Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Other Popular Cryptos / Coins => Cardano Forum => Topic started by: Malam90 on February 13, 2021, 08:54:19 AM
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Last week, IOHK, developers of the Cardano blockchain, updated the platform’s ‘native tokens’ testnet.
The upgrade provides multi-asset support, allowing experimenters on the testnet to test and become familiar with utilising cryptocurrencies from other blockchains on Cardano and creating their own tokens prior to mainnet deployment. The update introduces the ability to create ‘native tokens’. This is another important step in the ‘Goguen’ rollout, which, along with multi-asset functionality, will see smart contracts enabled on Cardano this year.
Native tokens are an exciting utility feature for Cardano, which will allow it to handle tokens and cryptocurrencies from other blockchain platforms in the same way and with all the key functionality available to Cardano’s native currency, ada.This solution allows tokens from Ethereum, whether for monetary value or utility intentions, to be represented on Cardano without the need for smart contracts or custom code. It also enables those tokens to enjoy all the key benefits of Cardano’s principal currency, ada, meaning that other blockchain applications from other platforms can take advantage of Cardano’s superior speed, security and reduced transaction costs.
The current tokenization process on other platforms like Ethereum requires the creation and implementation of custom code. This adds a layer of complexity, cost (other chains require smart contracts to execute for tokens), and inefficiency, as token code for both standards is replicated and adapted, rather than being part of the system itself. It also leaves room for human error. If custom code is done sloppily, it can introduce bugs that could lead to financial loss, as was seen in 2017 when software bugs led to the loss of $300m worth of Ethereum’s cryptocurrency.
Cardano native tokens are set to change this. The solution enables tokens to behave in a similar way to Cardano’s principal currency, ada, allowing projects to access market-leading levels of speed and security, and minimising unnecessary costs. Source of News (https://www.cityam.com/native-tokens-on-cardano/)
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This is quite interesting, i appreciate the fact that i came across this post as it was an information that have not reached me although i noticed that Cardano has been growing steadily recently. So finally we are beginning to see ETH competitors in terms of native tokens and smart contract deployment.