Oracle Machine: Finding the Second Rise Curve

The Oracle Machine is one of the cornerstones of the blockchain world, with its core competitiveness 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 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 rich source of data and extensive project collaborations; Pyth has advantages in transmission speed and the acquisition of financial data; Redstone is currently the only Oracle Machine that offers both Push and Pull pricing methods.

In the future, the Oracle Machine will no longer rely excessively on providing pricing 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 new driving forces for Oracle Machine's revenue rise, allowing industry growth from 2 to N.

1. The Development History of the Oracle Machine

2014 and earlier: Oracle Machine demand began to emerge, Augur project development.

2015-2016: Ethereum co-founder Vitalik Buterin proposed the concept of Oracle Machine, and Oraclize launched the first decentralized oracle service.

2017-2018: The Chainlink project was established, proposing the concept of a decentralized Oracle Machine network (DON).

2019-2021: The DeFi Summer arrives, the demand for Oracle Machines surges, and multiple projects such as Band Protocol and Tellor are 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 fields such as gaming, NFTs, and insurance. The demand for IoT Oracle Machines increases with DePIN applications, and new scenarios are explored through the combination of AI and Oracle Machines.

2. Oracle Machine track market size

By the end of 2024, the total market value of Oracle Machine projects is expected to 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, the Oracle Machine market size is expected in the following two scenarios:

• Optimistic scenario: The Oracle Machine market size will maintain 10% of the DeFi market size, reaching 23.1 billion USD 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.

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 the project's income.

3.1.1 Chainlink Price Feeding Service

Chainlink obtains data from multiple high-quality data aggregators through several independent nodes, which is then submitted on-chain after local aggregation and cleansing.

3.1.2 Chainlink Automation

In 2021, the Keeper trading automation service was launched, and in 2024, Automation 2.0 was introduced, bringing in cryptographic consensus, improving performance, and reducing costs.

3.1.3 Chainlink Cross-Chain Protocol

The Cross-Chain Interoperability Protocol (CCIP) was released in 2021, providing smart contract developers with the ability to transfer cross-chain data and instructions.

3.1.4 Chainlink Verifiable Random Function

Using Goldberg's Verifiable Random Function (VRF) to generate random numbers and attach cryptographic proof.

3.1.5 Chainlink Enterprise Privacy Data Services

Provide peer-to-peer transmission services for private data for enterprises, having completed pilot programs with SWIFT and UBS Group.

3.2 Pyth Network

Pyth Network supports 65 public chains and occupies an important position in the Solana ecosystem. Its pricing service is mainly focused on the Solana chain, competing with Chainlink on Ethereum.

3.3 Redstone

Redstone has completed the integration of over 70 public chains and is currently the only data supplier that uses both Push and Pull modes.

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

The demand for Oracle Machine in RWA is more complex, including real-time tracking of asset valuation and the status of physical assets. By 2030, tokenized real-world assets are expected to reach $20 trillion.

Multiple Oracle Machine projects have begun to provide services for RWA:

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

The pricing of non-financial assets may become a significant rise point for Oracle Machines on the Solana blockchain in the future.

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

5.1 Internet of Things Data Oracle Machine

Support DePIN capacity expansion, aitos.io proposes the Oracle Machine paradigm BoAT3 based on IoT data. Echolink is one of the few Oracle Machines designed for DePIN.

5.2 code Oracle Machine

Possible code vulnerability checks for DEX, such as Uniswap's bug bounty program.

5.3 Biomolecular Oracle Machine

Support the development of DeSci and provide on-chain investors with evaluation data for biomedical projects.

The Oracle Machine is gradually evolving from the "universal data layer" that serves standardized financial protocols to a "multimodal infrastructure" that supports vertical scenarios.

Conclusion

As the integration between the blockchain world and the real world deepens, Oracle Machines face opportunities and challenges in processing various modal data. 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.