Hedera token value on the rise after Google Cloud announcement

When Hedera Hashgraph announced that Google Cloud will join its board of directors in the next few days, the price of the native token of the HBAR network rose more than 5 cents for the first time since the launch of the network. But what will be the reason behind this new collaboration?

Zero monetary investments

As part of the body of consultants who supervise changes to the software for the network and ensure the decentralization of the hashgraph, Google Cloud will become a node and make the hashgraph analyzes available along with other Google public DLT datasets, wrote l advocate for Google Cloud developers Allen Day in a blog post.

Google Cloud is the eleventh member of the board and joins the likes of IBM, Tata Communications and Nomura Holdings. The owners of HBAR seem to have reacted well to the news and the cloud services firm has made it clear that it has no plans to invest in cryptocurrency in the Hedera network.

Google's Day said it was difficult to predict in advance what resources the company would provide or what analyzes it would make available. "We are not providing material financial support, purchasing Hedera coins or providing any other support to the Hedera network or currency," he said.

Google Cloud also stated that it has no plans to use the Hedera consensus service, which allows members to connect private networks to the public network.

Google Cloud technical guide of the project

Google Cloud has joined the board to "provide technical assistance and validate the technology," said Day.

"We are focused on developing solutions that drive the real value of the business across the financial services ecosystem, from capital markets to retail banking and DLT space." In one of his latest blog posts, he praised Hedera's speed and "business transactions with finality".

Hashgraph is smaller than common blockchains because it does not store all the transaction history (although it can be done optionally on a "mirror" network). When Hedera Hashgraph was launched on the mainnet in September, six of the 39 government council positions were occupied.

Even when the price of the platform's token, HBAR, plummeted and Hedera delayed the distribution of the tokens to SAFT owners in an attempt to support the price, none of the members left the board.

"I have followed Hashgraph from the beginning and have always looked beyond the horizon," said Steve Wilson, lead analyst for the emerging technology consultancy Constellation Research. “In fact, in my opinion, Hedera was not designed primarily to support a currency, as it did for BTC and ETH. As a result, it offers a more efficient mix of performance, security and determinism. "