Cardano, the crypto industry’s first science-based blockchain, has native token functionality that allows new use cases to be explored within the ecosystem.
Native Cardano tokens ensure a number of advantages, such as security, efficiency, interoperability and programmability, leveraging the power and characteristics of the blockchain network to create new opportunities for economic growth and development. ‘innovation.
Input Output Global (IOG), the company that develops the Cardano blockchain, explains that these digital assets are created and executed directly on the blockchain, rather than using smart contracts or smart contracts.
Characteristics of native Cardano tokens
Cardano is a blockchain that is built on the basis of peer review and uses the Proof of Stake (PoS) consensus protocol, which allows it to achieve a level of scalability and energy efficiency greater than that of networks based on the Proof of Work (PoW) protocol. , like bitcoin.
Thanks to this, the creation and development of native tokens on the Cardano blockchain is more energy and cost efficient, IOG noted.
Additionally, since the Cardano blockchain does not use gas to measure its operations, validate transactions, or calculate its commission rates, users can trade the native tokens on the network more cost-effectively, with very affordable commission fees.
Another of the characteristics of native Cardano tokens is the multi-token functionality. With this, users have the ability to transfer multiple tokens in the same transaction or tx within the network, saving them even more on commission fees.
Native tokens on the Cardano blockchain also feature a high level of securitybeing minted directly on the blockchain.
Cardano implements the Extended UTXO (EUTXO) model, which allows developers to create and manage tokens natively on the blockchain without the need to use smart contracts, as is the case on Ethereum with the ERC-20 standard. Similarly, to create tokens on the Cardano network, you do not need to write any code, which reduces the risk of coding errors or malicious code, and with it, the risk of vulnerability.
On the other hand, the native token architecture eliminates the risk of denial of service or DoS attacks through fees, since it allows users to calculate the exact cost of transaction fees before sending the transaction. , explained the company on Twitter.
There programmability and accessibility they also stand out among native Cardano tokens. In terms of programmability, developers can plan the distribution, transfer, and ownership of tokens, enabling the design of more sophisticated applications and use cases that impact the community, including NFTs, DeFi, and chain games.
Other benefits native tokens offer developers include the speed and ease with which they can be integrated into Cardano-based applications and tools, such as digital wallets. “Wallets only need to integrate with the Cardano blockchain once to support all native tokens,” said IOG
Cardano native tokens are also natively interoperable with stringallowing the transfer of different assets within the ecosystem via blockchain bridges and other interconnected chains, such as sidechains.
Over 8 million native tokens minted
With ADA, the native cryptocurrency of the Cardano blockchain, there are more than 8.03 million tokens created natively on the blockchain. Support for these digital assets came with the Goguen era, implemented in 2021.
The growing use of native tokens has been driven by the ease, speed and efficiency that Cardano offers app developers, which is why, according to IOG, more and more developers, entrepreneurs and members of the community are committed to creating innovative and sustainable applications. and use cases on this blockchain.
The Proof of GitHub platform highlighted Cardano developers as the second most active team in the blockchain ecosystem. According to the data, 511 development activities were recorded on this blockchain in the last month.