Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%.
Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%. By Hannah Perez

NFTA tokens will be given away to those who contributed to the launch of Cardano’s new developer portal. Similar to NFTs, but different from Ethereum-based

tokens.

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The Cardano Foundation, the organization responsible for providing support to the Cardano ecosystem, introduced a new type of token based on the blockchain on Wednesday. It is a “non-fungibletoken

of appreciation/gratitude,” or NFTA for short.

Similar to NFTs, Cardano’ s group of developers have become pioneers in minting an alternative type of token to the popular collectible assets. With scarce properties like NFTs, Cardano’ s blockchain-based

NFTAs will be awarded as a gesture of appreciation to programmers and developers who have contributed to the project’s progress.

The nonprofit reported the issuance of the new tokens

via

its Twitter account

.

The Cardano Foundation detailed that the launch of the NFTAs were a way to celebrate the creation of the official development portal.

The NFTAs areNFTs that show appreciation to the ten developers who provided feedback and helped build the developer portal.

NFTAs are NFTs that show appreciation to the ten developers who provided feedback and helped build the developer portal. Think of them as “certificates of participation” when you attend a seminar or event that they hand out to attendees. Only they’re digital!

What are the new NFTAs?

According to the information, NFTAs feature the same properties of scarcity and non-exchangeability that characterize NFTs. Although their main utility lies in the fact that the developers of Cardano will be able to leverage these tokens to highlight a topic or project within the new portal.

For example, you can highlight a project they’re working on or inform the Cardanocommunity about a specific topic,” they commented on this. Featured articles can be found on Cardano’s developer portal blog.

As we have previously reported, NFTs are scarce digital assets based on Blockchain that can represent almost anything – tweets, art, game items… even genetic code – and be sold as certificates of ownership. This year, NFTs have gained a lot of popularity in the crypto space, proving to be a highly lucrative market.

One of the highlights of the Cardano Foundation’s minting of NFTAs is that they would be the first non-fungible tokens to be issued on the blockchain in Cardano. Recall that this network has not yet deployed smart contract functionality, so it does not have the features to mint tokens, including NFT.

Different from EthereumNFTs

However, this novel asset class did not require smart contracts in order to be created. As explained by the developers, the new tokens are minted in accordance with the CIP 721 metadata standard, a proposal a group of developers from Cardano focused on NFT. This format allows users to attach metadata to the token so that the information can be stored on the token. Cardano token so that the information can be stored in the Blockchain.

“UnlikeERC-20 tokens from <a href=”https://www.diariobitcoin.com/glossary/ethereum/” target=”_blank” rel=”noopener”>Ethereum, Cardanodoes not require a smart contract.Instead, tokens are treated like Cardano’s native token, ADA,” they explained in the release, adding:

‘Because tokens in Cardano are native, the link from the token to the metadata must be established differently than Ethereum, which creates the link using smart contracts. For Cardano to make the link unique, CIP 721 suggests that the metadata be attached to the transaction where the token was created.

To ensure the authenticity of these tokens and their metadata, the official Cardano Foundation wallet authorized transactions to mint them. The token minting process can be verified by a QR code that sends everyone to the browser of Blockchain at Cardano. In addition, tokens can be verified through the organization’s official NFTA page.

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Cardano records 20% rise

In other ecosystem-related news Cardanothe network’s native currency, ADA, experienced a meteoric rise in price on Wednesday. Amid an uptrend in the cryptocurrency market, ADA draws attention for registering one of the highest percentage rises among major digital assets by market capitalization.

The cryptocurrency Cardano has risen nearly 20% in the last 24 hours, a rise that brings it to trade at USD $1.88, a price very close to its all-time high above USD $2, reached in May this year.

Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%.Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%.

The price increase of ADA, the fifth largest cryptocurrency by market capitalization, comes as<a href=”https://ww w.diariobitcoin.com/glossary/bitcoin/” target=”_blank” rel=”noopener”>Bitcoin (BTC) has managed to break through the USD $46,000 barrier for the first time in three months. Likewise, the price rise of the token of Cardano token also comes amid expectations for network upgrades that will finally bring smart contract functionality.

Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%.Cardano Foundation introduces new token type called 'NFTA' as ADA rises 20%.

Charles Hoskinson, founder of Cardano and CEO of blockchain development company , IOHK, stoked hopes for the impending upgrade on Tuesday. During a live stream, he expressed confidence about the early arrival of the latest stage of the multi-phase upgrade:

We are on track to announce on Friday […] the date for the Alonzo hard fork event, and at that time you will be able to execute smart contracts on Cardano.

Recommended reading

Sources: U.Today, Cardano Foundation, archive

Version by Hannah Estefania Perez / DiarioBitcoin

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