Ultimate Defense

"It's...Madness. He's walking atop of Lava...As if it was winter earth!"

Ninjutsu has a concept known as Counterbalancing. This concept states that; two techniques of the same nature would cancel each other out if the same amount of chakra was put into them. For example, in Kakashi's fight with Kakuzu, he was able to cancel Kakuzu's Lightning Release: False Darkness by deflecting it with his own technique, the Lightning Cutter. Knowing this absolute rule Hinokagatsuchi created a defensive technique to fight back against Fire Release users as well as make better use of his Lava Release. It begins by circling fire release chakra through his body and creating a thin layer of armor. There are two forms of this ability. First, he can use his Ultimate Defense to cancel out other fire release jutsu by increasing his thin layer to a match of his attackers. This counterbalances and erases said attack. His second method is using the second principle of counter balancing;

"However, if one of the techniques had more chakra put into it, it would overcome the other technique. Not only that, but the stronger technique would absorb the weaker one, and the user of the weaker technique would receive more damage than the original amount, as he will have added to the technique."

By increasing his thin layer of fires heat, he can absorb an enemies fire attack, adding onto his thin layer, turning it into a blazing inferno that surrounds his body. This form is a step for his ultimate taijutsu attack; DRAGON KICK. Dragon Kick utilizes a massive amount of chakra normally. So to overcome this drawback, he uses the opponents jutsu to increase it's power.