Highlights:
- Oracles serve as software systems linking blockchains to external networks, enabling smart contracts to execute based on inputs from established real-world data networks.
- Switchboard provides secure, verifiable randomness with a trustless RNG for blockchain apps.
Recently, a startup specializing in on-chain “oracle” solutions, offering Web3 projects access to real-world third-party data, Switchboard Technology Labs Inc., has secured USD 7.5 million in early-stage funding. Tribe Capital and RockawayX jointly led this investment round.
The company’s Series A funding round received further support from the Solana Foundation, Aptos Labs, Mitzen Labs, Subzero Ventures, Starkware, Arche Capital, Breed VC, and Ascensive Assets.
Oracles are software systems facilitating the connection between blockchains and external systems, enabling smart contracts to operate using inputs from conventional real-world data networks. Examples encompass oracles importing data from various sources, such as financial asset managers for stock prices, weather services for insurance purposes, randomness generators for gambling applications, Internet of Things sensor networks for supply chain management, or government ID networks for verification purposes.
“Switchboard is dedicated to delivering the perfect oracle solution for every developer’s needs. The industry has become over-reliant on one-size-fits-all solutions that are needlessly slow and inefficient to set up. We’re granting developers the ability to quickly build the solutions they need,” said Co-founder Chris Hermida.
The company plans to utilize the funds to expand its range of oracle tools and applications, notably its flagship Switchboard On-Demand product. This product aids developers in securely aggregating on-chain information with minimal delay and optimal accuracy. By executing oracles within confidential runtimes, the oracles themselves remain unable to observe the data flow. This approach enables developers to tailor the experience, facilitating the feeding and processing of data for blockchain applications.
Switchboard also provides access to secure and verifiable randomness through a trustless random number generator tailored for blockchain applications, necessitating a safe method for generating random numbers. Generating random numbers presents a potential vulnerability in areas such as gambling, gaming, encrypted hashes, and beyond. Additionally, users have the capability to securely store sensitive information, referred to as “secrets,” including application programming interface keys, passwords, and database credentials, within oracle feeds utilizing trusted execution environments.
“Oracle networks are the backbone of the Web3 ecosystem. They differ in the data sources, methods in data publishing, reliability and ease of use. We believe Switchboard scores very highly on these metrics. It is designed to maximize flexibility and performance; developers can run their own queues, customize their oracle network or build on cost-effective on-demand data feeds,” said RockawayX’s Marek Sandrik.
Since its inception in 2021, Switchboard reports that over 100,000 users have registered, and the total value secured on its network has surpassed USD 2 billion.
