Originally published on: December 11, 2024
Decentralized finance (DeFi) is on the rise, creating a surge in the demand for oracles, essential tools that link blockchains to real-world data. This growth is sparking intense competition in the oracle market, challenging established players like Chainlink with new and innovative solutions for data delivery.
In an exclusive interview with Cointelegraph, Marcin Kaźmierczak, the co-founder and COO of RedStone, discussed how DeFi’s rapid evolution is reshaping the oracle landscape. He highlighted the emergence of new players and the adoption of multichain solutions as key trends driving change in the industry.
Kaźmierczak emphasized that the rise of layer-2 networks and alternative chains like TON and Starknet has exposed scalability issues in existing oracle systems. As a result, new, more efficient networks like Berachain, Unichain, and Ink are stepping up to meet the demands of evolving ecosystems.
The debate over how decentralized oracles should be continues, with differing opinions on whether they should be embedded directly onchain. While some advocate for this approach, Kaźmierczak believes it limits innovation and flexibility in protocol design. He suggests leveraging staking technology to distribute security risks while keeping oracles independent and adaptable.
Despite the dominance of Chainlink in the market, Kaźmierczak sees room for challengers due to the fast-paced nature of DeFi. He emphasized RedStone’s focus on delivering value to clients and steady growth, with their total value secured (TVS) increasing by 1,250% year-over-year to $6.3 billion.
Looking ahead, Kaźmierczak predicts a bullish wave in DeFi platforms under the incoming administration of President-elect Donald Trump. With the crypto industry poised for potential growth, the competition among oracle providers is only set to intensify.
