Umbrella Network, a decentralized oracle service, recently launched on the Ethereum network, paving the way for cross-chain transactions between the Ethereum platform and Binance Smart Chain.
Umbrella Network built a cross-chain bridge connecting Ethereum and BSC in-house, highlighting the necessity to transfer tokens and other crypto assets between the two networks.
Users can also stake and farm crypto tokens on either blockchain via the cross-chain bridge. Umbrella stated that potential cross-chain connectivity with Polygon, Solana, Cardano, and Avalanche is in the works, but provided no timeline.
Despite the fact that the blockchain sector has given rise to a slew of oracle services, Umbrella says that its protocol provides faster and more inexpensive price feeds than its competitors.
Users will be able to connect data from spot cryptocurrencies, crypto derivatives, and traditional financial markets with the protocol’s first 1,200 data pairs on Ethereum.
Oracles are seen as a necessary component of smart contracts since they provide accurate data feeds from other sources, allowing them to expand their area of activity.
As smart contract technology becomes more prevalent, the demand for dependable data inputs looks to be increasing. For example, Brazil’s primary stock market is looking into ways to supply data to the country’s central bank’s digital currency project.
Decentralized financial protocols, or DeFi, have been eager to incorporate data oracles. Since its successful deployment on Ethereum layer-two scaling solution Arbitrum in August, Chainlink, the major oracle provider, has carved out a strong foothold in this market.