Skip to main content

Tunnel Architecture

Overview​

The Data Tunnel serves as a critical bridge for relaying price data from a concurrent price stream to decentralized applications. It ensures seamless interoperability between various blockchain networks, including Cosmos SDK applications, L1/L2+ EVM contracts, and non-EVM contracts.

[waiting-for-image]

Components​

1. Concurrent Price Stream​

The Concurrent Price Stream is responsible for obtaining real-time pricing data from validators. This data is then fed into the Data Tunnel for further processing and transmission.

  • Functionality: Fetches live price updates
  • Interaction: Sends price data to the Data Tunnel

2. Data Tunnel​

The Data Tunnel serves as the main process for producing tunnel packets data. It is responsible for:

  • Collecting price information from the Concurrent Price Stream
  • Producing packets from the tunnel based on interval and the price deviation triggering condition
  • Formatting and packaging data into packets based on tunnel route
  • Sending structured packets into the Data Tunnel Routes

3. Data Tunnel Routes​

The Data Tunnel Routes consist of multiple interoperability mechanisms that facilitate secure and efficient data transmission to send tunnel packets to decentralized applications. These mechanisms include:

  • Threshold Signature Scheme: Ensures cryptographic security for transactions to send it to decentralized applications.
  • IBC (Inter-Blockchain Communication Protocol): Provides communication between different Cosmos-based blockchains.
  • IBC Hook: Extends IBC functionalities, allowing customized interactions with WASM contracts on Cosmos-based blockchains.
  • Router Protocol: First blockchain interoperability platform that supports Band Data Tunnel.
  • Other Interoperability Protocols: Additional methods that enhance cross-chain compatibility in the future.

4. Decentralized Applications​

Once the data is processed and routed, it is relayed to various decentralized applications, including:

  • Cosmos SDK Applications: Applications built on Cosmos that rely on accurate price feeds.
  • L1/L2+ EVM Contracts: Smart contracts deployed on Ethereum and other EVM-compatible networks.
  • Non-EVM Contracts: Contracts on blockchains that do not use the Ethereum Virtual Machine.

Data Flow Summary​

  1. Price Data Retrieval: The Concurrent Price Stream fetches price information.
  2. Processing: The Data Tunnel processes and formats price data into structured packets.
  3. Routing: The Data Tunnel Routes use interoperability mechanisms based on the tunnel creator's choice to relay data securely.
  4. Delivery: The processed data is sent to decentralized applications for execution.