5ireChain has announced a strategic partnership with Umbrella Network (UMB), a decentralized blockchain-based oracle service that provides scalable data solutions for blockchain projects.
5ireChain, a layer 1 protocol that enables developers to build dApps that connect blockchain with real-world impact, made the announcement today on the X Platform. Based on the alliance, UMB provides authenticated and secure decentralized oracles that power the 5ireChain ecosystem.
Together, both 5ireChain and UMB tackle global sustainability issues by bridging blockchain with real-world applications.
๐ฐ @5ireChain has partnered with @UmbNetwork, which will serve as the exclusive oracle for the 5ire ecosystem.
๐ค This collaboration will provide seven high-frequency price feeds for decentralized applications (dApps).
๐ฅ The partnership combines innovation andโฆ pic.twitter.com/jdq9HERMgR
โ ๐ฃ ๐๐จ๐ฅ๐ฒ๐ ๐จ๐ง ๐๐ฉ๐๐๐ ๐ฃ (@Polygon_Space1) December 13, 2024
UMB’s support for 5ireChain
Based on the partnership, 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 various projects in its ecosystem, meeting all their unique data feed needs.
The integration enables 5ireChain developers to build highly secure dApps that are scalable without the limitations of congestion issues or exorbitant data costs. The partnership introduced several Oracle products to the 5ireChain network, including token market price feeds. According to the announcement, UMB is the first and last oracle of the 5ireChain protocol.
UMB’s Oracle product now provides real-time pricing data to 5ireChain’s on-chain assets, including the native cryptocurrency 5IRE and others. The integration leverages UMB’s expertise in curated trading data from a vast network of varied sources to create strong market price feeds.
The collaboration paved the way for further technical innovations between the two platforms. It marks a significant step forward in connecting blockchain technology with real-world assets (RWA).
Using Oracles in real 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 reality. By design, blockchains are closed systems that rely 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 outside their network.
Oracles addresses this concern by serving as an intermediary that provides blockchains with verified, off-chain data, and enables smart contracts to actively communicate with the outside world. By connecting blockchains to various data sources such as IoT device metrics, crypto market prices, etc., oracles are unleashing new, robust applications across industries.
In the crypto landscape, oracles provide important real-time data feeds that power various real-world applications such as collateral management, asset pricing, borrowing, lending, and others.
Apart from the above scenario from 5ireChain, Synthetix, a DeFi protocol for creating synthetic assets, is another good example of how blockchain connects to real-world assets (RWAs).
Synthetix relies on Chainlink’s oracles to access real-time prices, allowing tokenized RWAs to operate on the network. By relying on Chainlink’s price feeds, Synthetix provides its synthetic assets with accurate prices, allowing its users to trade RWAs on-chain reliably and reliably.