Top 7 Blockchain Oracles for 2024
Without oracles, blockchains would have been disconnected from the outside world. Oracles bring data from external sources to the blockchain and vice versa to enable various use cases.
Think of any type of data – weather, demographics, business metrics, or something else – oracle networks can bring this data on-chain. Similarly, they can broadcast data across blockchains, improving interoperability.
For example, the popular prediction platform Polymarket uses oracles to display the results of sports events or presidential elections, while users place bets. In financial applications, oracles help track the prices of assets, such as gold and stocks, and represent them on-chain. An example is the Paxos Gold (PAXG) stablecoin, which represents gold on the blockchain.
Depending on their technological solutions and mechanisms, oracles offer varying levels of security, scalability, and decentralization. In one of our previous articles, we discussed the role of blockchain oracles and how they function.
Here, we’ll look into 7 growing oracle networks in 2024 and how they work.
1. UMA
Short for Universal Market Access, UMA provides an oracle system that requests and receives data from various sources. Launched on the Ethereum blockchain in 2018, UMA introduced its native token in April 2020, which is used for staking, governance, and payments, among other functions. UMA’s data-fetching tool, known as Optimistic Oracle, works by assuming data is correct unless a network participant disputes it. Through UMA’s smart contracts, developers can create innovative products and protocols. The oracle supports various projects, including the prediction market Polymarket, the cross-chain bridge Across, and the DeFi platform Outcome Finance. As of September 2024, the Total Value Secured (TVS) in the UMA protocol exceeds $301 million—a significant increase from approximately $139 million at the beginning of the year, according to DefiLlama.
UMA performance. Source: defillama.com
2. Pyth Network
Pyth Network is a Solana-based oracle solution, launched in April 2021. The protocol focuses on connecting blockchain-based apps with traditional financial institutions, providing real-time market data for cryptocurrencies, commodities, ETFs (exchange-traded funds), equities, and foreign exchange pairs. Pyth supports over 75 blockchains and offers access to more than 500 data feeds that developers can use to build new products by integrating the solution. The platform has a native cryptocurrency, PYTH, which powers network operations, payments, and governance. At the time of writing, Pyth is the third-largest oracle by Total Value Locked (TVL), exceeding $4 billion. Among the DeFi platforms using the network are Kamino Lend, Drift Trade, Marginifi Lending, and others.
Pyth Network performance. Source: defillama.com
3. Chainlink
Since its launch in 2017, Chainlink has been a top blockchain oracle, leading in project integrations and total value secured. At the time of writing, around 46% ($20.4 billion) of the total value secured across all oracles belongs to Chainlink. On its website, Chainlink describes itself as a global standard due to its ability to bring various types of real-world data to any blockchain. Blockchain platforms using Chainlink include Aave, Spark, Venus, Compound, and others. The platform partners with institutions like Swift to connect traditional finance with blockchain through tokenization. Chainlink’s native coin, LINK, is used to pay for network services and is among the top 15 cryptocurrencies, with a market cap of over $6 billion.
Chainlink performance. Source: defillama.com
4. WINkLink
Launched in 2019 as the first oracle service for Tron, WINklink provides real-world data to the blockchain. WINklink’s native token WINK is used for payments and network governance. Using the network’s smart contracts, developers can build products such as financial derivatives marketplaces, lending protocols and asset management platforms. Currently, WINklink is the second largest oracle with over $7 billion TVL. The dominant platform using WinkLink is JustLend, a DeFi lending protocol with a $5.7 billion total value locked in it.
WINkLINK performance. Source: defillama.com
5. Stork
Stork’s oracle services are customizable, allowing developers to quickly aggregate and integrate data from multiple sources into their applications. The project is developing the Open Data Framework, which enables data providers to share information and allows consumers to access that data through either the providers or the oracle system. Stork users can request new data types and create their own oracles. Launched in 2022, the project introduced Stork Perps, an oracle designed for derivatives trading. In August 2024, the team raised $4 million to expand its products. Currently, Stork’s total value secured (TVS) exceeds $215 million, and it provides data for derivatives trading platforms such as ApeX Pro, Vertex Preps, Raya DEX, and others.
Stork performance. Source: defillama.com
6. Edge
Edge, created by Chaos Labs, is the main oracle for the Solana-based decentralized exchange Jupiter. In September 2024, Chaos Labs announced the Edge Oracle protocol, making its data feeds accessible for app development on both Ethereum and Solana. The team also revealed plans to decentralize the Edge Oracle Network, with organizations including Galaxy Digital, Nethermind, and Blockdaemon joining as participants. Currently, Edge secures over $689 million in total value, with Jupiter being the only platform that the network provides data for.
Edge performance. Source: defillama.com
7. Switchboard
This decentralized oracle network on Solana, founded in 2021, connects dapps to real-world data. Using Switchboard’s on-demand data feeds, developers can aggregate data from other sources to customize the oracle or build their own data feeds. Switchboard is used by DeFi platforms including Kamino Lend, Save, Hedge, Mango, and others. It is among the top 5 oracles, with a total value secured (TVS) of over $1.8 billion. In May 2024, the project raised $7.5 million to expand its tools and services.
Switchboard performance. Source: defillama.com
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