The decentralized Oracle service umbrella network was officially launched at Etherium on Friday, setting the stage for cross-chain transactions between the influential smart contract platform and the Benson Smart Chain or BSC.
The cross-chain bridge connecting Ethereum and BSC was built internally into an umbrella network, highlighting the need to transfer tokens and other crypto resources between the two networks. Cross-chain bridge enables users to share and farm crypto tokens in blockchain. Umbrella said it plans to cross-chain integrate with Polygon, Solana, Cardano and Snow in the future, although no schedule has been given.
Although the blockchain industry has spawned several Oracle services, Umbrella claims that its protocols provide fast and affordable feeds compared to major competitors. Initially, the protocol will contain more than 1,200 data pairs in Ethereum, which will allow users to integrate data from spot cryptocurrencies, crypto derivatives and traditional theatrical financial markets.
Related: The Brazilian stock exchange wants to supply Oracle for digital real
Oracles are considered an essential component of the smart contract because they provide reliable data feeds from external sources, which expands the scope of their activities. The need for reliable data feeds seems to be growing as smart contract technology becomes more mainstream. For example: Brazil’s main stock exchange is looking for ways to provide data input for the country’s central bank’s digital currency project.
Protocols linked to decentralized finance, or DFI, were interested in integrating data oracles. Influential Oracle provider chainlink has made a strong presence in this niche, especially since the successful deployment of the Ethereum Layer-to-Scaling Solution in Arbitra in August.