Oracle Machine: Finding the Second Rise Curve

The Oracle Machine is one of the cornerstones of the blockchain world, bringing off-chain data into smart contracts. The core competitiveness of Oracle Machine projects mainly manifests in four aspects: the comprehensiveness and reliability of data acquisition, the acquisition of exclusive data and value capture, the security and decentralization of the verification mechanism, and the efficiency of transmission and network robustness.

It is expected that by 2030, the overall market size of the Oracle Machine sector will be between 13.8 billion and 23.1 billion USD. Currently, Chainlink is the absolute leader in the Oracle Machine sector, with rich data sources and extensive project collaborations. Pyth has advantages in transmission speed and financial data acquisition. Redstone is currently the only Oracle Machine that has both Push and Pull pricing methods.

In the future, the Oracle Machine will no longer overly rely on providing pricing services for DeFi projects, and RWA is expected to become a strong second rise curve in the Oracle Machine track. DePIN, AI, and DeSci businesses have the opportunity to combine with the data services of the Oracle Machine in the future, becoming new momentum for the revenue growth of the Oracle Machine, allowing industry growth to move from 2 to N.

1. The Development History of Oracle Machine

In 2014 and earlier, the demand for Oracle Machine began to emerge.

In 2015-2016, the co-founder of Ethereum proposed the concept of Oracle Machine, and the first decentralized Oracle Machine service was launched.

In 2017-2018, the Chainlink project was established, proposing the concept of a decentralized Oracle Machine network.

From 2019 to 2021, DeFi exploded, the demand for Oracle Machines surged, and multiple projects were launched.

In 2022-2023, Oracle Machine services expanded to multi-chain and multi-scenario.

In 2024-2025, Oracle Machine services will expand from DeFi to fields such as gaming, NFTs, and insurance.

2. Oracle Machine Track Market Size

By the end of 2024, the total market value of the Oracle Machine project will be $10.55 billion, accounting for 11.8% of the total DeFi market value. Based on Grand View Research's forecast for the DeFi market, this article introduces two hypothetical scenarios: "stable share" and "declining share" to estimate the market potential of the Oracle Machine.

• Optimistic scenario: If the Oracle Machine market size can maintain 10% of the DeFi market size, it will reach 23.1 billion USD by 2030.

• Neutral scenario: If the Oracle Machine market size remains at 6-8% of the DeFi market size, it will amount to 13.8-18.4 billion USD by 2030.

3. The Main Projects in the Oracle Machine Track

3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine space, providing services such as price feeds, automation, verifiable random functions, and cross-chain operations. In 2024, price feed service revenue accounts for 95% of the project's income, while other service revenues account for a total of 5%.

3.1.1 Chainlink Price Feed Service

Chainlink's price feed service obtains data from multiple independent nodes and high-quality data aggregators, performs local aggregation and cleansing, and then submits it on-chain.

3.1.2 Chainlink Automation

Chainlink's Automation 2.0 introduces cryptographic consensus in decentralized off-chain computation, transferring the costly computation verification in blockchain networks to off-chain networks.

3.1.3 Chainlink Cross-Chain Protocol

Chainlink has released a cross-chain interoperability protocol (CCIP), providing smart contract developers with a general infrastructure that has computational capabilities, enabling the transmission of data and smart contract instructions across various blockchain networks.

3.1.4 Chainlink Verifiable Random Function

Chainlink VRF uses Goldberg's verifiable random function to generate one or more random numbers for each random number request, along with a cryptographic proof of the random number.

3.1.5 Chainlink Enterprise Privacy Data Services

Chainlink provides enterprises with the opportunity to sell data and API services to the blockchain environment, enabling various functions such as on-chain privacy data, off-chain contract logic computation, and on-chain trading of privacy data.

3.2 Pyth Network

Pyth Network is a key project supported by the Solana Foundation, and its fast price update frequency is one of its important tags. Pyth Network supports a total of 65 public chains, second only to Redstone, making it one of the oracle machines that support the most public chains.

3.2.1 Pyth Network price feed service

The Pyth price feeding service provides corresponding SDKs for different types of public chains such as EVM chains, Solana, and Sui.

3.2.2 Pyth Network Random Number Generation Service

Pyth Entropy is a random number generation product launched by Pyth Network, and the principle of generating random numbers is similar to Chainlink's random number generation service.

3.2.3 Pyth Network Quick Relay Service

The Fast Relay Service is the latest product launched by the Pyth team in July 2024, aimed at eliminating the maximum extractable value on-chain MEV(.

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) 3.3 Redstone

Redstone has currently completed the integration of over 70 public chains, making it the project with the most integrated public chains in the Oracle Machine sector. Redstone's products include push models and pull models, as well as AI Oracle Machines, a brand new field.

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)# 3.3.1 Redstone Push Model

The push model consists of two main parts: off-chain relayers and on-chain contracts.

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)# 3.3.2 Redstone Pull Model

On-chain smart contracts actively call the Oracle Machine interface when they need data, requesting the latest off-chain data from RedStone.

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)# 3.3.3 Redstone AI Oracle Machine Architecture CLARA

CLARA is a blockchain communication layer framework launched by Redstone, designed to achieve seamless communication between agents.

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4. RWA opens the Oracle Machine track's second rise curve

The demand for Oracle Machine in RWA is more complex, including both asset valuation and real-time tracking and on-chain synchronization of physical asset status, making it a new battlefield for the extension of Oracle Machine capabilities.

) 4.1 RWA feed price service demand rise, Oracle Machine becomes the beneficiary

The integration of traditional finance and crypto technology is one of the biggest narratives of 2024. Consulting firm McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion.

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) 4.2 has provided services for RWA projects Oracle Machine

Multiple Oracle Machine projects have begun to provide services for RWA projects, including Chainlink, Redstone, Pyth Network, Supra, and Chronicle Labs.

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) 4.3 Non-financial assets, high-threshold off-chain data modeling

Non-financial assets refer to assets whose prices cannot be reflected in real-time and need to be represented at a certain point in time through mathematical modeling and other methods. The Oracle Machine needs to provide more complex services, such as accessing data sources that can reflect asset status and influencing factors, and combining this information with mathematical models to convert it into reliable on-chain prices or risk assessments.

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5. Multi-Type Data Dedicated Oracle Machine, Industry rise Curve from 2 to N

) 5.1 Internet of Things data Oracle Machine, DePIN capacity expansion

The Internet of Things Oracle Machine allows device users to monitor device data in real-time. The blockchain oracle Echolink deployed on Solana is one of the few oracles designed for DePIN.

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) 5.2 Code Oracle Machine, Bittensor is timely

Bittensor is currently one of the most successful examples of the integration of AI and blockchain. In the future, there may be dedicated Oracle Machines to upload off-chain code to the blockchain.

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) 5.3 Biomolecular Oracle Machine, the infrastructure of Crypto × Biotech

If there is an Oracle Machine specifically for biomacromolecules, with multiple node operators scoring clinical trial results for macromolecules, it can effectively reduce the understanding barrier for on-chain investors in the biopharmaceutical industry through a decentralized approach.

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Conclusion

The Oracle Machine is gradually evolving from a "general data layer" that serves standardized financial protocols to a "multimodal infrastructure" supporting vertical scenarios. RWA is expected to become