CoinWorld reports:
Author: DeMan; Source: PANews
How does RedStone provide low-cost price feeds for L2?
RedStone, a modular blockchain oracle provider, successfully raised $15 million in Series A funding on July 2nd, led by Arrington Capital.
Other investors in this funding round include Kraken Ventures, White Star Capital, Spartan Group, Amber Group, SevenX Ventures, and IOSG Ventures.
Additionally, angel investors such as Smokey the Bera and Homme Bera from Berachain, Mike Silagadze from Ether.Fi, Jozef Vogel, Rok Kopp, Amir Forouzani, Jason Vranek, and Christina Chen from Puffer Finance also participated. Moreover, on July 4th, the Zircuit mainnet undertook the emerging oracle project Redstone.
With the total locked value of the DeFi market doubling in the past year, amassing over $50 billion in assets, particularly in the liquidity mining sector, RedStone’s modular design has carved out a unique position in the market.
This funding round not only demonstrates investor confidence in RedStone’s future development but also signifies its further consolidation in the blockchain oracle domain.
01,
The Next-Gen Oracle: RedStone
RedStone is a modular blockchain oracle akin to Chainlink and Pyth Network, but distinguishes itself with its modular design advantages.
Jakub Wojciechowski, Founder and CEO of RedStone, emphasizes that this modular architecture enables RedStone to launch more swiftly on new networks and adjust traffic flexibly based on market demands.
As the wave of liquidity re-collateralization tokens rises, RedStone becomes the first oracle supporting projects like Ether.Fi, Renzo, Puffer, and Swell.
The primary function of blockchain oracles is to provide real-world data to smart contracts, ensuring they make decisions based on the latest external information. The modularity of these oracles allows their components to be independently updated or replaced, ensuring scalability and integration across different blockchains.
Integration with the Open Network (TON) serves as a prime example. Wojciechowski points out that TON’s architecture made oracle integration a complex task, but the RedStone team spent four months ensuring smooth end-to-end integration.
According to DeFiLlama data, RedStone currently ranks as the fifth-largest blockchain oracle, with a total value of approximately $3.5 billion.
Founded during the 2020 Arweave Chain incubation program, RedStone supports over 60 blockchains, including Layer 1 and Layer 2 networks such as Ethereum, Base, Arbitrum, and Merlin Chain. In the future, RedStone plans to support Berachain and Monad blockchains and will introduce Active Verification Services (AVS) on EigenLayer.
Over the past three years, RedStone has been promoting an on-demand approach, currently deployed on over 40 L1 and L2 networks, outpacing its competitors.
With the upcoming Ethereum upgrade Dencun (EIP-4844), increased liquidity mining and re-collateralization, and the rise of L2, Optimistic, and ZK rollups, the industry’s demand for reliable price data is expected to surge. With its forward-looking design, RedStone is poised to maintain its leadership in this rapidly evolving field.
02,
Unique Aspects of RedStone
RedStone oracles adopt a unique approach by storing non-standard data on Arweave and transmitting it to all EVM-compatible chains.
Oracles act as middleware facilitating communication between blockchains and off-chain systems (e.g., data providers, cloud providers, IoT devices, and payment systems). Smart contracts on various blockchains, including Ethereum, rely on oracles to decide whether to execute protocols or commands based on external data. Hence, platforms and enterprises using smart contracts directly depend on oracles to fetch data from the outside world.
However, centralized and third-party oracles do not align with the values of blockchain technology and decentralization. The uncertainty and asynchrony of external data make consensus difficult among nodes.
Moreover, the risk of directly accessing insecure external environments deters many projects, known as the oracle problem. Blockchain’s decentralized nature prevents it from extracting or pushing data from any external system. Blockchain nodes must be kept in isolated sandboxes, making direct access to traditional services or data generation internally impossible.
RedStone addresses the challenges faced by blockchain projects by providing a flexible and cost-effective oracle solution.
Its modular design suits DeFi, akin to blockchain L2, enabling it to provide oracle data services to multiple EVM and non-EVM ecosystems, Rollups, and various application chains, both push and pull.
RedStone’s data, cryptographically signed by providers, can be verified on any chain supporting basic cryptographic primitives.
RedStone leverages Arweave’s next-generation blockchain storage to store large volumes of data at low cost, enabling it to handle more data at higher update frequencies.
Unlike traditional oracles, RedStone stores its data on Arweave, disseminating it to DeFi projects via decentralized public caches maintained by nodes and partner networks. The EVM-Connector allows injecting this data into target chains only when needed, ensuring data integrity and security.
Furthermore, RedStone allows multiple data providers to enter the blockchain ecosystem, each applying different aggregation rules to provide customized services tailored to DeFi protocol needs. RedStone’s design also ensures data integrity, as data providers are required to stake RedStone tokens as collateral to continue operations and provide high-quality data.
Through its innovative approach, RedStone not only offers a secure, flexible, and efficient alternative to existing oracle solutions but also provides reliable real-world data support for DeFi and smart contract applications. As the blockchain ecosystem continues to evolve, RedStone is poised to maintain its leadership in the oracle field.
Conclusion
RedStone, hailed as the next-generation oracle, has shown impressive trading volume data performance throughout 2023 and early 2024.
This achievement owes much to the RedStone team’s dedication during the bear market. Through meticulously planned activities, continuous integration collaborations, and relentless product innovation, they have become the major contributor driving Arweave’s transaction volume growth and gradually gaining market recognition.
In the first half of 2024, RedStone delivered commendable results, prompting anticipation as to whether it will emerge as a leading project in the oracle race alongside Chainlink. We eagerly await further developments.
