Umbrella Network Announces New Launch: Decentralized Oracles On Ethereum Mainnet
04 October 2021 - 1:00AM
NEWSBTC
Umbrella Network, the decentralized Layer-2 oracle solution, has
officially launched on Ethereum Mainnet. The company made
this announcement on its blog on Friday. Umbrella
Network is a community-owned Layer-2 oracle network that
batches data for providing low-cost, scalable, and secure data. It
utilizes the advances in Merkle tree technology to write multiple
data points on a single on-chain transaction, making batching data
to smart contracts more accurate and cost-effective. Umbrella
network believes a community-owned oracle solution is essential to
creating a truly decentralized financial system. Blockchain Oracles
Explained Most blockchains have cryptocurrencies that are used to
transfer value and enable the operations of the protocol. Some
blockchains also enable Smart contracts. According
to Wikipedia, a smart contract is a computer program or a
transaction protocol that is intended to automatically execute,
control, or document legally relevant events and actions according
to the terms of a contract or an agreement. The objectives of smart
contracts are the reduction of need in trusted intermediates,
arbitrations, and enforcement costs, fraud losses, as well as the
reduction of malicious and accidental exceptions. Related Reading
| DOTOracle – Rendering Decentralized Solutions to Polkadot
and its Ecosystem However, there needs to be a way for blockchains
and on-chain smart contracts to make use of external, off-chain
data for smart contracts to have any real-world applications.
Ethereum.org clearly defines what an oracle is, the oracle problem,
and how decentralized oracles solve it. “An oracle is a bridge
between the blockchain and the real world. They act as on-chain
APIs you can query to get information into your smart contracts.
This could be anything from price information to weather reports.
Oracles can also be bi-directional, used to “send” data out to the
real world.” Blockchain (e.g. Ethereum) transactions cannot access
off-chain data directly. At the same time, relying on a single
source of truth to provide data is insecure and invalidates the
decentralization of a smart contract. This is known as the oracle
problem. This oracle problem can be avoided by using a
decentralized oracle that pulls from multiple data sources; if one
data source is hacked or fails, the smart contract will still
function as intended. Related Reading | Decentralized Oracle
Plugin Offers Solution for XinFin’s Smart Contract Umbrella Network
claims its decentralized network is a superior solution to its
competitors. It provides comparatively quick and affordable price
feeds. It also says that it would make available more data pairs
(currently 1,200 data pairs growing to over 10,000 by end of 2021)
than any other oracle in the ecosystem. According to Cointelegraph,
the need for reliable data feeds appears to be growing as smart
contract technology becomes more mainstream. For example, Brazil’s
main stock exchange is exploring ways to provide data inputs for
the country’s central bank digital currency (CBDC) project.
Umbrella Network Mainnet Launch On Ethereum Umbrella Network’s
mainnet launch on Ethereum means that it deployed Smart contracts
on the Ethereum Blockchain. This means that Ethereum-based dApps
can communicate with Umbrella Network code in the live environment
— requesting and getting data that is reliable, comprehensive, and
cost-effective. ETH price at $3,431 | Source: ETHUSD on
TradingView.com Speaking on the mainnet launch, founding partner
Sam Kim said, “We are absolutely thrilled to be able to achieve
this important milestone. We will now be able to serve the needs of
the largest DeFi community with our decentralized oracles, and look
to address real challenges the community faces when it comes to the
high cost, low availability of data offerings in the ecosystem
today.” The company has been busy with acquisitions and new
products in recent months. In May, the network launched on Binance
Smart Chain (BSC) mainnet. Umbrella network also stated its plans
for future cross-chain integration with Polygon, Solana, Cardano,
and Avalanche, in the coming months. In the same breath, it
mentioned the launch of its in-house developed Token Bridge next
week. This enables seamless transfers of $UMB across all supported
Blockchains. Featured image by @UmbNetwork on Twitter, Chart from
TradingView.com
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024