Best Choice for Investors: Hedera vs Chainlink

Although we are used to innovation in the crypto world, Hedera and Chainlink are two projects that aim to take things a step further with their unique characteristics and features. And yes, Helium is also an exciting project, which justifies finding a BTC/HNT exchange and going ahead with that trade if you find it to be a smart move.

But if you think that HBAR and LINK might also become a part of your portfolio, we have an investor guide below. Check out the specifics about Hedera and Chainlink and see if any coin is worth acquiring!

What Is Hedera?

Hedera Hashgraph is the full name of this crypto project that uses a different structure to offer similar features to Ethereum and Bitcoin. Its main characteristics include decentralization, security, and efficiency. The platform allows the implementation of smart contracts and dApps and ensures full compatibility with the EVM — Ethereum Virtual Machine.

Consensus Mechanism

The hashgraph consensus mechanism aims to generate trust in situations where no individual can be trusted. It uses the asynchronous BFT (Byzantine Fault Tolerance) mechanism, which is the strongest form of the BFT model. It allows achieving consensus even in situations when malicious impersonators appear. Mathematics proves that this consensus mechanism is how a distributed network can achieve optimal security.

Governance Model

Hedera is a decentralized network led by a Governing Council. The council is made up of 39 reputable organizations, ranging from Google and Boeing to Standard Bank, Chainlink Labs, and Ubisoft. The fact that renowned companies participate in the council boosts the overall project’s trustworthiness. There’s no worry that one organization or group could control the network since the consensus mechanism and governance are separate.

Native Token

HBAR is Hedera’s native token, and it’s currently worth $0.05. The coin’s market cap is $1.6 billion, which puts it in the 33rd position in the crypto rankings. HBAR currently has 31.7 billion tokens in circulation, with the maximum set at 50 billion. You can use the token to pay transaction fees in dApps built on this platform.

What Is Chainlink?

Chainlink is a crypto and tech project that allows interaction between blockchain platforms and non-blockchain entities. It’s a middleman that offers hybrid smart contracts, which allow the pulling of external information to use in those contracts.

The platform uses the PoS consensus mechanism, and it uses Ethereum as the hosting blockchain. Securing automation and decentralized data fees while achieving interoperability between blockchains are some top features of Chainlink. The dApps that require cryptographically proven randomness, such as casino games, often use this platform. You can read the HBAR vs LINK comparison to learn more information about both currencies.

Decentralized Oracles

Oracles are Chainlink’s crucial feature since they allow smart contracts to interact with data from the real world and execute actions based on the info received. 

The platform explains it via wagering on a sports match. For example, Denver Nuggets are playing Miami Heat, and Mike bets $10 on Denver, while Eric wagers $10 on Miami. They wager via a smart contract platform, so their funds are now in escrow. For the outcome to be decided, the oracle gets information on the match result.

Data Security and Reliability

The main problem with oracles is how to recognize if the data received is accurate. Let’s say the game’s result the oracle obtained is incorrect. That will lead to the smart contract pronouncing the wrong outcome and awarding a winning wager to those who bet on the wrong team.

It’s why Chainlink pursues Decentralized Oracle Networks (DONs), which will be able to check multiple sources and combine independent node operators. By confirming data in several places, reliability will be maximized.

Tokenomics

LINK is the native token of the Chainlink platform, and its current worth is $6. Together with the market cap of around $3.3 billion, that’s enough to be in the top 25 cryptocurrencies. 

LINK’s price was at $52.88 in 2021, but the crypto crisis lowered the coin’s value significantly. However, it was never close to its all-time low of $0.12 in 2017, showing that it’s strong enough to maintain a high ranking. Although the total supply is a billion coins, only 538 million LINK tokens are currently in circulation.

Hedera vs Chainlink: What Is a Better Investment?

Both projects are exciting, and short and long-term forecasts are optimistic. The value of a single coin is higher for LINK because there are fewer tokens in circulation. Ultimately, it all depends on your decision, and both coins might be worth investing in. HBAR requires less investment per coin, but if you want to diversify your portfolio, nothing can stop you from acquiring some LINK tokens, too. Check out any relevant factors before deciding on a trade, and make sure you made the final call.