# Blockchain Oracles Emerge as Essential Infrastructure for DeFi Growth

Blockchain oracles are positioning themselves as critical infrastructure for the growth of Decentralized Finance (DeFi) and on-chain finance. Leading oracle protocols such as Chainlink ($LINK), Pyth ($PYTH), and RedStone are playing a crucial role in securely bridging real-world data to blockchain networks. Each oracle distinguishes itself with unique approaches to data provision, security models, and scalability, significantly expanding their market share within the DeFi sector.

## Comparing Chainlink, Pyth, and RedStone

Blockchain oracles’ core function is to deliver external data to on-chain smart contracts, categorized into Push and Pull models based on how they provide data.

The Push model entails oracles proactively delivering data to the blockchain. In this model, oracles periodically update data and store it on-chain, allowing smart contracts to directly access and utilize the data. Though this method ensures that data remains up-to-date, it may result in increased gas costs from storing unnecessary data on-chain. Chainlink is a prominent example using the Push model.

Conversely, the Pull model operates by having smart contracts request data from oracles as needed. This method conserves gas costs by fetching data only when a specific transaction occurs. However, it might be inconvenient for real-time data applications since the data is not available on-chain until requested. Pyth is a notable oracle employing the Pull model.

RedStone uniquely supports both the Push and Pull models. It combines on-chain storage with request-based data provision, allowing protocols to select the optimized model based on their specific needs.

## Differentiation Among Oracles

Chainlink boasts the longest operational track record, while Pyth experienced rapid growth in 2023. By 2024, RedStone is projected to be the fastest-growing oracle.

In the current DeFi market, major protocols tend to favor the Push model. Notable examples include Aave, Compound, Venus, Morpho, and Pendle. Chainlink utilizes aggregators for data collection, Pyth relies on a publisher network, and RedStone directly collects data from on-chain liquidity pools, offering custom data sourcing capabilities.

RedStone differentiates itself with specialized solutions such as the Bitcoin collateral proof oracle, Lombard, and the Puffer-specific validator ticket system.

## The Role of Oracles in the Expanding DeFi Ecosystem

All three oracles focus primarily on providing reliable price feeds, a fundamental component of on-chain finance. As the market grows, the competition and collaboration among oracles will become increasingly critical for the expansion of the DeFi ecosystem.

Currently, Chainlink, Pyth, and RedStone are growing their market share by specializing in different areas. The coexistence of various oracles enhances the reliability and scalability of blockchain solutions, which is considered essential for the progressive development of the DeFi environment.