Decentralized oracle service Umbrella Network has launched on the Ethereum platform, enabling cross-chain transactions between Binance Smart Chain (BSC) and Ethereum platform.
It has also allowed users to stake and farm cryptocurrency tokens on the Ethereum blockchain through the cross-chain bridging. 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, no time limit was provided for the integration.
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Umbrella also stated that 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, as well as from spot cryptocurrencies.
Increased Demand For Dependable Data Inputs
Oracle is seen in the industry as an important component for smart contracts because they offer accurate data feeds from different sources, enabling them to increase their area of activity.
The demand for dependable data inputs has surged in recent times as the industry keeps embracing smart contract technology. Some jurisdictions are looking to provide more data for users. For instance, the primary stock market in Brazil is looking for ways it can supply data as the country looks to develop its central bank digital currency.
DeFi protocols have also shown their readiness to integrate data oracles top oracle provider Chainlink (LINK/USD), after launching on Ethereum’s layer-two scaling solution, has cemented its place in the market. Other protocols are also increasing their interests.
Smart contracts are increasingly turning into a data-intensive industry. The Oracle services are helping to close the gap.
Umbrella To Leverage Ethereum’s Capabilities
Umbrella Network developed the cross-chain bridge which underscored the need to transfer cryptocurrencies and other digital assets between smart contracts and the Ethereum platform. Presently, Umbrella has more than 1,200 data pairs on Ethereum.
The 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 factory designs pioneered by Balancer and Uniswap’s token functionality.
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