Oracle Machine Track: Finding the Second Rise Curve

The Oracle Machine is one of the cornerstones of the blockchain world, and its core competitiveness is 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 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 US dollars.

Chainlink is the absolute leader in the Oracle Machine sector, with a wealth of data sources and extensive project collaborations; 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, the Oracle Machine will no longer overly rely on providing price feeding services for DeFi projects, and 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 Oracle Machine's data services in the future, becoming a new driving force for Oracle Machine's revenue rise, allowing industry growth from 2 to N.

1. The Development History of Oracle Machine

2014 and earlier

Oracle Machine demand is beginning to emerge.

2015-2016 phase

The co-founder of Ethereum proposed the concept of Oracle Machine. Oraclize launched the first decentralized Oracle Machine service, supporting Ethereum smart contracts in obtaining external data. The Ethereum mainnet went live.

2017-2018 phase

The Chainlink project was established, proposing the concept of a decentralized Oracle Machine network (DON), aimed at solving the single point of failure problem. The demand for Oracles mainly focuses on simple data calls.

phase 2019-2021

The DeFi Summer of 2020 has arrived, and the Oracle Machine provides price feeding services for decentralized applications. Projects like Band Protocol and Tellor have launched, and the competitive landscape is beginning to take shape.

Phase 2022-2023

The Oracle Machine service expands to multi-chain and multi-scenario. Chainlink launches the cross-chain interoperability protocol (CCIP). The Pyth Network mainnet is launched, attracting participation from multiple traditional financial institutions.

Stage 2024-2025

Oracle Machine services expand from DeFi to areas such as gaming, NFTs, and insurance. DePIN applications begin to have more demand for IoT Oracle Machines. The combination of AI and Oracle Machines explores new scenarios for automated execution of smart contracts.

2. Oracle Machine Track Market Scale

By the end of 2024, the total market value of Oracle Machine projects will be $10.55 billion, accounting for 11.8% of the total DeFi market value of $(912.68 billion $). Compared to early 2021, when the market value of Oracle Machines once accounted for more than 25% of DeFi, this proportion has significantly decreased.

Based on the forecast for the DeFi market, the compound annual growth rate from 2025 to 2030 is approximately 53%, and the market value will reach $231 billion in 2030. This article introduces two hypothetical scenarios to estimate the Oracle Machine market space:

• 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 maintains 6-8% of the DeFi market size, it will amount to 13.8-18.4 billion USD by 2030.

3. Major Projects in the Oracle Machine Track

( 3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine sector, 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 project revenue, while the other three types of services will account for a total of 5%.

)# 3.1.1 Chainlink Price Feed Service

Chainlink obtains data from multiple quality data aggregators through several independent nodes, which perform local aggregation and cleansing of the data before submitting it on-chain. Chainlink's aggregation contract further filters and performs a weighted average on the data reported by all nodes, resulting in the final on-chain price for smart contract calls.

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(# 3.1.2 Chainlink Automation

In 2021, Chainlink launched the Keeper trading automation service. In 2024, Automation 2.0 was introduced, which brought cryptographic consensus into decentralized off-chain computation, transferring the expensive computation validation from the blockchain network to the off-chain network.

)# 3.1.3 Chainlink Cross-Chain Protocol

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.

(# 3.1.4 Chainlink Verifiable Random Function

Chainlink VRF will generate one or more random numbers for each random number request, along with a cryptographic proof of the random number. This proof will be published on the chain and verified on the chain, and only after verification will the random number be used.

)# 3.1.5 Chainlink Enterprise Privacy Data Service

Chainlink provides opportunities for enterprises to sell data and API services in a blockchain environment, enabling various functions such as on-chain privacy data, off-chain computation of contract logic, and trading of privacy data on-chain.

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( 3.2 Pyth Network

Pyth Network is an important Oracle Machine project in the Solana ecosystem, with products including price feed services, random number generation services, and fast relay services.

)# 3.2.1 Pyth Network price feed service

Pyth's price feeding service provides corresponding SDKs for different types of public chains such as EVM chains, Solana, and Sui. Once users have installed the SDK, they can call Pyth's price feeding service.

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(# 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 Quick Relay Service

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

( 3.3 Redstone

Redstone is currently the only data provider that uses both Push and Pull modes.

)# 3.3.1 Redstone Push Model

The push model consists of two main parts: off-chain relayers and on-chain contracts. The off-chain relayer is an innovative design that previous Oracle Machine projects did not incorporate as this processing layer.

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.

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: the market module, the CLARA SDK, and framework plugins.

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4. RWA opens the Oracle Machine track's second rise curve

The demand for Oracle Machine 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.

( 4.1 The demand for RWA pricing services is rising, and the Oracle Machine becomes the beneficiary.

Consulting firm McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion. As of March 2025, the total asset scale of RWAs is $247.4 billion ), including stablecoins ###, leaving nearly 10 times the growth space. The Oracle Machine, as an important infrastructure for RWAs, can achieve significant revenue increments.

( 4.2 has provided services for the RWA project Oracle Machine

Multiple mainstream Oracle Machine projects such as Chainlink, Redstone, Pyth Network, Supra, Chronicle Labs, etc. have started to lay out in the RWA field.

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( 4.3 Non-Financial Assets, High-Threshold Off-Chain Data Modeling

Non-financial assets refer to assets that cannot reflect their prices in real-time and need to reflect their price at a certain point in time through methods such as mathematical modeling. For example, real estate, charging piles, photovoltaic components, art, etc. For these 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 reliable on-chain prices or risk assessments.

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

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

To enable the data from off-chain hardware to be brought on-chain, the concept of the Internet of Things Oracle Machine has emerged. Currently, the Internet of Things Oracle Machine is still in the early stages of development, with a limited number of projects.

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( 5.2 Code Oracle Machine, Bittensor is at the right time

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

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( 5.3 Biomolecular Oracle Machine, the infrastructure of Crypto × Biotech

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

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Conclusion

In the future, with the increasing demand for more modalities of on-chain data and the improvement of smart contract performance, RWA is expected to become the main second rise curve in the Oracle Machine track, while specialized vertical Oracle Machine startups will continue to emerge.