RedStone Launches Data-Validation Service On EigenLayer

According to Cointelegraph, RedStone has introduced a data-validation service on EigenLayer, marking the first instance of a major oracle provider integrating with the Ethereum restaking protocol. The service, currently in its testnet phase, aims to establish a scalable framework that dynamically adjusts cryptoeconomic security as decentralized finance (DeFi) continues to grow, as stated by RedStone. RedStone's oracles operate across more than 50 blockchain networks, securing nearly $3.5 billion worth of cryptocurrency. The integration with EigenLayer highlights a mature oracle system enhancing its security through restaked guarantees, according to Alan Curtis, Chief Operating Officer of developer Eigen Labs. Decentralized oracles play a crucial role in connecting blockchain networks to external data sources, including financial market data. Restaking involves using a token that has already been staked as collateral with a validator to secure additional protocols simultaneously. EigenLayer secures numerous third-party protocols, known as actively validated services (AVSs), with approximately $11 billion of restaked collateral, according to DefiLlama. Another oracle service, eOracle, is already operational on EigenLayer and is secured by around $9 billion worth of Ether (ETH) as of October 22, according to EigenLayer’s website. Large oracle providers like RedStone and Chainlink are increasingly significant in traditional financial markets. On October 21, Chainlink announced plans to create an onchain database of corporate actions using artificial intelligence and decentralized oracle technology. EigenLayer is focusing on onboarding consumer Web3 applications following the October 1 unlock of its native token, EIGEN, as stated by founder Sreeram Kannan. Initially, the focus will be on crypto-native segments such as DeFi and gaming, with plans to expand beyond Web3 once a critical mass is achieved. Kannan emphasized an inside-out approach, starting with high-throughput consumer apps like DeFi and gaming before targeting broader consumer markets. Additionally, EigenLayer plans to attract restakers with a programmatic incentives program announced on September 17. The program will reward restakers with EIGEN emissions, comprising approximately 4% of the token’s total supply.