Oracle Machine Track: From Decentralized Finance Data Bridges to Diversified Infrastructure

The Oracle Machine is a key service mechanism in blockchain systems, used to bring off-chain data into smart contracts, and is one of the cornerstones of the blockchain world. From a first principles perspective, the core competitiveness of Oracle Machine projects mainly reflects 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.

1. The Development History of Oracle Machine

In 2014 and earlier, the demand for Oracle Machines began to emerge. From 2015 to 2016, Ethereum co-founder Vitalik Buterin proposed the concept of Oracle Machines, emphasizing their key role in enabling smart contracts to access external data. From 2017 to 2018, the Chainlink project was established, introducing the concept of a decentralized Oracle Machine network (DON). From 2019 to 2021, DeFi exploded, and Oracle Machines became core external data service providers. From 2022 to 2023, Oracle Machine services expanded to multi-chain and multi-scenario applications. From 2024 to 2025, Oracle Machine services will extend from DeFi to areas such as gaming, NFTs, and insurance.

2. Oracle Machine Track Market Size

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 market value of Decentralized Finance. Based on Grand View Research's forecast of the DeFi market, this article introduces two hypothetical scenarios of "stable share" and "declining share" to estimate the market space for Oracle Machines:

• Optimistic scenario: will reach 23.1 billion USD by 2030.
• Neutral scenario: It will be 13.8-18.4 billion dollars by 2030.

3. Main Projects in the Oracle Machine Track

3.1 Chainlink

Chainlink is the absolute leader in the Oracle Machine track, 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.

3.2 Pyth Network

Pyth Network is an Oracle Machine project that is a key focus of support within the Solana ecosystem, known for its low latency and financial data acquisition.

3.3 Redstone

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

4. RWA Opens the Second Growth Curve of the Oracle Machine Track

The demand for Oracles in RWA is more complex, involving not only asset valuation but also real-time tracking of physical asset status and on-chain synchronization. McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion. As an important infrastructure for RWA, Oracles can achieve significant revenue growth.

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

5.1 Internet of Things Data Oracle Machine

The IoT Oracle Machine allows device users to monitor device data in real-time. Echolink is one of the few Oracle Machines designed for DePIN, having completed connections for approximately 8 million hardware devices.

5.2 Oracle Machine

The code Oracle Machine can find the optimal solution for different white hat hackers to fix the code through environmental simulation and testing, and upload the optimal code to the requester.

5.3 Biological Macromolecule Oracle Machine

The Oracle Machine for biomacromolecules can effectively reduce the understanding barriers for on-chain investors in the biopharmaceutical industry through a decentralized approach.

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 growth curve in the Oracle Machine track, while vertical specialized Oracle Machine startup projects will continue to emerge.