Nfts
Cardano Advances Blockchain Innovation with CIP25 Metadata Validation, Boosting NFTs and AMMs
- L2 framework developer Paima Studios has announced a new way to access transaction metadata directly from Cardano’s smart contract language, Plutus.
- The new Aiken smart contract accesses the transaction hash, which contains metadata, opening new opportunities in AMM NFTs, on-chain gaming, interoperability, and more.
As Cardano grows to become a thriving decentralized ecosystem, one of the challenges that has plagued the network is the inability of the native smart contract language, Plutusto access transaction metadata, retain NFTs, on-chain gaming, and more. Paima Studios, a Web3 application engine company, has now solved this challenge.
Paima co-founder Sébastien Guillemot announced the new update over the weekend.
See more
We managed to get a Cardano Plutus script to validate CIP25 metadata 🔥
Big implications and many new possible use cases:
・AMM NFT (not easily achievable in EVM!)
・New interoperability standards
・Chain Gamesand we just made it open-source🫡
How did we get there? ↓🧵 pic.twitter.com/KUikGQtWzX— Sébastien Guillemot (@SebastienGllmt) July 6, 2024
Cardano NFTs, which have become increasingly popular— are issued in accordance with the CIP25 token standard. This standard, similar to Ethereum’s ERC-721, defines how NFT issuers define an NFT’s attributes, such as its image, name, URL, and more on its transaction metadata.
The challenge for Cardano developers so far has been that the network’s smart contract language, Plutus, is unable to access this metadata. This has prevented dApps built on Cardano from accessing this data and limited the extent to which the network’s NFTs could be used.
First of all, it is worth noting that this is not just a Cardano problem. Ethereum, although much more advanced, also suffers from similar flaws. Ethereum developers overcome this challenge by using oracles that bind to off-chain data or by adding a complex mechanism.
Cardano developers have also tried to solve this problem. The most common solution is a new improvement proposal: CIP68. This standard completely abandons transaction metadata and turns to an entirely new on-chain data system called datums.
The CIP68 standard solved the problem but created new challenges. For example, many Cardano-based tools still support the previous standard, CIP25. It is also more expensive because it relies on references, which require twice as many UTXOs, making it twice as expensive as the previous standard.
Solving Cardano’s NFT Transaction Metadata Challenge
Guillemot and his team at Paima propose a new approach that aims to access metadata directly via Plutus, regardless of the token standard. To do this, the team uses Plutus to access the transaction hash, which contains the metadata.
See more
But what if we could access tx metadata (CIP25 and above) directly from Plutus? 🤔
It turns out you can do this with a clever trick!
Plutus cannot access the metadata directly, but can access the tx hash (which contains the metadata!) pic.twitter.com/pmDxqc8ohK
— Sébastien Guillemot (@SebastienGllmt) July 6, 2024
Under this proposal, a Plutus smart contract is armed with the final transaction hash and proceeds to provide all other fields and verify that the hash matches.
Guillemot explained the mechanics, declarant:
We created an Aiken smart contract that does exactly that: it reconstructs the transaction binary data in Aiken and checks if it matches the hash! This answers one of two questions: is it feasible? Is it efficient/cheap enough?
Guillemot’s team found that this new approach costs half as much as the current CIP68 standard because it reduces the number of UTXOs.
Meanwhile, ADA is trading at $0.3744, gaining 2.36% over the past day, where it dropped to a 24-hour low of $0.3335 before making a comeback.
Recommended for you:
No spam, no lies, only insights. You can unsubscribe at any time.