Umbrella Network, a decentralized, community owned, layer 2 data oracle which launched November of last year on the Ethereum blockchain, has announced they are migrating their services to the Binance Smart Chain. This is welcome news to fans of decentralized finance on Binance Smart Chain, as there is a need for more reliable and affordable providers of data.
Umbrella Network, the community owned and Delegated Proof of Stake oracle with over 1,000 data pairs, decided to bring their oracle to Binance Smart Chain for a multitude of reasons, the greatest of which being expedited transaction times and operational affordability. Higher transaction costs and confirmation times make it difficult to achieve their goal of being a community owned and operated oracle that provides data at the lowest cost.
There’s a high probability that you’re scratching your head right now, asking yourself, “what in the non-fungible token is an oracle?!”
Please, allow me to explain.
On a platform like Ethereum or Binance Smart Chain, smart contracts are given the ability to execute code BUT have extremely limited access to the outside world. This is where oracles come into play. They are able to access data from the outside world (such as the cost of a barrel of oil or a BNB token) and provide that data to the blockchain.
Many believe the purpose of a blockchain is to help us achieve freedom and provide accessibility of different assets, such as money and/or data, without requiring trust of a central third party that could corrupt or censor the information.
Using the technological achievement known as the blockchain, decentralized finance has enabled investors to take control of their own investments and data. It’s important to note this important fact: Without oracles, there is no DeFi. Oracles are the backbone of decentralized finance, allowing the smart contract platforms to conduct transactions based on dynamically changing data that blockchains do not provide on their own.
Umbrella Network found that the cost to be a validator on the Ethereum network could approach upwards of $16,000 per day based on the amount of transactions required. On the contrary, the cost to achieve the same results on Binance Smart Chain was 99% less. Savings of that significance allow Umbrella Network to put more control and ownership of the platform into the hands of its community while simultaneously increasing the number of validators providing data on the Umbrella Network. Anytime you can reduce operational costs by 99% AND provide a superior product, a phenomenon that is known by experts as “a massive win” occurs.
Umbrella Network has achieved staggering results since launching a mere 6 months ago. Their February IDO token launch on Polkastarter ended up receiving 110,000 applications for just 1000 whitelist applications, becoming Polkastarter’s most oversubscribed project at the time. They have grown their token UMB to a market cap of over $33 million, and a fully diluted market cap of over $350 million, while increasing their data pair offerings to over a thousand.
Founder, Sam Kim, leads the team at Umbrella Network, which consists of 15+ execution-focused technologists and engineers. Sam Kim is the visionary responsible for creating Lucidity; another company that uses blockchain technology and processes hundreds of thousands of transactions using a layer 2 side chain for the digital advertising industry. Umbrella has already caught the attention of some big players in the venture capital world such as CMS, Spark Capital, MoonWhale, and Kyros, among others.
To celebrate the launch of Umbrella Network on Binance Smart Chain, Umbrella is dedicating the month of May 2021 as “BSC Month”. Throughout the month, Umbrella will be announcing exciting new partnerships and opportunities. Be sure to visit their website and social media accounts to stay apprised. The new kid’s in town and you’re not gonna want to miss a thing.
You can find more information on their website at: https://umb.network/