Layer-2 Data Feeds On Umbrella Network: A Concise Summary

Aniel Essien
3 min readJul 30, 2022


Are there decentralized oracle services that provide highly scalable, affordable, and safe solutions for smart contracts? The answer is yes! Umbrella Network is not only all of these incredible things, but this project also allows access to data formerly unavailable to developers in the blockchain space. And it’s as pocket-friendly as it gets. Plus, you get more data than the average oracle in the ecosystem.

Umbrella Network has plenty of interesting facets to learn about. But I’ve been particularly intrigued by their Layer-2 data feed situated on a Layer-2 Network as the network contract enables authentication of cryptographic integrity by developers and users. The purpose of this is to determine the authenticity of all data taken off Layer-2 data feeds.

Using a Merkle Tree rolled up and affixed to Ethereum, Umbrella Network scales without compromising data integrity and security. Every leaf on Umbrella’s Merkle Tree stands for a data point which could be crypto pairs like ETH/USDT. These leaves are rolled up from the last leaf to the Root Hash. What is a Root Hash on Umbrella Network? A Root Hash is the Merkle Tree represented uniquely.

One of the characteristics of Umbrella’s Merkle Tree is demonstrating the authenticity of data. For example, in the event of being given internal data such as block ID or key-value pair with the sibling hash, one can then approve that data’s validity. Moving forward, let’s try to understand how uniqueness is determined. This is done by a hashing algorithm. Thus, should data be altered, a different hash will be created or derived.

With the hashing of all data, the next phase of the tree is created. They are then paired and hashed together once more, creating the next level on the Merkle Tree. Rinsing and repeating this process brings us to the root of Umbrella’s Merkle Tree. Hashes are distinct in themselves, producing a varied range of roots.

Finally, Root Hashes are stored on-chain and to prove that K4V7 is authentic, Umbrella Network carries out these 5 steps.

Find out the K4 and V4 so they can be hashed to get H14

Find out the pair for H13 to get hash H22 (H13 pairs are known as “siblings” and are proffered by Umbrella)

Have H13 and H14 siblings to derive H22

Repeat hashing process with siblings till root is arrived at

Conclude validity of the root if it’s identical to the root saved on-chain

Guys, it sounds a lot more complicated writing it but this entire procedure is rudimentary as possible if you simply know your onions on Umbrella Network and the many layers that make up its infrastructure. This project makes use of the exceptional Merkle Tree qualities to provide data for Layer 2 applications and dApps. Lastly, Umbrella Network makes sibling proof, Key Value Pair, and block ID available, enabling confirmation of data validity by applications.

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.

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Aniel Essien

A realist | a Blockchain Enthusiast | iWriteCoolShit