Umbrella Network reduces fees by migrating its oracle solution to Binance Smart Chain
Umbrella Network, a scalable and cost-efficient layer-2 oracle solution for blockchain and decentralized finance (DeFi) ecosystems, today announced that they are formally shifting their computations and consensus mechanics from Ethereum to Binance Smart Chain (BSC), the blockchain platform from crypto exchange company, Binance.
Working on BSC will empower Umbrella to update its data more frequently to provide the most current and accurate data possible to those using its network. This will offer blockchain developers the ability to access the data they need as cost-effectively as possible, and at scale so that they are further empowered to build the next generation of applications.
“Umbrella has always aimed to be a multi-chain project operating wherever the application developers are, and wherever the need for high-quality data is greatest. From our first product roadmap, we have planned to integrate into Binance Smart Chain, and based on that platform’s exploding ecosystem the timing for this integration couldn’t be better.”
– Sam Kim, Umbrella’s Founding Partner
Lowering Transaction Costs
Integrating with BSC offers Umbrella multiple advantages when compared to working on other platforms, including transaction fees that are over 90 percent lower than what is incurred on Ethereum.
For example, while the Ethereum transaction to get a data point on-chain might cost $50, that same transaction might only cost 50 cents via BSC. Those savings, in turn, can be passed onto users of Umbrella’s essential data feeds.
A vastly lower cost structure enables Umbrella to add more data points to its 1,000+ data pairs already available via the Umbrella Network. Lower operating costs on BSC will also allow Umbrella to move faster toward its goals of full decentralization by giving more members of the community the opportunity to participate as validators almost immediately.
Layer-2 Technology Solution
Umbrella’s solution is geared toward the DeFi ecosystem, connecting blockchain applications to data from the off-chain world in a uniquely secure and efficient way.
Moreover, Umbrella Network’s Merkle Tree-based architecture results in more, faster transactions at a lower cost than alternatives. In the future, Umbrella envisions interoperability with other layer-1 platforms as well, including Avalanche, Solana, Polkadot, and more.
The move marks the start of Umbrella’s BSC Month event, which will include announcing new partnerships with over 10 BSC-based projects beginning this week with the first three: Smoothy, BlockBank, and UnoRe. Additionally, Umbrella has allocated a prize pool of $60,000 in UMB token for participants in its BSC Developer’s Challenge. Eligible projects will be built on BSC and use Umbrella’s layer-2 data. Developers interested in participating can contact Umbrella for more details.
Today’s announcement closely follows a slew of key developments for the Umbrella Network. Its IDO, or Initial DEX Offering, was one of the most successful in Polkastarter history and was followed by the subsequent launch of its public testnet. After those events, Umbrella finalized key partnerships with Huobi Group, the world’s second-largest cryptocurrency exchange, and HashQuark, one of Asia’s leading infrastructure service providers that have further confirmed the high quality of the company’s offering.