Umbrella Network Goes LIVE on Arbitrum Mainnet
Achieving scalability without compromising security or efficiency has been a challenge in the way of blockchain’s growth and large-scale public adoption for quite some time now. However, some excellent solutions have emerged. Arbitrum is one of them.
At its core, Arbitrum serves as a next-gen layer 2 scaling solution for decentralized applications on Ethereum. It helps users scale their dApp solutions at the lowest cost.
Built by OffChain Labs, Arbitrum has solid backing from a world-class team of researchers, engineers, and Ethereum enthusiasts. Financed by some of the leading investors in the world of blockchain including Pantera, Polychain Capital, Coinbase Ventures, and Delphi Capital, to name a few, Arbitrum works towards achieving unlimited economic efficiency for the blockchain.
It derives its security from Ethereum and can scale any Ethereum contract.
Umbrella Network is now live on Arbitrum mainnet and can integrate native support for the family of decentralized applications built on Arbitrum.
It would be pertinent to cite some of these dApps here that are live on Arbitrum. The list includes almost all the leading layer 2 applications in the market, including 1INCH, Aave, Curve, DAI, MakerDAO, Sushi, Uniswap, and many more.
The Significance of the Mainnet Launch
Mainnet is the live blockchain. Developers perform rigorous testing of their code before they deploy it on the mainnet. This testing arena is known as the Testnet. Once things go well on the testnet, it is shifted to the mainnet.
When users leverage Arbitrum, they first send their transactions to an aggregator. The aggregator then posts the transactions in batches to Ethereum. Next come the validators.
These validators process the batch and post an assertion. As a robust fraud-prevention mechanism, everyone on the network checks the assertion, making it fraud-proof. Finally, the assertion is confirmed. It is how Arbitrum works as a scalability solution with Ethereum’s security.
The launch of the Umbrella Network mainnet on Arbitrum implies the deployment of Umbrella’s Smart Contracts on Arbitrum so that Arbitrum dApps can leverage Umbrella’s benefits, which includes accessing it’s oracles. Let us have a look at what some of these benefits are in the next segment.
The Umbrella Network Benefits
Umbrella Network has several major USPs. To begin with, it offers the best-in-class decentralization benefits at a significantly low cost. Yet, it does not lose on its scalability benefits, nor does it compromise on security.
As a decentralized oracle, Umbrella’s process is much more efficient than its peers that process each piece of data as separate transactions. Umbrella aggregates its data, which allows massive scaling and incredibly low processing costs. Other oracles have high to very high cumulative transaction costs when users are looking for large amounts of data or want their price feeds to be updated in frequent intervals.
To keep the cost and accessibility of services within the reach of a large number of users, other oracles either offer limited volumes of data or reduce the frequency of updating to once a day or likewise intervals. The number of data points also stays near the levels of a few hundred. The Umbrella Network, on the other hand, currently offers over to 4,000 data feeds, all of which will be available to dApps on Arbitrum immediately.
The variety of data that users get from Umbrella is also diverse. For instance, users can go for the core pairs such as BTC, ETH, DAI, or the token prices of mid and small cap projects. Moreover, it also offers real-world financial data on indexes and commodities, derivative instruments, and much more.
“We are continuing our mission to bring the world’s data on chain, and to be able to support the data needs of as many applications and projects across the leading blockchains, including L2 scaling solutions like Arbitrum,” said Umbrella Network’s President, John Chen. “We’re excited to be on mainnet and to be able to start providing data feeds to the many dApps on Arbitrum. We plan for more exciting partnerships ahead as we look to deliver innovative solutions within their ecosystem.”
Umbrella Network is now live on five blockchain ecosystems including Ethereum, BSC, Polygon, Avalanche and Arbitrum, with more support planned for additional chains in the coming months.
Unlike regular Ethereum dApps, smart contracts on Arbitrum compile separately from the Ethereum blockchain. Code and transactions execute off-chain on sidechains or state channels to process transactions faster and with up to 270 times lower fees. These lower costs help to make DeFi more accessible.
Arbitrum is unique among Layer 2 protocols aiming to improve Ethereum’s speed and scalability due to its superior EVM compatibility and commitment to simplifying development to bridge DeFi applications from Ethereum. Arbitrum’s developer-friendly approach, commitment to simplification, and “optimistic” approach to transaction validation have been strongly received in the industry and attracted major partners.
Arbitrum doesn’t have its own token, as the developers do not feel there is a need for one — fees can be paid with Ether, instead of a unique native token. They want users to feel exactly like they are interacting with the Ethereum blockchain, but with transactions costing a fraction of Ethereum’s fees.
About Umbrella Network
Umbrella Network is a scalable, decentralized, and community-owned oracle that utilizes Layer 2 technology to integrate real-time data into smart contracts for accurate and timely reports. Umbrella Network brings the world’s data to blockchains to enable DeFi applications to perform at the optimum level regarding precise information dissemination. It believes a decentralized oracle is paramount to creating a truly decentralized financial space.
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