Oracle Machine track searching for the second rise curve

The Oracle Machine is a service mechanism in blockchain systems that is used to bring off-chain data into smart contracts, and it is one of the infrastructures of the blockchain world. Essentially, the core competitiveness of Oracle Machine projects is mainly reflected in the following four aspects: the comprehensiveness and credibility 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.

By 2030, the overall market size of the Oracle Machine sector is expected to be between $13.8 billion and $23.1 billion. Currently, Chainlink is the absolute leader in the Oracle Machine sector, with a rich data source and extensive project collaborations; Pyth has advantages in transmission speed and financial data acquisition; Redstone is currently the only Oracle Machine that simultaneously offers both Push and Pull pricing methods.

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

1. The Development History of Oracle Machine

2014 and earlier: the decentralized prediction market Augur emerged, and the demand for Oracle Machine began to appear.

2015-2016: Ethereum co-founder Vitalik Buterin proposed the concept of Oracle Machine. Oraclize( now launched the first decentralized Oracle Machine service as Provable).

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

2019-2021: The arrival of DeFi Summer, Oracle Machines became the core external data service providers for DeFi. Projects like Band Protocol and Tellor were launched.

2022-2023: The Oracle Machine expands to multi-chain and multi-scenario. Chainlink launches the cross-chain interoperability protocol (CCIP). Pyth Network mainnet goes live.

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

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 presents two hypothetical scenarios to estimate the market space for the Oracle Machine:

Optimistic scenario: The Oracle Machine market size maintains 10% of the DeFi market size, reaching $23.1 billion 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 dollars by 2030.

3. Main Projects in the Oracle Machine Track

The current landscape of the Oracle Machine industry can be described as "dominated by one company." In terms of token market capitalization and TVS( total protected value), Chainlink is the absolute leader in this sector. As of March 2025, Chainlink's TVS is $31 billion, accounting for 53.3% of the total TVS in the entire Oracle Machine sector, with a token market capitalization of $9.6 billion, accounting for 76.9% of the total market capitalization in the Oracle Machine sector. Besides Chainlink, projects like Pyth Network, UMA, and API3 also occupy a place in the Oracle Machine sector due to their advantages in low latency, verification mechanisms, and data acquisition.

3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine track, founded in 2017. Chainlink provides price feeds (Data Feed), automation (Automation), verifiable random functions (VRF), cross-chain operations (CCIP), and other services. In 2024, in terms of revenue composition, the income from price feed services accounts for the highest proportion of the project's revenue, making up 95% of total revenue, with DeFi protocols as the main service targets; the income from the other three types of services totals 5%.

3.1.1 Chainlink price feed service

The feed price is one of the most traditional services of the Oracle Machine. Taking the Aave lending platform as an example to obtain the real-time price of ETH/USDT, the user's transaction request on the chain will trigger a smart contract, which will call Chainlink's Oracle Machine service to obtain the latest price data. The Chainlink Oracle Machine obtains data from multiple high-quality data aggregators through multiple independent nodes, and the nodes locally aggregate and clean this data before submitting it on-chain.

3.1.2 Chainlink Automation

Automation( automation) is another important revenue-generating business of the Chainlink project. In 2021, Chainlink launched the Keeper trading automation service. The Keeper is an external account( EOA) that can trigger smart contracts based on predefined conditions under certain economic incentives. In 2024, Chainlink introduced Automation 2.0, which incorporated cryptographic consensus, moving the expensive computational verification of blockchain networks to off-chain networks.

3.1.3 Chainlink Cross-Chain Protocol

In 2021, Chainlink released the cross-chain interoperability protocol (CCIP), which is a new open-source standard for cross-chain protocols. This protocol provides 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

A verifiable random function is a cryptographic function that generates pseudo-random numbers based on data input and includes a proof that anyone can verify. Chainlink VRF uses Goldberg's verifiable random function (VRF).

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 computation of contract logic, and on-chain transactions of private data. In November 2024, Chainlink announced the completion of a pilot program with the Global Banking Financial Telecommunications Association (SWIFT) and Swiss banking giant UBS Group (UBS).

3.2 Pyth Network

Compared to predecessors in the Oracle Machine track like Chronicle, Chainlink, and WINkLink, Pyth Network only launched its project in 2021. Pyth Network supports a total of 65 public blockchains, second only to Redstone, making it one of the Oracle Machines with the most supported public chains. However, its main price feeding service still occurs on the Solana chain.

3.2.1 Pyth Network price feeding service

The competitiveness of the Pyth price feed service is mainly reflected in its low latency and exclusivity. Pyth does not establish the role of node service providers in price feeding; several financial institutions, including Wintermute and Flowdesk, are primary data suppliers for Pyth.

3.2.2 Pyth Network Random Number Generation Service

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

3.2.3 Pyth Network Fast Relay Service ( Express Relay )

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

3.3 Redstone

Redstone's products include the Push Model ( and the Pull Model ), as well as the new field of AI Oracle Machine. Redstone is currently the only data provider that employs both Push and Pull models.

(# 3.3.1 Redstone Push Model

The push model consists of two main parts. The first part is the off-chain relayer, responsible for pushing data to the chain in a customized manner through environmental variables. The second part is the on-chain contract, used to store prices and retrieve prices through a familiar interface.

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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, rather than continuously receiving data pushes in advance.

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(# 3.3.3 Redstone AI Oracle Machine architecture CLARA

CLARA is a blockchain communication layer framework launched by Redstone, aimed at achieving seamless communication between agents. The CLARA agent protocol consists of three key components: market module, CLARA SDK, and framework plugins.

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

The demand for Oracle Machines in RWA is more complex, involving 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. Building a "second curve" in the RWA scenario is expected to unlock a hundred billion dollar incremental market with reliable off-chain data keys.

( 4.1 Demand for RWA pricing services rise, Oracle Machine becomes the beneficiary

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

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( 4.2 has provided services for the RWA project Oracle Machine

• Chainlink has supported the pricing of tokenized RWAs in Backed Finance.
• Redstone introduces Eurozone government bond ETF data sources to the crypto world.
• Pyth Network has provided for the RWA platform Ondo Finance