The umbrella network for a decentralized oracle service was officially launched on Ethereum on Friday, paving the way for cross-chain transactions between the dominant smart contract platform and Binance Smart Chain, or BSC.
The bridge between Ethereum and BSC was developed internally in the Umbrella Network, and emphasized the need to move tokens and other crypto assets between the two networks. Bridging also allows users to swap and combine cryptocurrencies on any of the blockchains. Umbrella has said it is planning future internet work with Polygon, Solana, Cardano and Avalanche, although no deadline has been set.
While the blockchain industry has created many oracle services, Umbrella claims that the protocol is faster to file and less expensive than its main competitors. Initially, the protocol will contain over 1200 Ethereum data pairs, so that users can combine data from spot cryptocurrencies, crypto derivatives and traditional financial markets.
Related topics: Brazilian stock exchange wants to introduce Oracle to digital reality
Oracles are an important component of smart contracts as they provide reliable data streams from external sources, thus improving operations. The need to provide reliable data seems to be increasing as smart contract technology becomes more widespread. Example: A large Brazilian stock exchange is investigating ways to deliver data for the country’s digital currency project to the central bank.
Protocols related to decentralized finance, or DeFi, have been interested in integrating the data oracle. Chainlink, Oracle’s dominant supplier, has established itself well in this niche, especially after the successful distribution of the Ethereum Arbitrum Layer 2 scaling solution in August.