Umbrella Network Hosted on Ethereum with Interoperable Bridge to Binance Smart Chain
It was announced on Friday that the Ethereum-based decentralized oracle service Umbrella Network has officially gone live, paving the way for cross-chain interactions between Ethereum’s popular smart contract platform and the Binance Smart Chain, also known as BSC.
Created in-house by Umbrella Network, the interoperable bridge linking Ethereum and BSC highlights the importance of transferring tokens and any other digital assets between the two blockchains and underscores the necessity for such transfers.
The cross-chain gateway also allows users to stake and farm cryptocurrency tokens on any of the blockchain, depending on their preference for doing so. Umbrella stated that it is considering potential interoperable chain connectivity with Polygon, Solana, Cardano, and Avalanche, but no specific timeline was provided.
When compared to the top rivals, Umbrella says that their covenant offers rapid and cheap pricing feeds, despite the fact that the blockchain sector has given rise to a slew of oracle solutions. Preliminary data pairings will number over 1,200 on the Ethereum blockchain, enabling users to incorporate information from spot cryptocurrencies, cryptocurrency derivatives, and conventional financial markets into a single application.
Oracles are regarded to be a core part of smart contracts since they offer trustworthy data inputs from various sources, allowing them to expand the range of their operations and increase their efficiency. When it comes to smart contracts, the requirement for dependable data flows seems to be increasing as the technology gets more widely used.
Example: The major stock market in Brazil is investigating the possibility of providing datasets for the country’s central bank’s digital currency (CBDC) initiative. Protocols associated with decentralized finance (DeFi), have shown an interest in including data oracles. Specifically after its effective hosting on Ethereum layer-two scaling solution Arbitrum in August, Chainlink, the leading oracle provider, has established a solid foothold in this market.