A Collaboration Between Hedera Foundation (HBAR) and Chainlink

Bittime - The Hedera Foundation (HBAR) and Chainlink recently announced a collaboration to accelerate the adoption of DeFi applications and asset tokenization on the Hedera network. 

What are the results of this collaboration between HBAR and Chainlink? Read this article to find out more!

HBAR and Chainlink: Chainlink Data Feeds 

One of the main features presented in the HBAR and Chainlink collaboration is Chainlink Data Feeds. This technology allows Hedera developers to access decentralized, accurate and manipulation-free financial market data. 

The resulting data is sourced from various premium data aggregators, providing average prices calculated based on trading volume across multiple exchanges. 

The following is advantages of Chainlink Data Feeds. 

1. High quality data: Data is sourced from hundreds of exchanges and has been filtered for anomalies and fake trading activity.

2. Secure node operators: Chainlink oracle nodes are managed by a leading blockchain DevOps team ensuring reliability, even under demanding network conditions.

3. Network decentralized: Data is protected from manipulation thanks to a decentralized architecture at multiple levels.

4. Reputation system: Chainlink provides monitoring tools that enable real-time verification of node performance.

With these features, developers can build more secure and innovative DeFi applications on top of the Hedera network.

Read Also: Hedera (HBAR) Price Analysis in Early December

HBAR and Chainlink: Proof of Reserve 

This collaboration between HBAR and Chainlink also produces features Chainlink Proof of Reserve. This technology provides real-time backup verification for assets tonics, increasing transparency and trust within the DeFi ecosystem.

Here are some benefits of Proof of Reserve.

1. Programmatic utilities: Backup data can be used to build automated logic in applications, such as risk management mechanisms.

2. Decentralized transmission: Eliminates the risk of central failure in the transmission of data to the blockchain.

3. Security: Protects against zero-reserve token minting attacks via cryptographic collateral.

4. Transparency: All users can verify asset reserves in real-time.

With the adoption of Proof of Reserve, DeFi applications on Hedera can ensure that assets are tonics actually supported by appropriate reserves.

Read Also: 3 Ways to Connect Hedera to MetaMask Wallet

HBAR and Chainlink: Chainlink Scale 

As part of the HBAR and Chainlink collaboration, Hedera also joined the Chainlink Scale program. This program provides better access for Hedera developers to utilize Chainlink oracle services. 

The integration of Chainlink Data Feeds and Cross-Chain Interoperability Protocol (CCIP) on the Hedera network is the first step to building more sophisticated and easily accessible DApp applications.

Read Also: HBAR Price Prediction End of 2024: Can it Break $0.5?

HBAR and Chainlink: CCIP

The collaboration between HBAR and Chainlink also produced results Chainlink CCIP, a key pillar in improving interoperability on the Hedera network. 

This technology enables cross-chain transfer of tokens and messages in one transaction, opening up opportunities for more efficient cross-blockchain applications.

Bhere are some fCCIP main features.

1. Transfer tokens and messages in one transaction.

2. Audited token contracts to manage token burning and minting.

3. UI easy to use developer.

With a phased rollout on the Hedera network, CCIP is expected to enhance a secure and reliable cross-chain application ecosystem.

That is the result of HBAR's cooperation and Chainlink. With the adoption of Chainlink standards for high-quality data and backup verification, Hedera developers have the tools necessary to create innovative DeFi and asset tokenization applications. 

Read Also: Hedera Price Prediction (HBAR) 2025 and Long Term

Hedera (HBAR) FAQs

What is Hedera (HBAR)?

Hedera is a platform that uses unique “hashgraph” technology to support DApps. Hedera's native token, HBAR, is used to pay for transactions on the network and maintain security through a staking mechanism.  

What are the advantages of Hedera (HBAR) compared to other blockchains?

Hedera offers high transaction speeds, low fees, and much better energy efficiency than other blockchains. Hedera also has strong governance through a global member board that includes major companies such as Google and IBM.

How to Buy Hedera (HBAR)?

Hedera (HBAR) can be purchased via various exchange platforms such as Bittime, just by visiting the trade page on the official Bittime website. 

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Reference

Elaine Song, Hedera Adopts the Chainlink Data Standard To Accelerate DeFi and Tokenized RWA Adoption, accessed December 23, 2024.

Elaine Song, HBAR Foundation Joins Chainlink Scale, With Chainlink Data Feeds and Chainlink CCIP Being Integrated on Hedera, accessed December 23, 2024.

Author: IPR