---
description: >-
  (This article was originally published on my personal
  blog:https://chainguys.github.io/)
---

# RedStone - A Short intro to the New Era of Oracles for Modern DeFi

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## RedStone?What? <a href="#redstonewhat" id="redstonewhat"></a>

RedStone is an innovative new Oracle system designed to meet the evolving data needs of decentralized finance (DeFi) protocols and dApps on multiple layer 1 and layer 2 networks.

## How Current Oracles let you down : <a href="#how-current-oracles-let-you-down" id="how-current-oracles-let-you-down"></a>

Existing Oracle solutions have some key limitations that RedStone aims to solve:- Pushing data on-chain continuously wastes resources if the data is unused.

* Monolithic architecture makes it difficult to scale up listed assets or reduce latency.
* Protocols can't fully control trusted data sources and update frequencies.
* Users depend completely on relayers and risk being cut off.

## RedStone's Solutions: <a href="#redstones-solutions" id="redstones-solutions"></a>

RedStone provides a radically new Oracle architecture tailored for modern DeFi:- Avoid mandatory continuous on-chain delivery.

* Enable users to self-deliver signed Oracle data on-chain.
* Leverage the decentralized Streamr network to deliver signed data to users.
* Use token incentives to motivate reliable data feeds from providers.
* Archive immutable Oracle data on Arweave for accountability.

## Modular Design for Flexibility: <a href="#modular-design-for-flexibility" id="modular-design-for-flexibility"></a>

RedStone uses a modular approach where data is stored off-chain and only fetched when needed. This allows broad asset coverage and high update frequency without bloating on-chain data.3 Integration Options:\
Based on smart contract needs, RedStone offers:

* RedStone Core - injects data into user transactions for efficiency.
* RedStone Classic - pushes data via relayer for control.
* RedStone X - eliminates front-running risks for derivatives.Conclusion:

With its innovative architecture, RedStone unlocks the next evolution of customizable, reliable, and efficient Oracle solutions tailored for the future of DeFi.
