Native tokens on Cardano

The possibility to issue tokens on Cardano increases the utility of the network. It will bring network traffic and new users. After the Mary hard-fork, Cardano will become a multi-asset ledger. Let’s have a look at what it means and what it brings to the Cardano ecosystem.

What are native tokens?

Cardano’s security and decentralization are related to ADA coins. ADA is the cryptocurrency of the Cardano network and you can stake it. You can also send ADA coins from address to address. Besides ADA coins, it will be possible to issue other tokens that will have similar properties as ADA coins. It will be possible to send them from address to address. The whole history will be stored in the blockchain and nobody will be able to change it. Regarding decentralization, sending ADA coins or tokens is basically the same process with the same properties. It will be possible to create a transaction that will transfer more assets at once. For example ADA coins and a few tokens.

Issuing tokens is a centralized process since it is a decision of a single entity or a group of people. Once tokens are issued, operations with tokens will be decentralized in the same way as it is with ADA coins. It means that once you hold a token it is only yours and nobody including the issuer can take it from you. The issuer of tokens needs to provide a token name…