Warp Transactions is a newly developed system of the Cardano blockchain network. Thanks to this new system, the minimum amount of tokens required to transfer tokens is now dated.
What are Warp Transactions?
Cardano’s latest innovation, Warp Transactions, is game-changing for token transfers. The technology integrated into Typhon Wallet offers a solution to a longstanding problem: the mandatory minimum ADA required for token transfers. Generally, sending tokens on Cardano requires a minimum of 1.14 ADA to accompany the tokens as a protection against spam and attacks. However, the new system allows you to eliminate this requirement.
How does Warp Transactions work?
To understand Warp Operations, you must first have some basic knowledge of UTXOs. At the core of the system, transactions are created, signed, and then broadcast on the network. Warp Transactions are a special type of UTXO transactions. They use multi-signature technology and function without smart contracts. Both the sender and receiver sign the transaction, making it collaborative.
Warp Transactions are exclusive to Typhon Wallet users. Either party can cancel or reject the transaction. Tokens are temporarily “locked” until the transaction is completed or cancelled. Transactions expire after 24 hours if the buyer does not sign.
The receiver’s UTXOs are used to meet the minimum ADA requirement. In simpler terms, the recipient’s wallet pays the ADA bill and saves the sender the extra expense. Multi-signature transactions are Cardano’s old timers. Typhon Wallet has streamlined this process, making it as simple as a few clicks. The buyer will notice an incoming transaction and will need to sign it to accept the tokens. In the opposite case, the transaction can be rejected if desired.
