Oracle Machine Track: Finding the Second Rise Curve

The Oracle Machine is a key infrastructure that connects on-chain and off-chain data in blockchain systems. Essentially, the core competitiveness of Oracle Machine projects is mainly reflected 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 stability.

It is expected that by 2030, the overall market size of the Oracle Machine track will reach between 13.8 billion and 23.1 billion dollars. Currently, Chainlink is the absolute leader in this field, with a wealth 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 data transmission modes.

In the future, Oracle Machines will no longer overly rely on providing price feeding services for DeFi projects. Real-world assets ( RWA ) are expected to become a strong second rise curve in the Oracle track. In addition, emerging fields such as Internet of Things ( DePIN ), Artificial Intelligence ( AI ), and Decentralized Science ( DeSci ), combined with the data services of Oracle Machines, may also become new drivers for Oracle revenue growth, promoting the industry's diversified development from "2" to "N".

The Development of the Oracle Machine

2014 and earlier: The decentralized prediction market Augur sparked initial demand for Oracle Machines.

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: Chainlink was established, proposing the concept of a decentralized Oracle Machine network (DON), aimed at solving the single point of failure problem.

2019-2021: The DeFi explosion, Oracle Machines became the core external data service providers. Oracle Machine projects outside of Chainlink, such as Band Protocol and Tellor, were successively launched.

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

2024-2025: Oracle Machine services expand from DeFi to areas such as gaming, NFTs, and insurance. The demand for IoT Oracle Machines increases, exploring new scenarios with AI and Oracle Machines.

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. According to predictions by Grand View Research, the DeFi market size will reach $231 billion by 2030. Based on this calculation:

• Optimistic scenario: The Oracle Machine market size will maintain 10% of the DeFi market, reaching 23.1 billion USD by 2030.
• Neutral scenario: The market size of Oracle Machine in the DeFi market is 6-8%, reaching 13.8-18.4 billion USD by 2030.

Main Oracle Machine Project Analysis

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 the project's total revenue.

Main services include:

1. Feed Price Service: Obtains data from high-quality data aggregators through multiple independent nodes, providing it to smart contracts after multiple verifications.
2. Automation Services: Keeper and Automation 2.0 support the automatic execution and optimization of smart contracts.
3. Cross-Chain Protocol ( CCIP ): Achieving cross-chain data transmission and smart contract interaction.
4. Verifiable Random Function ( VRF ): Generates verifiable on-chain random numbers.
5. Enterprise Privacy Data Service: Supports the secure on-chain and transaction of privacy data.

Pyth Network

Pyth Network focuses on financial data and has advantages in transmission speed. Its main features include:

• Supports 65 public chains, making it one of the Oracle Machines that supports the most public chains.
• Play an important role in the Solana ecosystem
• Launching the Fast Relay Service ( Express Relay ), aimed at eliminating on-chain MEV.

Redstone

Redstone is currently the only Oracle Machine that supports both Push and Pull data transmission modes, having integrated over 70 public chains. Its main products include:

1. Push Model: Customize the push data to the chain through off-chain relayers.
2. Pulling Model: The smart contract actively requests the latest off-chain data when needed.
3. AI Oracle Machine architecture CLARA: Achieving seamless communication between agents

RWA Launches Oracle Machine's Second Rise Curve

Real-world assets ( RWA ) are becoming a new battlefield for the extension of Oracle Machine capabilities. The demand for RWA from Oracle Machines includes not only asset valuation but also real-time tracking of physical asset status and on-chain synchronization.

Multiple mainstream Oracle Machine projects have laid out plans in the RWA field:

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

Non-financial assets ( such as real estate, charging piles, photovoltaic components, etc. ) will be an important rise point for future Oracle Machine in off-chain data modeling. These types of assets require more complex data processing and valuation models, which also impose higher demands on the transmission performance of public chains.

Multi-type Data Dedicated Oracle Machine

With the diversified demand for off-chain data in emerging scenarios, Oracle Machines are evolving from "generalized transmission" to "vertical processing." Possible dedicated Oracle Machines in the future include:

1. Internet of Things Data Oracle Machine: Supports DePIN capacity expansion, with Echolink having connected approximately 8 million hardware devices.

2. Code Oracle Machine: can be used in scenarios such as smart contract vulnerability detection, with potential applications like Uniswap's code auditing.

3. Biological Macromolecule Oracle Machine: Supports DeSci development and provides clinical data support for biomedicine projects.

The emergence of these specialized Oracle Machines signifies that the Oracle Machine industry is evolving from a single financial data service to a diversified data infrastructure.

Conclusion

The Oracle Machine is gradually evolving from a "universal data layer" that serves standardized financial protocols into a "multi-modal infrastructure" that supports vertical scenarios. As the integration of blockchain with the real world deepens, the Oracle Machine will face opportunities to process various modal data.