Well-known institutions enter the game: What is unique about the next-generation oracle RedStone?

RedStone, as a modular blockchain oracle provider, successfully raised US$15 million in Series A financing led by Arrington Capital on July 2.

Other investors in this round include Kraken Ventures, White Star Capital, Spartan Group, Amber Group, SevenX Ventures and IOSG Ventures.

In addition, angel investors such as Smokey the Bera and Homme Bera of Berachain, Mike Silagadze, Jozef Vogel and Rok Kopp of Ether.Fi, and Amir Forouzani, Jason Vranek and Christina Chen of Puffer Finance are also involved. Not only that, on July 4, the Zircuit mainnet has undertaken the emerging oracle project Redstone.

With the total value locked in the DeFi market doubling over the past year, especially in the liquidity staking space amassing over $50 billion in assets, RedStone oracles are making a mark on the market with their modular design occupies a unique position.

It can be said that RedStone’s financing not only demonstrates investors’ confidence in its future development, but also marks the further consolidation of its position in the field of blockchain oracles.

01. Next-generation oracle RedStone

RedStone is a modular blockchain oracle, similar to Chainlink and Pyth Network, but it stands out with the unique advantage of modular design.

RedStone founder and CEO Jakub Wojciechowski emphasized that the modular architecture allows RedStone to launch on new networks faster and flexibly adjust traffic according to market demand.

As the wave of liquid rehypothecation tokens rises, RedStone becomes the first oracle to support projects such as Ether.Fi, Renzo, Puffer, and Swell.

The main function of the blockchain oracle is to provide real-world data to smart contracts to ensure that smart contracts can make decisions based on the latest external information when executing. The advantage of a modular oracle is that its components can be updated or replaced independently, ensuring scalability and integration on different blockchains.

RedStone’s integration with the Open Network (TON) is a typical example. Wojciechowski pointed out that TON’s architecture made the integration of oracles very onerous, but the RedStone team spent four months ensuring the smooth completion of the end-to-end integration work.

According to DeFiLlama, RedStone is currently the fifth largest blockchain oracle, with a total value of approximately $3.5 billion.

Founded in 2020 during the Arweave Chain Incubation Program, RedStone currently supports over 60 blockchains, including layer 1 and layer 2 networks such as Ethereum, Base, Arbitrum, and Merlin Chain. In the future, RedStone also plans to support the Berachain and Monad blockchains and will launch functionality as an Active Validation Service (AVS) on EigenLayer.

It is reported that RedStone has been promoting the on-demand method for the past three years and is currently used on more than 40 L1 and L2, ahead of competitors.

In the future, with the Dencun (EIP-4844) Ethereum upgrade, liquidity staking and re-staking, and the addition of L2 as well as Optimistic and ZK aggregation, the demand for reliable price data across the industry will further surge. With its future-proof design, RedStone is poised to remain a leader in this rapidly growing field.

02, The uniqueness of RedStone

RedStone oracle adopts a unique method to store non-standard data on Arweave and transmit it to all EVM-compatible chains.

The oracle serves as a middleware that enables communication between the blockchain and off-chain systems (such as data providers, cloud providers, IoT devices, and payment systems). Smart contracts on various blockchains, including Ethereum, can use data provided by oracles to decide whether to execute a protocol or command. Therefore, platforms and businesses using smart contracts rely directly on oracles to obtain data from the outside world.

However, centralization and third-party oracles are not in line with the value of blockchain technology and decentralization. The uncertainty and asynchrony of external data makes it difficult to reach consensus among nodes.

In addition, the risks caused by direct access to unsafe external environments also deter many projects. This is the so-called oracle problem. The decentralized nature of blockchain makes it impossible to pull or push data from any external system. Blockchain nodes must be kept in isolated sandboxes and therefore cannot directly access traditional services or generate data internally.

RedStone alleviates the problems faced by blockchain projects by providing flexible and affordable oracle solutions.

Its modular design is suitable for DeFi, similar to the L2 of the blockchain, allowing it to provide push and pull oracle data services to multiple EVM and non-EVM ecosystems, Rollup, and various application chains.

RedStone’s data is cryptographically signed by the provider and can be verified on any chain that supports basic cryptographic primitives.

RedStone leverages Arweave’s next-generation blockchain storage to save large amounts of data at low cost, allowing it to process more data with higher update frequency.

Unlike traditional oracles, RedStone’s data is stored on Arweave, and a network of nodes and partners provide them to DeFi projects in the form of a decentralized public cache. EVM-Connector allows this data to be injected into the target chain only when needed, ensuring data integrity and security.

In addition, RedStone allows multiple data providers to enter the blockchain ecosystem, and each data provider can apply different aggregation rules to provide services tailored to the needs of DeFi protocols. RedStone’s design also ensures data integrity, with data providers required to stake RedStone tokens as collateral to ensure they can continue to operate and provide high-quality data.

Through its innovative approach, RedStone not only provides a secure, flexible and efficient alternative to existing oracle solutions, but also brings reliable real-world data support to application scenarios such as DeFi and smart contracts. As the blockchain ecosystem continues to evolve, RedStone will continue to maintain its leadership position in the oracle field.

Summary

RedStone is known as the next generation oracle. Looking at its performance in 2023 and early 2024, the transaction volume data has been very eye-catching.

Of course this is inseparable from the hard work of the RedStone team in the past bear market. Through carefully planned activities, continuous integration cooperation, and continuous polishing and exploration of product innovation, they have become the biggest contributors to the growth of Arweave's transaction volume, and have gradually gained market recognition.

In the first half of 2024, RedStone has delivered good results. We will wait and see whether it is expected to become a leading project on par with Chainlink in the oracle track in the future.

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