Oracle Machine Track: Seeking 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 cornerstones of the blockchain world. From the perspective of first principles, the core competitiveness of Oracle Machine projects mainly manifests in four aspects: the comprehensiveness and credibility of data acquisition, the acquisition of exclusive data and value capture, the security and decentralization of verification mechanisms, and the transmission efficiency and network robustness.

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

In the future, Oracle Machines 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 combined with the data services of Oracle Machines may become new driving forces for Oracle Machine revenue growth, allowing industry growth to shift from 2 to N.

The Development History of Oracle Machine

In 2014 and earlier, the demand for Oracle Machines began to emerge. From 2015 to 2016, Vitalik Buterin, the co-founder of Ethereum, proposed the concept of Oracle Machines, and Oraclize launched the first decentralized Oracle Machine service. From 2017 to 2018, the Chainlink project was established, introducing the concept of a decentralized Oracle Machine network. 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 extend from DeFi to fields such as gaming, NFTs, and insurance.

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 space for 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 USD by 2030.

Main Projects in the Oracle Machine Track

The current landscape of the Oracle Machine industry can be described as dominated by one player. Chainlink is the absolute leader in this field in terms of token market capitalization and TVS. As of March 2025, the TVS of the Chainlink project is $31 billion, accounting for 53.3% of the total TVS of the entire Oracle Machine sector, with a token market capitalization of $9.6 billion, making up 76.9% of the total market capitalization of the entire Oracle Machine sector. Beyond Chainlink, projects like Pyth Network, UMA, and API3 also occupy a place in the Oracle Machine sector thanks to their advantages in low latency, verification mechanisms, and data acquisition.

Chainlink

Chainlink is the absolute leader in the Oracle Machine sector, and the project was founded in 2017. Chainlink provides services such as price feeds, automation, verifiable random functions, and cross-chain operations. In 2024, in terms of revenue composition, price feed service revenue accounts for the highest proportion of project revenue, making up 95% of cumulative revenue.

Chainlink's main services include:

1. Feed price service: Obtain data from multiple high-quality data aggregators through several independent nodes, perform local aggregation and cleaning, and then submit it to the blockchain.

2. Automation Service: The Keeper trading automation service can automatically perform actions triggered by specific events. Automation 2.0, launched in 2024, introduces cryptographic consensus, improving dApps runtime, reducing costs, and simplifying user experience.

3. Cross-chain Protocol: CCIP provides smart contract developers with a general infrastructure with computational capabilities, allowing data and smart contract instructions to be transmitted across various blockchain networks.

4. Verifiable Random Function: Generate one or more random numbers for each random number request and attach an encrypted proof.

5. Enterprise Privacy Data Services: Providing enterprises with the opportunity to sell data and API services to the blockchain environment, achieving functions such as on-chain privacy data, off-chain contract logic computation, and on-chain trading of privacy data.

Pyth Network

Pyth Network is a project strongly supported by the Solana Foundation, with fast price update frequency being one of its important tags. Pyth Network supports a total of 65 public chains, second only to Redstone. Its main price feeding services still occur on the Solana chain.

The main services of Pyth Network include:

1. Price Feeding Service: Provides corresponding SDKs for different types of public chains such as EVM chains, Solana, Sui, etc.

2. Random Number Generation Service: Pyth Entropy is a random number generation product launched by Pyth Network.

3. Fast Relay Service: The latest product launched in July 2024, aimed at eliminating on-chain MEV.

Redstone

Redstone has currently integrated over 70 public chains, making it the project with the most integrated public chains among Oracle Machine projects. Redstone's products include push models and pull models, as well as the new field of AI Oracle Machine. Redstone is currently the only data provider that uses both Push and Pull models.

The main services of Redstone include:

1. Push Model: Composed of two parts, off-chain relayers and on-chain contracts.

2. Pulling Model: On-chain smart contracts actively call the Oracle Machine interface when data is needed.

3. AI Oracle Machine Architecture CLARA: A blockchain communication layer framework designed to achieve seamless communication between agents.

RWA opens the second rise curve of the Oracle Machine track

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 billion-dollar incremental market with reliable off-chain data keys.

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

• Chainlink has supported the price feed of tokenized RWA for Backed Finance.
• Redstone introduces Eurozone government bond ETF data source to the crypto world.
• Pyth Network has provided pricing services for the RWA platform Ondo Finance.
• Supra public chain's distributed Oracle Machine protocol (DORA)2.0 provides RWA pricing 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 the asset's status and influencing factors, and combining this information with mathematical models to convert it into reliable on-chain prices or risk assessments, thereby supporting the valuation and management of non-financial RWA tokens.

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

In the future, the Oracle Machine industry will transition from "unified price feeding" to a parallel development state of "multiple types of specialized Oracle Machines," entering the expansion phase of "from 2 to N."

IoT Data Oracle Machine

The IoT Oracle Machine allows device users to monitor device data in real-time. Currently, the IoT Oracle Machine is still in the early stages of development, and the blockchain oracle deployed on Solana, Echolink, is one of the few oracles designed for DePIN.

Code Oracle Machine

The underlying data uploaded to the chain is still program code, and in the future, there may be dedicated Oracle Machines to upload off-chain code to the chain. One possible scenario is DEX code vulnerability checks.

Biomolecular Oracle Machine

If more and more biotech projects in the future finance through on-chain funding channels to develop biomolecules, then the relevant compound reaction data can help investors determine whether a project is worth investing in.

Conclusion

With the increasing demand for more modes of data on-chain and the improvement of smart contract performance, RWA is expected to become the main second rise curve in the Oracle Machine track, while vertical specialized Oracle Machine startup projects will continue to emerge. The Oracle Machine needs some business scenario reconstruction in terms of front-end data verification and back-end smart contract execution.