5ireChain has announced a strategic partnership with Umbrella Network (UMB), a decentralized blockchain-based oracle service that offers scalable data solutions to blockchain projects.
5ireChain, a layer 1 protocol that empowers developers to build dApps that connect blockchain with real-world impact, made the announcement today on the X platform. Based on the alliance, UMB offers verified and secure decentralized oracles that power 5ireChain’s ecosystem.
Together, both 5ireChain and UMB are addressing global sustainability issues by bridging blockchain with real-world applications.
UMB’s support for 5ireChain
Based on the collaboration, UMB’s on-chain data solution provides the 5ireChain ecosystem with seven customizable price feeds to power all its applications running on the network. In this way, UMB supports 5ireChain’s diverse projects on its ecosystem, catering to all their unique data feed needs.
The integration empowers 5ireChain developers to develop highly secure dApps that are scalable without the limitations of congestion issues or exorbitant data costs. The partnership introduced various Oracle products to the 5ireChain network, including token market price feeds. According to the announcement, UMB is the first and final oracle of the 5ireChain protocol.
UMB’s Oracle product now provides real-time price data to 5ireChain’s assets on-chain, including native cryptocurrency 5IRE, and others. The integration leverages UMB’s expertise in compiled trade data from a huge network of varied sources to create strong market price feeds.
The collaboration set the stage for further tech innovations between the two platforms. It marks an important step forward in connecting blockchain technology with real-world assets (RWA).
Uses of Oracles in real-world applications
In the rapidly growing blockchain space, oracles emerged as a crucial resource. Oracles are an essential tool used to bridge the gap between physical and digital realities. By design, blockchains are enclosed systems, which depend on internal data to execute smart contracts and process transactions. However, that closed nature causes a serious limitation: without access to external data (information), blockchain cannot interact with information or respond to real-world events beyond their network.
Oracles address this concern by serving as intermediaries that provide blockchains with verified, off-chain data, activating smart contracts to interact actively with the outside world. By connecting blockchains to various data sources like IoT device metrics, crypto market prices, etc., oracles unleash new, robust applications across industries.
In the crypto landscape, oracles provide important real-time data feeds that power various real-world applications like collateral management, asset pricing, borrowing, lending, and others.
Apart from 5ireChain’s scenario above, Synthetix, a DeFi protocol for minting synthetic assets, is another good example of how blockchain connects with real-world assets (RWAs).
Synthetix depends on Chainlink’s oracles to access real-time prices, enabling tokenized RWAs to operate on the network. By relying on Chainlink’s price feeds, Synthetix provides its synthetic assets with accurate prices, ensuring its users trade RWAs in a trustless and reliable manner on-chain.
