New Opportunities in the Oracle Machine Track: The Second Rise Curve from Decentralized Finance to RWA

The Oracle Machine is one of the important infrastructures in the blockchain world, and its core competitiveness is mainly reflected 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 transmission efficiency and network robustness.

It is estimated that by 2030, the overall market size of the Oracle Machine sector should be between 13.8 billion and 23.1 billion USD. Chainlink is the absolute leader in this sector, with rich data sources and extensive project collaborations. Pyth has advantages in transmission speed and the acquisition of financial data. Redstone is currently the only Oracle Machine that has both Push and Pull feeding 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. Emerging businesses such as DePIN, AI, and DeSci also have the opportunity to combine with the data services of the Oracle Machine, becoming new driving forces for industry growth.

The Development History of Oracle Machines

2014 and earlier: Oracle Machine demand began to emerge, and projects like Augur started to explore.

2015-2016: Ethereum co-founder Vitalik Buterin proposed the concept of Oracle Machine, and Oraclize launched the first decentralized oracle service.

2017-2018: The Chainlink project was established, proposing the concept of a decentralized Oracle Machine network (DON).

2019-2021: The DeFi Summer arrived, the demand for Oracle Machines exploded, and several projects such as Band Protocol and Tellor were launched one after another.

2022-2023: Oracle Machine services expand to multiple chains and scenarios. Chainlink launches cross-chain interoperability protocol (CCIP), Pyth Network mainnet goes live.

2024-2025: Oracle Machine services expand from Decentralized Finance to fields such as gaming, NFTs, and insurance. The demand for IoT Oracle Machines increases due to DePIN applications, and the combination of AI and Oracle Machines explores new scenarios.

Oracle Machine track market size

As of the end of 2024, the total market value of Oracle Machine projects is 10.55 billion USD, accounting for 11.8% of the total market value of Decentralized Finance. Based on Grand View Research's forecast for the DeFi market, this article proposes two hypothetical scenarios to estimate the market space for Oracle Machines:

• Optimistic scenario: The Oracle Machine market size maintains at 10% of the Decentralized Finance market size, reaching $23.1 billion by 2030.

• Neutral scenario: The Oracle Machine market size will remain at 6-8% of the Decentralized Finance market size, reaching 13.8-18.4 billion USD by 2030.

Main Projects in the Oracle Machine Track

Chainlink

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

Chainlink's price feeding service obtains data from multiple data aggregators through several independent nodes, which is then locally aggregated and cleaned before being submitted on-chain. Chainlink also launched Automation 2.0, introducing cryptographic consensus to move the expensive computational verification in the blockchain network to an off-chain network.

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

Chainlink also provides privacy data on-chain services for enterprises and has completed pilot projects for tokenized fund settlement with SWIFT and UBS.

Pyth Network

Pyth Network is an Oracle Machine project strongly supported by the Solana ecosystem, known for its fast price update frequency. Pyth supports 65 public chains, and its pricing services are mainly concentrated on the Solana chain.

Pyth has also launched the (Express Relay), a fast relay service aimed at eliminating on-chain MEV(maximum extractable value). This service introduces relayers, allowing users to bid for priority processing of transactions, with the profits going to the protocol layer rather than the nodes.

Redstone

Redstone is currently the Oracle Machine project with the most integrated public chains, supporting over 70 public chains. Redstone simultaneously adopts both Push and Pull data acquisition modes, making it the only data supplier that uses a dual-mode.

Redstone has also launched the CLARA framework, aimed at achieving seamless communication between AI agents, preparing for future AI-related Oracle Machine services.

RWA opens the second rise curve of the Oracle Machine track

The rise of RWA( real-world assets ) brings new rise opportunities for the Oracle Machine. Unlike DeFi, which mainly provides price feeds, the demand for Oracle Machines in RWA is more complex, including both asset valuation and real-time tracking of physical asset status with on-chain synchronization.

According to McKinsey's forecast, by 2030, tokenized real-world assets will reach $20 trillion. As of March 2025, the total asset scale of RWAs is $247.4 billion, indicating significant rise potential.

Currently, multiple Oracle Machine projects have begun providing services for RWA:

• Chainlink supports the pricing of tokenized RWAs in the Backed Finance.
• Redstone introduces Eurozone government bond ETF data sources to the crypto world.
• Pyth Network provides pricing services for Ondo Finance
• The DORA 2.0 of the Supra public chain provides RWA pricing services.
• Chronicle Labs launched the RWA Oracle Machine "The Verified Asset Oracle"

For non-financial assets ( such as real estate, charging piles, photovoltaic components, etc. ), the Oracle Machine needs to provide more complex services, including connecting to data sources that reflect the asset status and influencing factors, and combining this information with mathematical models to convert it into reliable on-chain prices or risk assessments.

Multi-type Data Dedicated Oracle Machine, Industry rise curve from 2 to N

With the expansion of on-chain demand, the service capacity of the Oracle Machine is transitioning from "generalized transmission" to "vertical processing." Potential dedicated oracles that may emerge in the future include:

IoT data Oracle Machine

Provide data support for the DePIN project, such as Echolink has completed the connection of about 8 million hardware devices.

Code Oracle Machine

Can be used for vulnerability checks of smart contracts, such as providing code audit services for DEXs like Uniswap.

Biomolecular Oracle Machine

Provide data support for Crypto × Biotech projects, such as uploading clinical performance data of macromolecules to the blockchain to support the value of related tokens.

Conclusion

As the integration between the blockchain world and the real world becomes increasingly close, Oracle Machines face opportunities and challenges in processing multimodal data. RWA is expected to become the main second rise curve in the Oracle Machine track, while vertical specialized Oracle Machine startups will continue to emerge, driving the industry from "2" to "N" expansion.