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Author: DeMan; Source: PANews
How RedStone Provides Low-Cost Price Feeds for L2?
RedStone, a modular blockchain oracle provider, successfully raised $15 million in Series A funding on July 2, 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 were also involved. Moreover, on July 4th, the Zircuit mainnet undertook the emerging oracle project Redstone.
With the total locked value in the DeFi market doubling over the past year, accumulating over $50 billion in assets, RedStone’s modular design has positioned it uniquely 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 sector.
01,
Next-Generation Oracle RedStone
RedStone is a modular blockchain oracle similar to Chainlink and Pyth Network, distinguished by its modular design advantages.
Jakub Wojciechowski, Founder and CEO of RedStone, emphasizes that the modular architecture allows RedStone to launch more quickly on new networks and adjust traffic flexibly according to market demand.
As the wave of liquidity re-collateralization tokens rises, RedStone has become the first oracle to support 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 can make decisions based on the latest external information during execution. The advantage of modular oracles lies in their components’ ability to be independently updated or replaced, ensuring scalability and integration across different blockchains.
Integration with the Open Network (TON) serves as a typical example. Wojciechowski points out that TON’s architecture made oracle integration challenging, but the RedStone team ensured seamless end-to-end integration over four months.
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 Service (AVS) on EigenLayer.
Over the past three years, RedStone has been promoting an on-demand approach and is currently in use on over 40 L1 and L2 networks, ahead of its competitors.
With the Ethereum upgrade Dencun (EIP-4844), the increase in liquidity re-collateralization and re-staking, and the rise of L2 and Optimistic and ZK rollups, the industry’s demand for reliable price data will further increase. RedStone is prepared to maintain its leadership position in this rapidly evolving field with its future-oriented design.
02,
Unique Aspects of RedStone
RedStone employs a unique approach by storing non-standard data on Arweave and transmitting it to all EVM-compatible chains.
As middleware, oracles facilitate communication between blockchains and off-chain systems (such as data providers, cloud providers, IoT devices, and payment systems). Smart contracts on various blockchains, including Ethereum, rely on oracle-provided data to determine whether to execute protocols or commands. Therefore, platforms and enterprises using smart contracts depend directly on oracles to fetch data from the external world.
However, centralized and third-party oracles do not align with blockchain technology and its decentralized values. The uncertainty and asynchrony of external data make it difficult for nodes to reach consensus.
Furthermore, the risks associated with directly accessing insecure external environments deter many projects, known as the oracle problem. The decentralized nature of blockchains prevents them from extracting or pushing data from any external system. Blockchain nodes must remain isolated in sandboxes, unable to access traditional services or generate internal data.
RedStone mitigates challenges faced by blockchain projects by providing a flexible and cost-effective oracle solution.
Its modular design is suitable for DeFi, similar to blockchain L2, enabling it to provide push and pull oracle data services to multiple EVM and non-EVM ecosystems, Rollups, and various application chains.
RedStone’s data, cryptographically signed by providers, can be verified on any chain that supports basic cryptographic primitives.
Utilizing Arweave’s next-generation blockchain storage, RedStone stores large amounts of data at low cost, enabling it to process more data at higher update frequencies.
Unlike traditional oracles, RedStone stores data on Arweave, and node and partner networks provide them to DeFi projects in the form of decentralized public caches. The EVM-Connector injects this data into target chains only when needed, ensuring data integrity and security.
Additionally, RedStone allows multiple data providers to enter the blockchain ecosystem, each applying different aggregation rules to offer customized services tailored to DeFi protocol demands. RedStone’s design also ensures data integrity, requiring data providers 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 will maintain its leadership position in the oracle field.
Conclusion
RedStone is hailed as the next-generation oracle, boasting impressive transaction volume data for 2023 and early 2024.
This success is attributed to RedStone’s team dedication during the bear market. Through carefully planned activities, continuous integration partnerships, and ongoing exploration of product innovation, they have become a major contributor to Arweave’s transaction volume growth and gained market recognition.
In the first half of 2024, RedStone delivered promising results. Whether it will emerge as a leading project alongside Chainlink in the oracle race remains to be seen. We eagerly await further developments.