By: Abbe Borg


In the dynamic world of decentralized finance (DeFi), oracles play a key role in bridging the gap between blockchain networks and real-world data. These oracle networks play a part in the creation of smart contracts that will be integrated with blockchain applications to operate with real-time external data. Two of the well-known oracle solutions in the space are Pyth Network and Chainlink. While both oracle networks offer solutions to connect smart contracts with external data, they have distinct approaches and target markets.

Pyth Network: Real-Time Data Focus
Pyth Network is a decentralized oracle network that provides real-time and real-world market data to smart contracts. Initially launched in 2021 on the Solana blockchain, it is designed to deliver high-frequency, low-latency data feeds, making it particularly suitable for applications that require rapid response times, such as high-frequency trading and algorithmic trading.

Pyth offers near-instantaneous data updates, ensuring that smart contracts always have access to the latest market information. Pyth price feed for a single asset is updated every 300-400 milliseconds. Pyth Network minimizes the delay between data generation and its availability on the blockchain and is capable of handling large volumes of data at high speeds, reducing the risk of stale information.

Chainlink: The Established Oracle
Chainlink Network, on the other hand, is a more established and widely adopted oracle network as compared to Pyth Network. In their whitepaper, Chainlink defines the foundation of “Chainlink 2.0” as a Decentralized Oracle Network (DON) maintained by Chainlink nodes. Chainlink's focus is on reliability and security, with a robust network of decentralized nodes to ensure data integrity.

Some of the key features of Chainlink are diverse data feeds, it is secure, reliable, and its established reputation. Its decentralized network and rigorous security protocols help protect smart contracts against malicious attacks and data manipulation. With its strong track record and a large user base of over 1600 supported projects, Chainlink is a trusted choice for many DeFi projects.

For pricing and valuation, Pyth Network has the PYTH token and Chainlink has the LINK token. The PYTH token is used to incentivize data providers and validators on the network. Its valuation is influenced by the demand for real-time market data and the growth of DeFi applications. On the other hand, the LINK token is used to pay for oracle services on the Chainlink network. Its valuation is driven by the increasing adoption of decentralized applications and the growing need for reliable data feeds.

Both Pyth Network and Chainlink have formed significant partnerships with various sources to enhance their services and expand their reach. Pyth Network has partnered with publishers and sources from numerous blockchain platforms such as Amber Group, CBOE, Binance, Gate.io, Bybit, Jane Street, and OKX. Meanwhile, Chainlink has established partnerships with leading financial institutions, DeFi protocols, and traditional financial institutions like Google Cloud, Fidelity International, ANZ, DTCC, Galaxy, Swift, BNB Chain, Cardano, MEXC Global, Intel, and Oracle among others.


The Future of Oracle Networks

Cointelegraph has noted that Pyth Network enhances interoperability for DeFi applications and offers institutional-grade data in the world of decentralized finance, enhancing the success of DeFi protocols and overall Web3 experience.

While Chainlink has a significant head start in terms of market capitalization and adoption, Pyth Network's focus on real-time data and its growing ecosystem of partnerships gives it room for substantial growth. According to Investing.com’s article published last April 10 on MSN, Pyth Network achieved a new milestone as they secured over $7 billion in value in April 2024. The upswing on the valuation was credited to the substantial growth of its active users and the expansion of its blockchain support. For March 2024, the increase in the network’s volume of transactions grew from $4.8 billion to $87.1 billion in just a year.

For 2025 and beyond, Pyth Network is carving a niche as a provider of significant real-time market data not only for decentralized exchanges, lending protocols, stablecoin platforms, and lending platforms, but also for traditional finance. As the DeFi landscape and Web3 ecosystem continue to evolve, it will be interesting to observe the ongoing development and correlation between these oracle networks.

#####