The decentralized Oracle Umbrella Network service was launched on the Ethereum platform, enabling cross-chain transactions between Binance Smart Chain (BSC) and the Ethereum platform.
It also allowed users to stake and farm cryptocurrency tokens on the Ethereum blockchain through the cross-chain bridge. The company also noted that it is in the process of enabling cross-chain connectivity with Cardano (ADA / USD), Solana (SOL / USD), Polygon (MATIC / USD), and Avalanche (AVAX / USD). However, there is no time limit for integration.
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Umbrella also said the protocol will offer a cheaper and faster price feed than its competitors. It will allow users to easily connect data from traditional financial markets, crypto derivatives and spot cryptocurrencies.
Increased demand for reliable data inputs
Oracle is seen in the industry as an important component for smart contracts because it offers accurate data feeds from multiple sources, enabling them to grow their area of business.
The demand for reliable data input has increased in recent times as the industry continues to embrace smart contract technology. Some jurisdictions are trying to provide more data for users. For example, the main stock market in Brazil is looking for ways to provide data as the country tries to develop its own central bank digital currency.
DeFi protocols also showed their willingness to integrate data oracles, the leading provider of Oracle Chainlink (LINK / USD), after launching on Ethereum’s level two scaling solution, cemented its place in the market. Other protocols are also raising their interests.
Smart contracts are increasingly turning into a data-intensive industry. Oracle services are helping to bridge the gap.
Umbrella leverages the capabilities of Ethereum
Umbrella Network developed the cross-chain bridge which emphasized the need to transfer cryptocurrencies and other digital assets between smart contracts and the Ethereum platform. Currently, Umbrella has more than 1,200 data pairs on Ethereum.
Recent exploits in the DeFi world have highlighted the need for new risk management solutions in the ecosystem. As a result, Umbrella says the plan is to leverage Ethereum’s unique capabilities and have balanced decentralized governance and immutability.
The protocol was designed to provide these possibilities, as it takes inspiration from the factory designs introduced by Balancer and the Uniswap token functionality.
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