Imagine DeFi protocols as intricate machines built in a virtual world, and oracles are the nervous system that enables this machine to perceive the external environment. By 2025, market battles will be precise to the millisecond, where even slight data delays or numerical deviations can trigger chain reactions.

Interestingly, recently everyone is moving in one direction—whether it’s mature lending protocols or emerging BTC Layer 2 projects, all are beginning to adopt new oracle solutions. This is no coincidence. After experiencing liquidity crises and incidents of oracle manipulation, the market has started to develop a mindset of "using better technology to hedge risks."

From a technical perspective, traditional oracles are like data couriers—slow, expensive, and often unreliable. The new generation solutions, however, establish high-speed channels between the real world and the blockchain. For example, with sub-second quote frequencies, this is highly significant for perpetual contract platforms like GMX that prioritize trading experience. Smaller slippage, compressed arbitrage opportunities, and improved user experience naturally follow.

Imagine this scenario: during intense market volatility, your liquidation price is still based on data from 30 seconds ago, while others are already using the latest market prices. The gap is just one or two seconds. That’s why protocols like Pell Network, a BTC Layer 2 solution, are upgrading their infrastructure for faster price feedback.