Strika, a company working on solutions and use cases for the Cardano blockchain, unveiled a new feature for the smart contract platform through its wallet, Warp Transactions. Described as a “game changer for token transfers,” according to an official press release, Warp Transactions was created to reduce the burden of transaction fees paid when sending assets on this network.
Cardano’s New Feature Eliminates Sender Fees, But There’s a Catch
Typically, on Cardano, each token transfer requires the sender to pay a minimum fee of 1.14 ADA to protect against network attacks. However, Warp Transaction now provides an alternative to this mechanism.
Warp transactions are based on the Unspent Transaction Output (UTXO) model. UTXO refers to the smallest amount of digital currency received after a transaction has been executed.
Now, Warp transactions are considered a type of UTXO transaction. They use the UTXOs of the receiver addresses to cover the minimum ADA fee required to process transactions on the Cardano network.
However, there is a clause that this new feature employs a multiple-signature function. Therefore, for any transaction to be completed and published on the blockchain, the recipient and the sender must sign off.
Furthermore, while Warp trading may mark a new era for the ADA community, the feature is only available to users of the Typhon wallet.
Whenever a Warp transaction is initiated, the recipient address is notified and given 24 hours to accept or decline the transaction. During this period, tokens are moved from the sender’s wallet and locked in a mempool, which serves as a “holding area” until the transaction is approved or canceled by the recipient. This mempool is managed by the backend of Typhon Wallet.
ADA Struggling For Success In The Market
In other news, ADA, the native token of the Cardano network, has been moving sideways for the past few days. According to CoinMarketCap data, the altcoin has been stuck in the market between the $0.25 and $0.26 price zone since the beginning of September.
Prior to this market consolidation, ADA was on a downtrend and lost approximately 12.9% in value in August. According to data from Coincodex, the general sentiment around ADA remains bearish, with a Fear and Greed Index of 41.
However, the prediction team predicts that ADA will maintain its market for the time being, reaching around 0.261 in the next five days. At the time of writing, ADA was trading around $0.256 with a loss of 1.09% on the last day, based on data from CoinMarketCap. The trading volume of the token also declined by 7.92% and is now valued at $104.7 million.
ADA is trading at $0.2557 on the daily chart. Source: ADUSDT chart on Tradingview.com
source: www.newsbtc.com
