Today we’re launching native tokens on Cardano, kicking off a whole new multi-asset era for Cardano. Over to David on what to expect…
Native multi-assets have arrived, but how do they work and why are they a big deal? Let me explain.
The first thing I want to do is explain how Ethereum tokens work. Because as of now, it is the most used platform for issuing crypto tokens. The way Ethereum tokens are issued is like this. You’ve got the Ethereum blockchain, then through a custom coded smart contract, you can issue a non-native token. This token won’t have all the advantages of Ethereum and you have to pay for smart contract execution every time you move your token. This is why people complain about Ethereum fees being so high. It’s not very efficient and it leaves the door open for human error when coding smart contracts. Now with Cardano, when tokens are issued on the blockchain, they don’t require smart contracts, which means one, no custom code, which has its own cost. Because if you can’t code yourself, you’ll need to hire someone to do that. But also no smart contract fees to talk to the blockchain.
In addition to lower cost, tokens issued on Cardano will receive the full benefits of the Cardano blockchain, such as the same level of safety and security as ADA itself and eventually a governance system as it rolls out. So let’s take a quick look at how native tokens look inside the Daedalus wallet. This is your Daedalus wallet right here with ADA inside it with only ADA inside this wallet, it will look like this with a space below where native tokens will appear. Once you’ve received native tokens, they will appear right here. Each token will have some data on it along with more information, as you click on the fingerprint. Quick note: ADA does not have a fingerprint, so if you ever see ADA show up with a fingerprint it’s fake. When it comes to sending and receiving any wallet address can be used to send and receive both ADA and native tokens. That keeps things simple and you can never mess it up.
And when it comes to making transactions, you can send multiple tokens in a single transaction, saving you on multiple transaction fees if you have to move multiple tokens to the same address.
As of today, March 1st, native tokens are live on the Cardano mainnet, but you won’t see them in your Daedalus wallet just yet. Daedalus Flight was just released today, and that is the testing ground where we will continue to monitor things and make sure that everything is working correctly. And then in the following weeks, an updated Daedalus wallet for the mainnet will be released. Okay. So that’s pretty cool. But what about forging tokens? How do I make tokens? How does that work? As of today, fungible and non-fungible tokens can be forged using the CLI interface. This does require some technical knowledge, so if that’s not you – you’ll have to wait. But that’s only temporary because in the coming weeks, a user-friendly interface will become available that will make creating fungible tokens more accessible to the average, Joe. This interface will only be for fungible tokens at launch. Well, NFTs can still be created through the CLI with support for NFTs coming later on. Today is a big day in Cardano history. It’s the biggest milestone since the launch of Shelley back in July, 2020, and the next stop will be full integration of Plutus core, which brings smart contracts online making 2021 most definitely the year of Cardano.
You can try out the first native tokens implementation by downloading Daedalus Flight, only from our OFFICIAL site: https://daedaluswallet.io/en/flight/