While there are no functional level 1 smart contracts yet, Cardano’s innovative developers have recently developed methods for mining worthless tokens. This experience of placing unique data on the blockchain is reminiscent of the pre-ERC-721 record time for Ethereum – and what’s more, so far, it has proven to be extremely popular among tokens that are usually traded.
In today’s Reddit post, ADA Technology Management (ATM), the operator of the staking conglomerate in Cardano, revealed what they claimed were two images of NFTs they held in the series. In this case, the company said it plans to offer the NFT scenario as a service for gathering delegates.
However, so-called NFTs have several disadvantages. Since Cardano does not yet support smart contracts or has an NFT token standard, an original token must be created for NFT users.
“The tokens on Cardano are original and on the same level as ADA. Instead of smart contracts, the flow of a particular group of tokens is governed by so-called “minting policies”. Explained by Alessandro, the self-proclaimed “minds” behind SpaceBudz, the original collectible project from Cardano and the author of the proposal. Improving Cardano to establish the Cardano NFT metadata standard, NFTs are actually Cardano tokens with a count of 1.
Developers can then include a link to the Arweave address and / or the interplanetary file system in the metadata of the token where the image is stored. The NFT example shows that the Metadata portion of the coin transaction includes a link to the IPFS address showing the associated SpaceBud. The end result is a completely unique token that is permanently registered and can be exchanged on the Cardano-NFT blockchain by many, if not all, drivers.
Although the developers of additional hoops have to “jump” to create them, NFTs have proven to be very popular among users.
SpaceBudz sold all 10,000 NFTs in just three days at 50 ADA each, Alessandro said, and there is already a passionate aftermarket where a private SpaceBudz sold for $ 40,000.
Even before SpaceBudz, CardanoKidz worked on the original Cardano NFTs back in August 2020. According to Zach, a member of CardanoKidz’s marketing team, several presale rounds were sold “within hours of launch.” The Satoshi-inspired baby sold for 32,000 ADA even before the coins were minted, and the NFT went live in late March.
Zac Credits Tool as a socially designed coin and coin tracking policy designed to make life easier for developers. Cardano’s official developer, IOHK, seems to be embracing the new vertical too, as Chief Engineer Polina Vinografoda gave a quick guide on preparing the NFT for the series on Tuesday.
A number of other projects complement the entry-level ecosystem, including CryptoPunk-based CardanoBits and CNFT’s coin platform. While Cardano NFTs are still in their infancy, they are also cheaper than Ethereum coins: Mint coins cost around $ 2 or $ 2.50.
While the developers working in this growing community are doing well for now, they end up happy with smart contracts that make life easier.
“We can’t wait for smart contracts to emerge to expand functionality, but we have the tools and expertise to make NFT work with Cardano,” Zack said. “It was an incredible journey.”