The second rise curve of the Oracle Machine track: from Decentralized Finance to RWA

The Oracle Machine is a service mechanism in the blockchain system that brings off-chain data into smart contracts, and it is one of the infrastructures of the blockchain world. Essentially, the core competitive advantages of Oracle Machine projects are 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. Currently, Chainlink is the absolute leader in the Oracle Machine sector, with a rich data source and extensive project collaborations. Pyth has advantages in transmission speed and financial data acquisition. Redstone is currently the only Oracle Machine that has 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. Real world assets (RWA) are expected to become a strong second rise curve in the Oracle Machine track. In addition, emerging fields such as the Internet of Things, artificial intelligence, and decentralized science will have opportunities to combine with the data services of the Oracle Machine in the future, becoming a new driving force for the revenue growth of the Oracle Machine, pushing industry growth from 2 to N.

The Development History of Oracle Machine

2014 and earlier: The decentralized prediction market Augur emerged, and the demand for Oracle Machines began to appear.

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

2019-2021: The DeFi Summer arrives, and the demand for Oracle Machines explodes. Oracle Machine projects such as Band Protocol and Tellor are launched one after another, aside from Chainlink.

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 Decentralized Finance to gaming, NFTs, insurance, and other fields. The demand for IoT Oracle Machines increases. The combination of AI and Oracle Machines explores new scenarios for automated execution of smart contracts.

Oracle Machine track market size

By the end of 2024, the total market value of Oracle Machine projects is $10.55 billion, accounting for 11.8% of the total market value of Decentralized Finance. Based on Grand View Research's forecast for the DeFi market, this article proposes two hypothetical scenarios to estimate the market space for Oracle Machine:

• Optimistic scenario: The Oracle Machine market size will maintain 10% of the Decentralized Finance market size, reaching $23.1 billion by 2030.
• Neutral scenario: The Oracle Machine market size remains at 6-8% of the Decentralized Finance market size, reaching 13.8-18.4 billion USD by 2030.

Main Projects in the Oracle Machine Track

Chainlink

Chainlink is the absolute leader in the Oracle Machine space, providing 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 cumulative revenue.

Chainlink's main services include:

1. Price feeding service: Acquire data from high-quality data aggregators through multiple independent nodes, perform local aggregation and cleansing, and then submit it on-chain.

2. Automation Services: Including Keeper trading automation services and Automation 2.0, the latter introduces cryptographic consensus, transferring computational verification to off-chain networks.

3. Cross-Chain Protocol: CCIP provides smart contract developers with a general infrastructure with computing capabilities, capable of transmitting data and smart contract instructions across various blockchain networks.

4. Verifiable Random Function: Generate random numbers for each random number request and attach cryptographic proof, to be used after on-chain verification.

5. Enterprise Privacy Data Service: Providing enterprises with the opportunity to sell data and API services in a blockchain environment, enabling functionalities such as on-chain privacy data, off-chain computation of contract logic, and on-chain transactions of privacy data.

Pyth Network

Pyth Network is an Oracle Machine project that is a key focus of support within the Solana ecosystem, with main features including:

1. The frequency of price updates is one of its important labels.
2. Supports 65 public chains, second only to Redstone.
3. Dominating the Solana chain, similar to Chainlink's position on Ethereum.

The main services of Pyth Network include:

1. Price feeding service: Provide corresponding SDKs for different types of public chains such as EVM chains, Solana, Sui, etc.
2. Random Number Generation Service: Pyth Entropy, easy to use, requires users to pay fees in Gas Token.
3. Express Relay Service: Express Relay, aimed at eliminating on-chain MEV (Maximum Extractable Value).

Redstone

Redstone is a multi-chain Oracle Machine project that has completed integration with over 70 public chains. Its main features include:

1. It is currently the only data provider that simultaneously uses both push and pull models.
2. Launched the AI Oracle Machine architecture CLARA, aimed at achieving seamless communication between agents.

The main services of Redstone include:

1. Push model: Composed of off-chain relayers and on-chain contracts, it realizes the customization and automation of price feeding services.
2. Pulling the model: On-chain smart contracts actively call the Oracle Machine interface when data is needed, improving gas efficiency and simplifying dApp data access.
3. AI Oracle Machine architecture CLARA: consists of three key components: market module, CLARA SDK, and framework plugin, providing a communication layer for mainstream AI Agent architecture.

RWA opens the second rise curve of the Oracle Machine track

As the DeFi market becomes increasingly saturated, the Oracle Machine industry is starting to seek new growth points. The rise of real-world assets (RWA) provides new opportunities for the Oracle Machine. The demand for RWAs from the Oracle Machine is more complex, involving not only asset valuation but also real-time tracking of physical asset status and on-chain synchronization.

RWA feed price service demand rise

The integration of traditional finance and crypto technology is one of the biggest narratives of 2024. Real-time feedback on off-chain asset prices requires the bridge of the Oracle Machine. McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion. As of March 2025, the total asset size of RWA is $247.4 billion (including stablecoins), with nearly 10 times growth potential remaining.

has provided services for the RWA project Oracle Machine

1. Chainlink: Supports Backed Finance tokenized RWA pricing.
2. Redstone: Introduces Eurozone Government Bond ETF data source to the crypto world.
3. Pyth Network: Provides price feed services for the RWA platform Ondo Finance.
4. Supra: Its distributed Oracle Machine protocol DORA 2.0 provides RWA pricing services.
5. Chronicle Labs: Launched the RWA Oracle Machine "The Verified Asset Oracle".

high-threshold off-chain data modeling for non-financial assets

For the Oracle Machine, RWA can be divided into financial assets and non-financial assets. The valuation of non-financial assets (such as real estate, charging piles, photovoltaic components, artworks, etc.) requires more complex services, including access to data sources that can reflect the asset's status and influencing factors, and combining this information with mathematical models to convert it into credible on-chain prices or risk assessments.

Multi-type Data Dedicated Oracle Machine: Industry Growth Curve from 2 to N

As on-chain demand expands, the service capabilities of the Oracle Machine are transitioning from "generalized transmission" to "vertical processing". In the future, the industry will move from "unified pricing feeds" to a state of parallel development of "multi-type dedicated oracles".

IoT data Oracle Machine

The Internet of Things Oracle Machine allows device users to monitor device data in real-time. The aitos.io project team proposed the Oracle Machine paradigm BoAT3 based on IoT data. Echolink, deployed on Solana, is one of the few Oracle Machines designed for DePIN.

Code Oracle Machine

Bittensor is a successful example of the combination of AI and blockchain, connecting the demand side of on-chain algorithm problems with off-chain AI models. In the future, there may be specific Oracle Machines that upload off-chain code to the on-chain, such as code vulnerability checks for DEX.

Biomolecular Oracle Machine

With the rise of the DeSci narrative, specialized Oracle Machines for biomolecules may emerge in the future, helping on-chain investors assess the value of biopharmaceutical projects. Medical journals or databases 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 "general data layer" that serves standardized financial protocols to a "multimodal infrastructure" that supports vertical scenarios. 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. As the demand for more modal data on-chain increases, and with the improvement of smart contract performance, the Oracle Machine industry will usher in new development opportunities.