On May 28, 2020, Blockfyre looked into three well known Oracle projects – $LINK, $TRB, and $BAND – and charted their network growth against several indicators. The analysis showed that social awareness of oracles decreased, while development progress increased, indicating significant upside potential.
The data also showed that BAND spiked and even overtook Chainlink in dev activity, while LINK, which has the highest development record of the three projects analyzed, constantly grew over the study period.
Moreover, all three networks are showing positive growth in daily active addresses, which are important indicators to measure real growth and health of a network because they display actual crowd interaction.
Considering the upside in social volume and the growing need for oracles, projections are positive on further growth in the oracles sector.
Oracle Projects Revenue on the Rise
Due to recent price developments, especially the strong performance of $LINK throughout the whole bear market, people often perceive oracles that are a rather “new” hype topic in crypto.
However, the Blockfyre analysis disproves this. It shows that the opposite is actually the case as all three projects have recently demonstrated a positive price development, supported continuously by continuous growth and product development.
Indeed, many crypto and blockchain enthusiasts share the opinion that Oracles are a massive space with plenty of room for growth.
For instance, a user by the name “The Crypto Zap” commented on the Blockfyre analysis noting:
The world’s second-largest software maker, Oracle Corp., reported sales gained less than 1% to $9.61 billion in the period that ended November 30, 2019. The Software maker also forecasted a 1%-3% quarterly sales growth, pointing to the growing demand for Oracle solutions.
An oracle essentially lets off-chain data to interact with smart contracts, which has enormous benefits for all ecosystem developers.
Blockchain Oracles – The Key to Interoperability
Decentralized Oracles are gateways for smart contracts to efficiently interact with the outside world while restricting reliance on a single source of truths.
Access to feeds of information originating in the physical world is absolutely essential for the development of the decentralized economy, which is why we are likely to see more growth in the oracle sector as blockchains strive for more interoperability.
Case in point, Oracle announced it had selected the initial cohort for a blockchain innovation project with Chainlink in October 2019.
The chosen 20 startups will use the Oracle blockchain and Chainlink’s decentralized oracle network to develop best practices and further the smart contract ecosystem.