Hedera Adopts the Chainlink Data Standard To Accelerate DeFi and Tokenized RWA Adoption

We're excited to announce that Chainlink Data Feeds and Chainlink Proof of Reserve—which is part of SmartData, Chainlink’s suite of asset servicing data products—are now live on the Hedera network. By adopting the Chainlink standard for high-quality data and reserves verification, developers on the Hedera network now have seamless access to tamper-proof feeds needed to support the development of highly secure DeFi and tokenized RWA applications.

The HBAR Foundation recently joined Chainlink Scale to provide Hedera developers with enhanced access to Chainlink’s high-quality oracle services. As the standard for decentralized data, Chainlink already helps secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, has a proven history of reliably delivering data of all types to blockchains, and is widely adopted by applications that require offchain data and computation services.

Enabling Secure Onchain Markets With Chainlink Data Feeds

In order to help enable the development of high-quality onchain applications, developers on the Hedera network needed seamless access to offchain data feeds that are supplied directly onchain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments, both onchain and offchain. Thus, developers on the Hedera network needed decentralized oracle network (DON) infrastructure to fetch, aggregate, and deliver financial market data onto the Hedera network.

Chainlink Data Feeds provide a multitude of critical features such as:

• High-Quality Data — Chainlink Data Feeds source data from numerous premium data aggregators, leading to price data that’s aggregated from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading. Chainlink’s data aggregation model generates more precise global market prices that are resistant to inaccuracies or manipulation of any single or small set of exchanges.
• Secure Node Operators — Chainlink Data Feeds are secured by independent, security-reviewed, and Sybil-resistant oracle nodes run by leading blockchain DevOps teams, data providers, and traditional enterprises. Chainlink nodes have a strong track record of reliability, even during high gas prices and infrastructure outages.
• Decentralized Network — Chainlink Data Feeds are decentralized at the data source, oracle node, and oracle network levels, generating strong protections against downtime and tampering by either the data provider or oracle network.
• Reputation System — Chainlink provides a robust reputation framework and set of onchain monitoring tools that allow users to independently verify the historical and real-time performance of node operators and oracle networks.

This integration provides developers with direct access to Chainlink’s decentralized oracle network, including price feed contracts for a wide range of assets, and the ability to connect to off-chain data sources via Chainlink’s oracle infrastructure. Developers can follow this documentation to learn how to use Chainlink Oracles on Hedera.

Enhancing Transparency With Chainlink Proof of Reserve

Using the same decentralized oracle network infrastructure that secures Data Feeds, Chainlink Proof of Reserve provides real-time reserve verifications for tokenized assets, providing a heightened level of transparency. Chainlink Proof of Reserve can fetch data directly from custodians offchain and publish it on the Hedera network, enabling DeFi applications to perform onchain verification checks around collateralization.

Key benefits of Chainlink Proof of Reserve include:

• Programmatic Utility — By bringing reserve data onchain, protocols can build automated logic around the reserve data backing an asset (e.g., circuit breakers), and realize new use cases and features such as automated onchain risk management.
• Decentralized Transmission — As the standard for onchain reserve verification, Chainlink Proof of Reserve Feeds are decentralized at the oracle node level, eliminating central points of failure in the delivery of data to blockchains such as Hedera.
• Security — With secure minting, Proof of Reserve protects against malicious minting by embedding cryptographic guarantees that new tokens minted are backed by reserves, helping to prevent infinite mint attacks.
• Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in real time, allowing any user to independently verify asset collateralization. This brings increased transparency and trust to onchain products.

"We’re excited to deepen our integration with the Chainlink standard by adopting Chainlink Data Feeds and Proof of Reserve on Hedera. By making the Chainlink standard available to our developer ecosystem, we can enable increased access to high-quality, tamper-proof data backed by decentralized infrastructure, which is mission-critical for building secure DeFi applications and scalable tokenized assets."—Elaine Song, VP of Strategy at The HBAR Foundation.