What is RedStone and what are its benefits?
In this article I will talk about the RedStone project and what are its benefits
RedStone is a specialized Oracle system designed to provide frequent, reliable, and diverse data feeds for decentralized applications (dApps) and smart contracts operating on various Layer 1 (L1) and Layer 2 (L2) blockchain networks.
RedStone was founded in the first half of 2021 in response to a pressing need for fast, cost-effective, and reliable oracles in the blockchain industry. The founders had participated in hackathons and faced challenges in finding suitable oracles for their projects, leading them to create RedStone to address this issue.
In August 2022, RedStone announced that it had successfully raised a $7 million seed round of investment led by Lemniscap, a blockchain-focused venture capital firm. The funds raised in this seed round are intended to support RedStone in pursuing its mission of advancing Web3 innovation through a unique approach to on-chain data storage.
Seed Round Investors: The $7 million seed round was supported by a diverse group of investors, including prominent blockchain and crypto-focused entities. Some of the notable investors in RedStone’s seed round include: Lemniscap (Lead Investor),Blockchain Capital ,Coinbase Ventures, Distributed Global, Lattice Fund, Arweave, KR1 plc, Bering Waters, Maven11, SevenX, FoliusVentures, Numeus,The Graph 4SV PermanentVentures, ComputeVentures
RedStone Oracles: These oracles deliver price data feeds that cover a wide range of assets, including long tail tokens, Forex, and commodities. They are designed to be highly scalable and operate across different blockchain networks. RedStone’s storageless architecture ensures resistance to network congestion and allows data to be delivered to projects every few seconds.
Warp Contracts: These are modular smart contracts built on top of the Arweave storage chain. Warp Contracts optimize computation efficiency by decoupling storage from computation, making them highly efficient for various applications, including gaming, DeFi, and NFT marketplaces.
Motivation for Building RedStone: RedStone addresses several challenges in the Oracle space:
- Resource Efficiency: Reducing the wastage of resources by not pushing data onto the blockchain if it is not actively used.
- Scalability: Overcome scalability limitations associated with legacy and monolithic Oracle architectures that struggle to implement new assets or reduce data latency.
- Trust and Reliability: Ensuring that protocols cannot fully determine trusted data sources and data update conditions, which can lead to data manipulation or misinformation.
- Relay dependency: Reduce end-user dependency on repeaters, ensure continued service availability.
Solution provided by RedStone: RedStone offers innovative solutions to these problems:
Data Delivery Optimization: Data providers can avoid the need to constantly deliver data on-chain.
User-centric approach: Enabling end users to self-deliver signed Oracle data to the blockchain.
Decentralized Data Delivery: Utilizing the decentralized Streamr network for delivering signed Oracle data to end users.
Incentivization: Using token incentives to motivate data providers to maintain data integrity and ensure uninterrupted service.
Data Archiving: Leveraging the Arweave blockchain for cost-effective and permanent storage of archived Oracle data, ensuring accountability of data providers.
Key Features of RedStone:
Modular architecture: ensures data integrity throughout the data delivery process, from source to smart contracts.
Flexible Integration: Offers three different integration options to meet the specific needs of different users and protocols.
Data Coverage: Provides data feeds for more than 1000 assets from approximately 50 data sources.
Network Presence: Supports over 20 different blockchain chains.
Partnership & Audit: RedStone has supported DeltaPrime since March 2022 and has been active on mainnets since January 2023. The code has been security audited by reputable experts including ABDK, Peckshield and co-founder L2Beat.
Effective partnership: RedStone partnered to launch DeltaPrime on the Avalanche blockchain, providing data streams that were not available elsewhere. According to DefiLama, this cooperation has contributed to the significant growth of DeltaPrime.
RedStone employs three distinct models for delivering data to accommodate various smart contract architectures and business requirements. These models are:
- RedStone Core:
- In this model, data is dynamically injected directly into user transactions, ensuring maximum gas efficiency.
- The entire process, from data injection to smart contract interaction, fits into a single transaction, providing an excellent user experience.
- This model is designed for applications and protocols that prioritize gas efficiency and seamless user interactions.
2. RedStone Classic:
- RedStone Classic involves pushing data into on-chain storage via a relayer.
- It is intended for protocols that follow the traditional Oracle model and desire full control over the data source and update conditions.
- Users employing this model can customize the data delivery process based on their specific requirements.
3. RedStone X:
- RedStone X is tailored to meet the needs of advanced protocols, particularly those dealing with perpetuals, options, and derivatives.
- This model eliminates the front-running risk by providing price feeds at the very next block after users’ interactions.
- It is optimized for high-frequency data updates and advanced financial instruments, ensuring timeliness and security in the data delivery process.
These three models provide flexibility and cater to different use cases and preferences within the decentralized finance (DeFi) ecosystem. Users can choose the model that best aligns with their project’s requirements and design objectives, whether prioritizing gas efficiency, data control, or advanced financial instrument support.
Achievements: Since its launch, RedStone has made significant progress. It received both Pre-Seed and Seed rounds of funding from the world’s leading funds, released two developer-focused products (RedStone Oracles and Warp Contracts), and acquired clients that use these products on various blockchain networks, including Ethereum, Avalanche , Arweave. , Polygon, Celo and others.
Future Plans: The funds raised in the seed round are intended to support RedStone’s continued growth and development. This includes recruiting top engineering talent, participating in international conferences and hackathons, and expanding partnerships with various blockchains, protocols, and applications. Additionally, the funds will be used to foster the growth of the RedStone ecosystem through grants and stipends for developers, node operators, network bootstrapping, and high-reputation data providers.
Overall, RedStone aims to play a crucial role in the Web3 ecosystem by providing the necessary infrastructure to connect blockchains with real-world data efficiently and cost-effectively. The diverse group of investors in its seed round reflects strong support and confidence in RedStone’s mission and products.
