Oracle Machine Track: Exploring the Second Rise Curve

The Oracle Machine is a key infrastructure in blockchain systems, used to bring off-chain data into smart contracts. Starting from first principles, 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 transmission efficiency 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. Chainlink, as the industry leader, has significant advantages in the richness of data sources and the breadth of project collaborations. Pyth Network excels in transmission speed and financial data acquisition. Redstone is currently the only Oracle Machine that supports both Push and Pull pricing methods.

In the future, the Oracle Machine will no longer overly rely on providing price feed services for DeFi projects, and real-world assets (RWA) are expected to become a strong second rise curve in the Oracle Machine sector. At the same time, 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 revenue growth and pushing industry growth from 2 to N.

1. The Development History of the Oracle Machine

The concept of Oracle Machine was proposed by Ethereum co-founder Vitalik Buterin in 2015, emphasizing its key role in obtaining external data for smart contracts. In the same year, Oraclize(, now known as Provable), launched the first decentralized oracle service. In 2017, the Chainlink project was established, proposing the concept of a decentralized oracle network( DON) aimed at solving the single point of failure problem.

During the DeFi Summer of 2020, Oracle Machine emerged as the most essential external data service provider for DeFi, leading to an explosion in demand. Subsequently, cross-chain interoperability and modular blockchain became industry trends, and Oracle Machine services expanded to multiple chains and scenarios. From 2024 to 2025, Oracle Machine services will extend from DeFi to areas such as gaming, NFTs, and insurance. DePIN applications are beginning to create more demand for IoT Oracle Machines, and the combination of AI and Oracle Machines is also exploring new scenarios for automated execution of smart contracts.

2. Oracle Machine track market scale

As of the end of 2024, the total market value of the Oracle Machine project is $10.55 billion, accounting for 11.8% of the total DeFi market value. Compared to early 2021, when the market value of the Oracle Machine once accounted for more than 25% of DeFi, this percentage has significantly decreased. The main reason is that new models such as re-staking have expanded the industry boundaries of DeFi, but the "necessity" of the Oracle Machine remains solid.

Based on Grand View Research's prediction for the DeFi market, the compound annual growth rate from 2025 to 2030 is approximately 53%, and by 2030 the market value will reach $231 billion. This allows for an estimation of the Oracle Machine market space.

• Optimistic scenario: The Oracle Machine market size maintains 10% of the DeFi market size, reaching 23.1 billion USD by 2030.
• Neutral scenario: The Oracle Machine market size will remain at 6-8% of the DeFi market size, reaching 13.8-18.4 billion USD by 2030.

3. Main Projects in the Oracle Machine Track

( 3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine space, providing data feeds ), automation ###, verifiable random functions (, cross-chain operations ), and other services. In 2024, data feed service revenue accounted for 95% of the project's cumulative revenue, with DeFi protocols being the main service targets.

Chainlink's price feeding service obtains data through data nodes, with multiple independent nodes sourcing information from high-quality data aggregators. After local aggregation and cleansing, the data is submitted on-chain. Chainlink's aggregation contract filters and performs a weighted average on the data reported by all nodes to derive the final on-chain price for smart contract invocation.

Chainlink Automation launched Keeper trading automation services in 2021 and upgraded to Automation 2.0 in 2024. The new version introduces cryptographic consensus in decentralized off-chain computation, moving the expensive computational verification from the blockchain network to the off-chain network, which improves the uptime of dApps, reduces costs, and simplifies the user experience.

In 2021, Chainlink released the 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.

Chainlink VRF is a verifiable random function that generates one or more random numbers for each random number request, along with a cryptographic proof. This proof is published on-chain and verified, and only after successful verification will the random numbers be used.

In addition, Chainlink also provides peer-to-peer transmission services for private data for enterprises, enabling functionalities such as on-chain privacy data, off-chain contract logic computation, and on-chain trading of private data. In November 2024, Chainlink completed a pilot program with SWIFT and UBS Group to test tokenized fund settlements among the parties.

( 3.2 Pyth Network

Pyth Network is a key supported Oracle Machine project in the Solana ecosystem, characterized by its fast price update frequency. Pyth currently supports 65 public chains, second only to Redstone. However, its primary pricing service still occurs on the Solana chain. According to data analysis, the interaction numbers of Chainlink and Pyth on Ethereum and Solana have formed barriers, making it difficult for each to expand market share on the other's public chain.

