Oracle Machine Track: Exploring the Second Rise Curve

The Oracle Machine, as one of the cornerstones of the blockchain world, has its core competitiveness 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 verification mechanisms, and the transmission efficiency and network robustness. It is expected that by 2030, the overall market size of the Oracle Machine industry will reach between 13.8 billion to 23.1 billion USD.

Currently, Chainlink is the absolute leader in the Oracle Machine field, boasting a rich array of data sources and extensive project collaborations. Pyth has advantages in transmission speed and financial data acquisition, while Redstone is 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 pricing services for DeFi projects, and RWA is expected to become a strong second rise curve in the Oracle Machine track. In addition, emerging businesses such as DePIN, AI, and DeSci also have the opportunity to combine with the data services of the Oracle Machine, becoming a new driving force for the growth of Oracle Machine revenue.

Oracle Machine Development History

The development of Oracle Machine can be traced back to 2014, when the Augur project first demonstrated the need for Oracle Machines. In 2015, Ethereum co-founder Vitalik Buterin officially proposed the concept of Oracle Machines. In 2017, the Chainlink project was established, proposing the concept of a decentralized Oracle Machine network (DON). During the DeFi Summer of 2020, Oracle Machines experienced explosive rise as the core external data service providers for DeFi.

In 2022-2023, Oracle Machine services expanded to multiple chains and scenarios. Chainlink launched the cross-chain interoperability protocol (CCIP), supporting cross-chain data transmission and smart contract interaction. The Pyth Network mainnet went live, attracting participation from multiple traditional financial institutions.

In 2024-2025, Oracle Machine services will expand from DeFi to areas such as gaming, NFTs, and insurance. The demand for IoT Oracle Machines will increase with the emergence of DePIN applications. The combination of AI and Oracle Machines is also exploring new scenarios for the automated execution of smart contracts.

Oracle Machine track market scale

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. According to Grand View Research's forecast, the compound annual growth rate of the DeFi market from 2025 to 2030 is approximately 53%, and the market value will reach $231 billion by 2030.

Based on this, we make two assumptions about the Oracle Machine market space:

• 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.

Major Projects in the Oracle Machine Track

Currently, the Oracle Machine industry is in a "monopoly" pattern. As of March 2025, the TVS of the Chainlink project is $31 billion, accounting for 53.3% of the total TVS in the Oracle Machine track, with a token market value of $9.6 billion, accounting for 76.9%. In addition, projects like Pyth Network, UMA, and API3 have also secured their place in the Oracle Machine track with their respective advantages.

Chainlink

Chainlink, as the absolute leader in the Oracle Machine sector, provides 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 total revenue.

Chainlink's price feeding service obtains data from multiple independent nodes that source information from high-quality data aggregators. After local aggregation and cleansing, the data is submitted on-chain. Chainlink's aggregation contract further filters and calculates the weighted average of the data reported by all nodes to derive the final on-chain price for smart contract calls.

In 2024, Chainlink launched Automation 2.0, introducing cryptographic consensus, moving expensive computational verification from the blockchain network to off-chain networks. This upgrade is expected to improve the runtime of dApps, reduce costs, and simplify the user experience.

In 2021, Chainlink released the cross-chain interoperability protocol (CCIP), providing smart contract developers with a general infrastructure with computational capabilities, able to transmit data and smart contract instructions across various blockchain networks.

In addition, Chainlink also provides a verifiable random function ( VRF ) service, generating one or more random numbers for each random number request, along with a cryptographic proof of the random numbers.

In terms of enterprise privacy data services, Chainlink can provide enterprises with the opportunity to sell data and API services to blockchain environments, and achieve functionalities such as on-chain privacy data, off-chain computation of contract logic, and on-chain trading of privacy data.

Pyth Network

Pyth Network is an Oracle Machine project focused on financial data, with its main advantages being low latency and exclusivity of data. Pyth does not set up a node service provider role, but is directly supplied by multiple financial institutions as primary data providers.

Pyth supports 65 public chains, making it one of the Oracle Machines that supports the most public chains. However, its main price feeding service still occurs on the Solana chain. According to Dune data analysis, the interaction numbers of Chainlink and Pyth on Ethereum and Solana have formed certain barriers, making it difficult for each to expand market share on the other's public chain.

In July 2024, Pyth launched the fast relay service (Express Relay), aimed at eliminating on-chain MEV( maximum extractable value). This service adds a relayer to 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.

Redstone

Redstone is currently the only data provider that adopts both Push and Pull modes, having completed integration with over 70 public chains.

The Redstone push model consists of two parts: off-chain relayers and on-chain contracts. The off-chain relayer is an innovative design that pushes prices based on defined conditions, enabling customization and automation of price feeding services.

The pull model allows on-chain smart contracts to actively call the Oracle Machine interface when data is needed, requesting the latest off-chain data from Redstone. This approach maximizes gas efficiency while simplifying data access for dApps.

In January 2025, Redstone launched the CLARA( blockchain communication layer framework ), aiming to achieve seamless communication between agents. CLARA consists of three key components: market module, SDK, and framework plugins, providing a communication layer for mainstream AI Agent architectures.

RWA Opens the Oracle Machine Track's Second Rise Curve

With the integration of traditional finance and cryptographic technology, RWA( real-world assets ) have become a new battleground for the extension of Oracle Machine capabilities. Oracles not only need to provide asset valuation but also need to achieve real-time tracking of physical asset status and on-chain synchronization.

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

Currently, multiple mainstream Oracle Machine projects have begun to layout in the RWA field:

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

In the future, the development of Oracle Machine in the RWA field will present two paths: one is to continue the DeFi logic, strengthening the on-chain 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.

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

With the expansion of on-chain demand, the service capability of the Oracle Machine is shifting from "generalized transmission" to "vertical processing". In the future, the industry will move from "unified price feeding" to a state of parallel development of "multiple types of specialized Oracle Machines".

Internet of Things data Oracle Machine

The Internet of Things Oracle Machine allows device users to monitor data conditions in real time. As early as 2023, the aitos.io project team proposed the Oracle Machine paradigm BoAT3 based on IoT data. Currently, Echolink deployed on Solana is one of the few Oracle Machines specifically designed for DePIN, having completed connections for about 8 million hardware devices.

Code Oracle Machine

With the success of projects like Bittensor, there may be dedicated oracles in the future that upload off-chain code to the blockchain. These oracles can find the optimal code correction solutions for DEX projects like Uniswap through environmental simulation and testing, thereby improving code audit efficiency.

Biomolecular Oracle Machine

With the rise of the DeSci narrative, there may be dedicated Oracle Machines for biomolecules in the future. These Oracle Machines can effectively reduce the understanding barriers for on-chain investors in the biopharmaceutical industry through a decentralized approach. Medical journals or databases such as BMJ Journals can serve as data nodes for biomolecule Oracle Machines, providing data support for the token value of biomolecules.

Conclusion

The Oracle Machine is gradually evolving from a "universal data layer" that serves standardized financial protocols to a "multimodal infrastructure" that supports vertical scenarios. In the future, as the demand for more modal data on-chain increases and the performance of smart contracts improves, RWA is expected to become the primary second rise curve in the Oracle Machine track. At the same time, vertical specialized Oracle Machine startup projects will continue to emerge, driving the Oracle Machine industry from "2" to "N".