The focus on blockchain oracle protocols, such as Chainlink (LINK), has been growing, reflecting the rapid adoption of smart contracts. These oracle protocols are vital to the crypto industry, serving as channels for accurate data that drives the automation of smart contracts.
As the worlds of DeFi and traditional finance converge, the importance of oracles becomes increasingly evident. RedStone emerges as a pioneering force in response to this surging demand for oracle solutions.
RedStone harnesses the decentralized Streamr network to provide users secure data while eliminating unnecessary on-chain data transmission inefficiencies. RedStone is a provider of reliable data feeds, operating across over 40 blockchain platforms, including Ethereum Virtual Machine (EVM)-compatible blockchains and non-EVM networks.
In a recent interview with CryptoSlate, CEO and founder Jakub Wojciechowski discussed what the company has been working on in recent years and what makes RedStone distinct from other oracle providers.
With the increased demand for decentralized finance applications, RedStone offers a modular architecture enabling on-chain data efficiency. Its innovative data availability layer stores all the data; only what is necessary is fetched on-chain. This optimizes cost and efficiency.
Wojciechowski stated:
“RedStone is revolutionizing the oracle space by eliminating the inefficiency of excess on-chain data pushing and leveraging the decentralized Streamr network for reliable data delivery to users. With the additional innovation of minimal incentives, it ensures data integrity and validator continuity, while also utilizing the Arweave blockchain for cost-effective, permanent data storage.”
The innovative architecture also allows the protocol to stream data assets frequently to any EVM Layer-1 or Layer-2 network. This means broad compatibility with multiple smart contract blockchains.
Unlike the traditional push oracle model, which is not scalable and comes with a higher cost for each chain deployment, the RedStone approach enables it to provide affordable and reliable data feeds for more than 40 chains.
RedStone also plays a crucial role in supporting Aave's stablecoin, GHO. The stablecoin ecosystem largely relies on oracles, especially for algorithmic stablecoins, as their stability depends on proper protocols aggregating data from multiple sources.
“Oracles play a critical role in the stablecoin ecosystem, especially for algorithmic and decentralized stablecoins that are pegged against volatile cryptocurrency assets,” Wojciechowski said. “When the collateral-to-debt ratio falls below a certain threshold, oracles trigger liquidations to maintain system solvency, making their reliability and quality essential for the stablecoin's peg to its target value.”
For Aave GHO, RedStone integrates data from various DEX pools to support stablecoin stability. Wojciechowski also noted that RedStone remains developer-friendly by offering three integration models for developers.
