenue based on the usage of their data feeds. This innovative approach incentivizes data providers to maintain high-quality data feeds and ensure their availability. The more users rely on a particular data feed, the more revenue the provider earns.

This streamed revenue model creates a positive feedback loop, encouraging data providers to invest in their infrastructure and improve the accuracy and reliability of their data feeds. This, in turn, benefits the entire BandChain ecosystem by providing users with access to higher-quality data and greater confidence in the information they receive.

IBC Integrations: Connecting to the Broader Blockchain Ecosystem

Inter-Blockchain Communication (IBC) is a protocol that enables different blockchain networks to communicate and exchange data with each other. BandChain Phase Two incorporates IBC integrations, allowing BandChain to seamlessly exchange data with other IBC-enabled blockchains. This latest IBC version makes BandChain 2.4 even more connected.

This interoperability is crucial for enabling cross-chain applications and fostering greater collaboration within the blockchain ecosystem. For example, a DeFi application built on one blockchain could leverage BandChain's oracle services to access real-world data needed to power its functionality, even if that data originates on a different blockchain.

Addressing Common Questions About BandChain Phase Two

Let's address some common questions that users may have about BandChain Phase Two.

What are the benefits of upgrading to BandChain Phase Two?

The benefits of upgrading to BandChain Phase Two are numerous, including:

• Increased Throughput: Handle more data requests and transactions per second.
• Improved Scalability: Accommodate future growth in demand.
• Streamlined Revenue: Data providers earn streamed revenue based on usage.
• Enhanced Interoperability: Seamless data exchange with other blockchains.
• Greater Security: Improved network security and resilience.

How does BandChain Phase Two affect BAND token holders?

BandChain Phase Two is designed to benefit BAND token holders by increasing the demand for BAND tokens. As usage on BandChain increases, more protocol fees are accrued to validators and token holders, creating a positive feedback loop that enhances security and demand for BAND.

When was BandChain Phase Two launched?

The BandChain Phase 2 upgrade was successfully launched on the mainnet in September 2025.

How can I learn more about Band Protocol and BandChain?

You can learn more about Band Protocol and BandChain by visiting the official Band Protocol website, reading the project's whitepaper, and following the project's social media channels.

Real-World Examples of BandChain Phase Two in Action

To further illustrate the impact of BandChain Phase Two, let's consider some real-world examples of how it could be used in various applications.

• Decentralized Prediction Markets: Imagine a decentralized prediction market that allows users to bet on the outcome of real-world events, such as sports games or elections. BandChain Phase Two could provide the market with reliable and tamper-proof data on the results of these events, ensuring that payouts are accurately calculated and distributed.
• Decentralized Insurance Platforms: Decentralized insurance platforms can use BandChain Phase Two to access real-time data on weather conditions, crop yields, and other relevant factors to automate claims processing and reduce fraud. For example, a farmer could purchase a crop insurance policy that automatically pays out if rainfall falls below a certain threshold, as determined by BandChain's oracle services.
• Supply Chain Tracking: BandChain Phase Two can be integrated with IoT devices to track the location and condition of goods as they move through the supply chain. This allows businesses to monitor their inventory in real-time, prevent theft and spoilage, and improve overall efficiency.

These are just a few examples of the many ways in which BandChain Phase Two can be used to power innovative and data-driven applications. As the decentralized economy continues to grow, the demand for reliable and scalable oracle solutions will only increase, making BandChain Phase Two a crucial piece of infrastructure for the future of blockchain technology.

Band Protocol's Vision for the Future

Band Protocol's vision extends beyond just providing data; they aim to be the ultimate data bridge for everyone. This vision involves creating an open and accessible data oracle for all types of decentralized applications. With each upgrade, they are moving closer to realizing this goal, fostering a more connected and informed blockchain ecosystem.

The continuous improvement through iterations like Band Oracle v3 Testnet Phase 2.1, which focuses on optimizing the mempool, demonstrates their commitment to refinement and efficiency. The focus is on building a truly open data oracle for everyone. Band Protocol is excited to bring more data to the decentralized economy with BandChain Phase Two.

Conclusion: Embracing the Future of Decentralized Data with BandChain Phase Two

The upgrade of Band Protocol's BandChain network to Phase Two represents a significant leap forward in the development of decentralized oracle technology. By delivering increased throughput, improved scalability, streamlined revenue for data providers, and enhanced interoperability, BandChain Phase Two empowers developers to build more sophisticated and data-driven dApps. It also ensures that all stakeholders are economically aligned, creating a more secure and sustainable network.

As the decentralized economy continues to evolve, reliable and scalable oracle solutions will become increasingly critical for bridging the gap between blockchains and the real world. BandChain Phase Two is well-positioned to meet this growing demand and play a key role in shaping the future of decentralized data. By embracing this upgrade, developers, validators, and BAND token holders can contribute to a more robust, efficient, and interconnected blockchain ecosystem. Key takeaways include:

• BandChain Phase Two is a major upgrade focused on performance and scalability.
• It enhances interoperability with other blockchains through IBC integrations.
• It introduces a streamed revenue model for data providers, incentivizing quality.
• It aims to bring more data to the decentralized economy.

Now is the time to explore the potential of BandChain Phase Two and discover how it can help you build the next generation of decentralized applications. Explore the possibilities, contribute to the community, and embrace the future of decentralized data with Band Protocol. To start, consider exploring Band Protocol's documentation and participating in their community forums.