Oracle Machine Track: Exploring the Second Rise Curve

The Oracle Machine is a service mechanism in the blockchain system, used to bring off-chain data into smart contracts, and is one of the cornerstones of the blockchain world. The core competitiveness of Oracle Machine projects mainly reflects in 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.

It is expected that by 2030, the overall market size of the Oracle Machine sector should be between $13.8 billion and $23.1 billion. 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, Oracle Machines will no longer overly rely on providing pricing services for DeFi projects. RWA is expected to become a strong second rise curve in the Oracle Machine track. DePIN, AI, and DeSci businesses have the opportunity to integrate with the data services of Oracle Machines in the future, becoming new momentum for the growth of Oracle Machine revenue, allowing industry growth to shift from 2 to N.

1. The Development History of Oracle Machine

In 2014 and earlier, the demand for Oracle Machines began to emerge. From 2015 to 2016, Ethereum co-founder Vitalik Buterin proposed the concept of Oracle Machines, and Oraclize launched the first decentralized Oracle Machine service. From 2017 to 2018, the Chainlink project was established, proposing the concept of a decentralized Oracle Machine network (DON). From 2019 to 2021, DeFi Summer arrived, leading to an explosion in the demand for Oracle Machines. From 2022 to 2023, Oracle Machine services expanded to multi-chain and multi-scenario applications. From 2024 to 2025, Oracle Machine services will expand from DeFi to areas 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 market value of DeFi. Based on Grand View Research's forecast for the DeFi market, this article introduces two hypothetical scenarios, "stable proportion" and "declining proportion," to estimate the market space for Oracle Machine:

• Optimistic scenario: If the Oracle Machine market size can maintain 10% of the DeFi market size, it will reach $23.1 billion 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. Main Projects in the Oracle Machine Track

3.1 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, price feed service revenue will account for 95% of the project's cumulative revenue.

Chainlink's price feed service obtains data from multiple independent nodes and high-quality data aggregators, aggregates and cleans it, and then submits it on-chain. Chainlink's automated service Keeper can automatically execute operations triggered by specific events. Chainlink's cross-chain interoperability protocol (CCIP) provides a general infrastructure with computational capabilities for smart contract developers. Chainlink's verifiable random function (VRF) uses Goldberg's VRF to generate random numbers for each random number request and attach cryptographic proofs.

In addition, Chainlink also provides enterprises with the opportunity to sell data and API services to blockchain environments, and to implement 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 an Oracle Machine project that is a key focus of support within the Solana ecosystem, supporting 65 public chains with a fast price update frequency. The Pyth price feeding service provides corresponding SDKs for different types of public chains, including EVM chains, Solana, and Sui. Pyth Entropy is its launched random number generation product. In July 2024, the Pyth team launched the fast relay service (Express Relay), aimed at eliminating on-chain MEV.

3.3 Redstone

Redstone has currently completed the integration of over 70 public chains, making it the project with the most integrated public chains among Oracle Machine projects. Redstone's products include the Push Model ( and Pull Model ), as well as the AI Oracle Machine. Redstone is currently the only data supplier that uses both Push and Pull models simultaneously.

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

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

The demand for Oracle Machines 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. Consulting firm McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion.

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

• Chainlink has supported the pricing of tokenized RWAs for Backed Finance.
• Redstone introduces Eurozone government bond ETF data source to the crypto world
• Pyth Network has provided price feeding services for the RWA platform Ondo Finance.
• Supra public chain's distributed Oracle Machine protocol ( DORA ) 2.0, provides RWA price feeding services.
• Chronicle Labs launched the RWA Oracle Machine "The Verified Asset Oracle"

For non-financial assets, the Oracle Machine needs to provide more complex services, such as connecting to data sources that can reflect asset status and influencing factors, and combining this information with mathematical models to convert it into credible on-chain prices or risk assessments.

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 IoT Oracle Machine allows device users to monitor device data in real time. The BoAT3 proposed by the aitos.io project team is a PoPow) physical proof of work### paradigm. Echolink is one of the few Oracles designed for DePIN, and the project has completed connections for approximately 8 million hardware devices.

( 5.2 Code Oracle Machine, Bittensor is timely

Bittensor is currently one of the most successful examples of the combination of AI and blockchain. In the future, there may be dedicated Oracle Machines to upload off-chain code to the chain, such as providing services for code vulnerability checks for DEX.

![Underestimated High-Growth Track: Finding Oracle Machine's Second Rise Curve])https://img-cdn.gateio.im/webp-social/moments-01a234ee836c4c3a6f20488269b3d681.webp###

( 5.3 Biological Macromolecule Oracle Machine, Crypto × Biotech Infrastructure

If more and more Biotech project parties finance through on-chain funding channels in the future to develop biomacromolecules, then the relevant compound reaction data can help investors determine whether a project is worth investing in. An Oracle Machine dedicated to biomacromolecules can effectively reduce the understanding barriers for on-chain investors in the biopharmaceutical industry through a decentralized approach.

![Undervalued High-Growth Track: Finding the Oracle Machine's Second Rise Curve])https://img-cdn.gateio.im/webp-social/moments-61b30e4573f049ebe0132d431acec34d.webp###

Conclusion

With the increasing demand for more modalities of data on-chain and the enhancement of smart contract performance, RWA is expected to become the main second rise curve in the Oracle Machine track, while specialized vertical Oracle Machine startup projects will continue to emerge. Oracles are gradually evolving from a "general data layer" that serves standardized financial protocols to a "multi-modal foundation" that supports vertical scenarios.