Umbrella Network, a decentralized oracle service, was officially launched on Ethereum, setting the stage for cross-chain transactions between the dominant smart contract platform and Binance Smart Chain, or BSC.
The cross-chain bridge connecting Ethereum and BSC was developed internally at Umbrella Network, emphasizing the need to transfer tokens and other crypto assets between the two networks. The cross-chain bridge also allows users to stake and farm tokens on both blockchains. Umbrella said he is also planning future cross-chain integrations with Polygon, Solana, Cardano and Avalanche, though no exact date has been revealed.
Although several oracle services already exist in the blockchain industry, Umbrella says its protocol provides fast and affordable pricing feeds compared to major competitors. Initially, the protocol will contain data on over 1,200 pairs on Ethereum, allowing users to interact with information from both spot and derivative markets, as well as traditional finance.
Oracles are considered an essential component of smart contracts, as they provide reliable data feeds from external sources, thus expanding the scope of their operations. The need for reliable data feeds increases as smart contract technology becomes more widespread. Case in point: Brazil’s leading stock exchange is exploring ways to provide data input for the country’s CBDC project.
Decentralized Finance (DeFi) protocols were among the first to need Oracle’s integration. In August Chainlink, the dominant oracle provider, carved out a strong presence in this niche, especially after its successful integration on Arbitrum, a Layer-2 scalability solution on Ethereum.