Umbrella Network, the decentralized Layer-2 oracle solution, has officially launched on Ethereum Mainnet. The business made this statement on its blog site on Friday.
Umbrella Network is a community-owned Layer-2 oracle network that batches data for providing low-cost, scalable, and secure data. It makes use of the advances in Merkle tree innovation to compose numerous information points on a single on-chain deal, making batching information to smart agreements more precise and affordable. 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 utilized to move worth and allow the operations of the procedure. Some blockchains likewise allow Smart agreements.
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 goals of smart agreements are the decrease of requirement in relied on intermediates, arbitrations, and enforcement expenses, scams losses, in addition to the decrease of destructive and unintentional exceptions.
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 plainly specifies what an oracle is, the oracle issue, and how decentralized oracles resolve 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) deals cannot access off-chain information straight. t 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 issue can be prevented by utilizing a decentralized oracle that pulls from numerous information sources; if one information source is hacked or stops working, the smart contract will still work as planned.
Umbrella Network claims its decentralized network is a superior solution to its competitors. It offers relatively fast and economical rate 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 requirement for trusted information feeds seems growing as smart contract innovation ends up being 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 suggests that it released Smart agreements 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.
Speaking on the mainnet launch, establishing partner Sam Kim stated, “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 business has actually been hectic with acquisitions and brand-new items in current months. In May, the network introduced 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 exact same breath, it pointed out the launch of its internal established Token Bridge next week. This enables seamless transfers of $UMB across all supported Blockchains.
