Development and Prospects of the Oracle Machine Track: Finding the Second Rise Curve

The Oracle Machine is a key infrastructure that connects on-chain smart contracts with off-chain data in a blockchain system. Essentially, the core competitiveness of Oracle Machine projects is reflected in four aspects: the comprehensiveness and credibility of data acquisition, the value capture of exclusive data, the security and decentralization of the verification mechanism, and the transmission efficiency and network stability.

With the continuous development of the blockchain industry, the application scenarios of Oracle Machine are gradually expanding from the single DeFi price feed to diversified directions such as RWA, DePIN, AI, and DeSci. This trend not only brings new rise opportunities for Oracle Machine but also raises higher demands on its service capabilities.

1. The Development History of Oracle Machine

The development of the Oracle Machine can be roughly divided into the following stages:

2014 and earlier: Oracle Machine demand began to emerge, projects like Augur started to explore.

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

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

2019-2021: The DeFi Summer erupted, and the demand for Oracle Machines surged, with multiple projects such as Band Protocol and Tellor being launched one after another.

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

2024-2025: The application fields of Oracle Machine will further expand, involving games, NFTs, insurance, etc. The demand for Oracle Machines in IoT will increase with DePIN, exploring new scenarios through the integration of AI and Oracle Machines.

2. Oracle Machine Track Market Size

Based on the predictive data of the DeFi market, this article provides the following estimation of the Oracle Machine market size:

• Optimistic scenario: The Oracle Machine market size maintains 10% of the DeFi market size, reaching 23.1 billion USD by 2030.

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

3. Major Projects in the Oracle Machine Track

The current landscape of the Oracle Machine industry can be described as "one company dominates." Chainlink is the absolute leader in both token market capitalization and Total Value Secured (. As of March 2025, Chainlink's TVS is $31 billion, accounting for 53.3% of the total TVS in the entire Oracle Machine sector, and its token market capitalization is $9.6 billion, accounting for 76.9% of the total market capitalization.

In addition to Chainlink, projects such as Pyth Network, UMA, and API3 have also secured a place in the Oracle Machine space due to their advantages in low latency, verification mechanisms, and data acquisition.

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) 3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine track, founded in 2017. Its main products include:

• Price feeding service ### Data Feed (: accounts for 95% of revenue, mainly serving DeFi protocols
• Automated Services ) Automation (: Accounts for 2% of income
• Verifiable Random Function ) VRF (: accounts for less than 1% of revenue
• Cross-chain operation ) CCIP (: accounts for 2% of the revenue

Chainlink is also exploring enterprise privacy data services, providing data and API services for institutions in a blockchain environment.

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) 3.2 Pyth Network

Pyth Network is an Oracle Machine project that is a key focus of support in the Solana ecosystem, known for its low latency and financial data acquisition. It currently supports 65 public chains, but its main price feed services are still concentrated on the Solana chain.

The core products of Pyth Network include:

• Feed price service: provides SDK for different public chains such as EVM chains, Solana, Sui, etc.
• Random Number Generation Service: Pyth Entropy
• Express Relay Service ###: Aimed at eliminating on-chain MEV

( 3.3 Redstone

Redstone is currently the Oracle Machine project with the most integrated public chains, having completed integration with over 70 public chains. Its features include the simultaneous use of the )Push### and (Pull) data acquisition modes.

Redstone's main products include:

• Push Model: Customized data push through off-chain relayers
• Pull model: On-chain contract actively calls to obtain the latest data
• AI Oracle Machine architecture CLARA: achieving seamless communication between agents

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

With the accelerated integration of traditional finance and crypto technology, RWA( real-world assets ) are becoming a new rise point for the Oracle Machine. The application of the Oracle Machine in the RWA field is mainly reflected in the following aspects:

1. Provide pricing services for RWA projects, such as Chainlink supporting bTokens of Backed Finance, and Redstone introducing Eurozone government bond ETF data.

2. Off-chain data modeling of non-financial assets, such as real estate, charging piles, photovoltaic components, and other assets that require complex valuation models.

3. High-performance public chains ( like Solana ) have advantages in processing real-time data of non-financial assets and may become important carriers for future RWA Oracle Machine.

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

With the diversification of on-chain application scenarios, Oracle Machines are transitioning from "generalized transmission" to "vertical processing", building dedicated systems for specific types of data. Possible specialized Oracle Machines that may emerge in the future include:

1. Internet of Things Data Oracle Machine: Serving the DePIN industry, such as Echolink has completed approximately 8 million hardware device connections.

2. Code Oracle Machine: Potential applications include smart contract vulnerability detection, which may replace traditional code review platforms.

3. Biological Macromolecule Oracle Machine: Providing clinical data support for DeSci projects, reducing the understanding barriers for on-chain investors in the biopharmaceutical industry.

Conclusion

The Oracle Machine is gradually evolving from a "universal data layer" that serves standardized financial protocols to a "multimodal infrastructure" supporting vertical scenarios. RWA is expected to become the main second rise curve in the Oracle Machine track, while specialized Oracle Machine startup projects will continue to emerge. As the demand for more modal data on-chain increases and the performance of smart contracts improves, the Oracle Machine industry will usher in a new round of innovation and development opportunities.