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UMBRELLA BLOCKCHAIN ORACLE – JULY 2021 MONTHLY REVIEW BY CRYPTO SMART

If you’ve been in the blockchain space for at least 1 year, you must have come across the term “Blockchain Oracles”.

WHAT ARE BLOCKCHAIN ORACLES?

If you’re a movie person, you’ve probably come across the character of an Oracle in a story. Oracles see into the future and foretell, or see into realms that the normal character isn’t able to see, they see the outcome concerning various circumstances depending on choices that the character makes.

Well “BLOCKCHAIN ORACLES” do the same thing, except seeing the future (lol).

 

“Blockchain Oracles help Smart Contracts call data from outside the blockchain so they can perform a predetermined logic”.

HOW DO BLOCKCHAIN ORACLES WORK?

To see the importance of Blockchain Oracles you need to see the importance of Smart Contracts. Smart Contracts are self-executing contracts written on the blockchain to execute when some predetermined action has been taken without any middle man.

Smart Contracts only interact with Data on the Blockchain, they don’t have access to data outside the Blockchain, and that’s where Blockchain Oracles come in.

 

FOR EXAMPLE

If I own a betting company on the blockchain, with Smart Contracts written to pay when a team wins the world cup. This contract is to execute if team A wins such that all the funds from those who bet against team A are transferred to the pool for those who bet for team A.

How will the smart contract know when Team A wins the World Cup, and then transfer the funds from those who bet against them to those who bet for them? Smart Contracts aren’t smart enough to source data outside the BlockChain, and that is what Blockchain Oracles do.

My betting company has to partner with a Blockchain Oracle service provider that can source for the world cup winning data from more than one sports website to gather the data, and filter the relevant one, and feed it to the Smart Contract so it can carry out the predetermined action which is transferring the bet funds from the losers to the winners.

WHY ARE BLOCKCHAIN ORACLES IMPORTANT?

For Blockchain adoption to grow, it has to be relevant to the real world, it needs to solve real-world problems of trust, decentralization, and security in transactions. This is what Smart Contracts help to do and we’ve seen it applied in DeFi.

The problem is that Smart Contracts aren’t able to access real-world data for executing conditional logic written in them. Most of the logic we see in contracts for DeFi is conditional and the data is called up from the blockchain; eg, if Alice deposits $10,000 in UMB tokens to the contract, release $5,000 in USDT to his wallet address. the Smart contract can have access to the data of that activity because it is performed on the Blockchain.

But what happens when the logic is based on an activity that should happen outside the blockchain, something that is not predetermined?

 

ENTER BLOCKCHAIN ORACLES!!!

 

Oracles source and provide validation on the data they feed the smart contract, this process is a lot technical and also presents a few problems;

  1. The Problem of Centralization – Since oracles source data from the outside world, it is possible that the source of their data which is a centralized source can be manipulated or the owners could deliberately alter the information. If Blockchain Oracles get info from one source then it faces the problem of Centralization which is a problem Blockchains try to solve.
  2. Expensive & Slow – Running blockchain Oracles aren’t exactly cheap and they need quite a lot of computation and time to complete and validate data.
  3. Versatility in data points – A lot of the oracles existing today source data from a limited few data points, also there are issues like the Schelling Point Game theory issue. But that’s a topic for another post.

 

ENTER UMBRELLA NETWORK!!

HOW UMBRELLA NETWORK IS SOLVING THE BLOCKCHAIN ORACLE PROGRAM 
  1. DECENTRALIZATIONUmbrella Network is a decentralized community-owned Blockchain Oracle using Delegated Proof of Stake consensus algorithm.
  2. EFFICIENT AND EFFECTIVE – Umbrella Network provides secure and cheap oracle services by utilizing Layer 2 sidechains with Merkel Tree system for data aggregation which helps connect blocks and establishes good hash functions in such a way that the data on the blocks are efficiently called by the smart contract regarding the exact file source the contract needs and prevents malicious centralized sources from making a historyless change on the Blockchain.
  3. DATA POINTS – Direct API calls to real-world data in various industries in the market like equities, indexes, derivatives, and more. With Umbrella Network, developers can easily call layer2 data into their smart contracts helping the smart contract to access data, faster cheaper, and reliably.

 

Umbrella Network is set to provide solutions in the Blockchain Oracle space and they’re just beginning. Below is an overview of their activities in the month of July.

 

UMBRELLA NETWORK ACTIVITIES IN THE MONTH OF JULY

LAUNCH ON BSC MAIN-NET

Umbrella Network started the Month of July with the announcement of its launch on the BSC Main-Net just 4 months after their IDO, this launch will be followed by launches on other blockchains very soon, and some of these blockchains are Ethereum and Solana.

This means that projects built on these platforms will be able to call data from Umbrella Network using their API.

 

 

PARTNERS WITH SAFEPAL WALLET

Following the launch on Bsc Main-net, Umbrella Network partnered with Safepal wallet, one of BSC’s prominent ecosystem non-custodial wallet providers. This partnership brings users and holders of the $UMB tokens, seamless access to the Umbrella DeFi interface for liquidity pools, staking, and earning of UMB tokens across ERC20 and BEP20 networks.

 

 

 

INTERNAL AMA

Members of the Umbrella Network team held an Internal AMA on their Telegram channel with John Chen the Head of Marketing and Sam Kim Founding partner of Umbrella Network. This AMA helped users, and investors alike understand the roadmap and the new developments that were to come.

 

 

 

CRYPTO RANK UMBRELLA NETWORK

Also in July, Umbrella network got featured on Cryptorank as one of the top 10 Oracle projects with a fully diluted market cap.

 

 

 

 

UMBRELLA ROUNDTABLE

The Umbrella Roundtable event featured John Chen, the Head of Marketing, and members from the technical team in persons of Miguel, Alexander & Dariusz as they gave insight into the activities and technical developments coming for Umbrella Network.

Amongst the things discussed were BSC Mainnet Launch, Product features, Developments in DeFi, and more.

 

 

 

UMB NET ANNOUNCES $5,000 PRIZE

Eth developers were incentivized through the Gitoin10  Grants, Bounty, and Hackathon program for developers who build dApps using UMB Oracle.

 

 

 

 

UMBRELLA NETWORK ANNOUNCES DEVELOPER PORTAL

This developer portal makes it easier for developers to easily copy each key parameter and validate key-value pairs on their codes.

It makes it easy for developers to access the information they need to build dApps on the Umbrella Network.

 

 

 

Stay tuned for more info nation on the Umbrella Network, I’m particular to see what the Month of august activities for Umbrella Network will be like.

Acquaint yourself with this infographic summarizing UMB network infrastructure.

For info on UMB, reach them here:

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Telegram Channel

 

 

 

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