Pyth price feeding service provides corresponding SDKs for different public chains such as EVM chains, Solana, and Sui. Users can call Pyth's price feeding service after installing the SDK.

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Pyth Entropy is a random number generation product it has launched, which is easy to use and can be completed with just a few lines of code. Users obtain random numbers by calling the requestWithCallback method of the IEntropy contract and need to pay the fee in Gas Token.

In July 2024, Pyth launched the )Express Relay( fast relay service, aimed at eliminating on-chain MEV) maximum extractable value###. This service introduces relayers on the Solana network, allowing users to bid for priority processing of transactions, with the bidding profits going to the protocol layer rather than the nodes, maximizing the interests of DeFi protocols.

( 3.3 Redstone

Redstone is a cross-chain Oracle Machine project that has completed integration with over 70 public chains, making it the project with the most integrated public chains among Oracle Machines. Redstone's products include the Push Model ), Pull Model (, and AI Oracle Machine, making it the only data supplier that simultaneously uses both Push and Pull modes.

The push model of Redstone consists of two parts: off-chain relayers and on-chain contracts. The off-chain relayer is an innovative design that operates as a customizable service, regularly checking a defined set of conditions and pushing prices when the conditions are met. This design achieves the customization and automation of the price feed service.

The pull model refers to the on-chain smart contract actively calling the Oracle Machine interface when it needs data, requesting the latest off-chain data from Redstone. This method injects data directly into user transactions, maximizing gas efficiency while simplifying dApp data access.

Redstone has also launched the AI Oracle Machine architecture CLARA, aimed at achieving seamless communication between agents. CLARA consists of three key components: market module, SDK, and framework plugin, providing a communication layer for mainstream AI Agent architectures.

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4. RWA Opens the Oracle Machine Track's Second Rise Curve

As the penetration rate of the DeFi market approaches saturation, the Oracle Machine sector needs to find new points of rise. The demand for Oracle Machines in real-world assets ) RWA ### is more complex, involving both asset valuation and real-time tracking and on-chain synchronization of physical asset status, becoming a new battlefield for the extension of Oracle Machine capabilities.

( 4.1 RWA Oracle Machine service demand rise

The integration of traditional finance and cryptocurrency technology is one of the biggest narratives of 2024. For cryptocurrency investors, RWA is a favorable tool for hedging on-chain risks. Real-time feedback on off-chain asset prices requires the use of Oracle Machine, allowing investors to monitor changes in total asset net value in real time.

McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion. As of March 2025, the total asset size of RWAs is $247.4 billion ), including stablecoins (, which still has nearly 10 times growth potential. The Oracle Machine, as an important infrastructure for RWAs, is expected to achieve significant revenue increments.

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) 4.2 has provided services for RWA projects Oracle Machine

Multiple mainstream Oracle Machine projects have begun to layout in the RWA field:

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

These layouts present two development paths: one is to continue the DeFi logic, strengthening the on-chain representation of off-chain financial assets; the other is to explore more complex off-chain entity data modeling, providing real-time data support for high-threshold asset types.

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

RWA can be divided into financial assets and non-financial assets. Financial assets such as stocks and bonds have relatively easy data supply. Non-financial assets such as real estate and charging piles need to reflect the price at a certain point in time through mathematical modeling.

For non-financial assets, the Oracle Machine needs to provide more complex services, such as accessing data sources that reflect asset status and influencing factors, and combining mathematical models to convert information into reliable on-chain prices or risk assessments. Due to the high threshold for valuation modeling of non-financial assets, there are higher requirements for public chain transmission performance, with high-performance chains like Solana having an advantage in this aspect.

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5. Multi-type Data Dedicated Oracle Machine, Industry Rise Curve from 2 to N

As emerging scenarios such as RWA, DePIN, AI, and DeSci present more complex requirements for off-chain data, the capabilities of Oracle Machine services are evolving from "generalized transmission" to "vertical processing." In the future, the industry will move from "unified pricing feeds" to the parallel development of "multi-type specialized Oracle Machines."

( 5.1 Internet of Things Data Oracle Machine, DePIN capacity expansion

The IoT Oracle Machine allows device users to monitor device data in real-time. The BoAT3 proposed by the aitos.io project is an Oracle Machine paradigm based on IoT data, but it has not demonstrated sufficient influence. Echolink is one of the few Oracle Machines designed for DePIN and has completed connections for approximately 8 million hardware devices.

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) 5.2 Code Oracle Machine, Bittensor is timely

Bittensor is a success of the combination of AI and blockchain.