Wednesday, May 12, 2021

Cardano Introduces Registry for Native Tokens. Why Is This Important?

According to the latest report from the Cardano Foundation, Cardano Token Registry for On-chain Identifiers has been released.

Going by the report, the recent development is the first and most important step in supporting the growth of the Cardano ecosystem.

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Cardano Foundation tweeted, “We are delighted to reveal the Cardano Token Registry for On-chain Identifiers. This is one of the first and most important steps in formalizing and supporting our growing ecosystem.”

What’s the Meaning of Cardano Registry and Why It’s Important?

According to a blog post captioned with the announcement by the Foundation, Cardano Registry is a centrally-managed register of Cardano native tokens data and information.

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The blog post reads in part as follows:

“At its core, the Registry is expected to function as a truth source and potentially as an eventual consolidation location of ‘on-chain identifiers’. These identifiers include public keys, hashes, token addresses, minting policies, and more.

“The Registry will then map these identifiers to human-readable attributes. For those less technically inclined, this essentially means that you or other service providers will be able to read information about a token through the registry in a format that makes sense to a non-developer. This could include a token’s name, a short description of its function, an asset name, and a minting policy ID.”

The report further stated that it’s always difficult to collect detailed information about individual tokens in an ecosystem where hundreds or thousands of native tokens are being minted on a weekly basis, hence the emergence of the Cardano Registry, which will be centrally managed by the Cardano Foundation. It’s majorly designed to empower the ecosystem through access to the most relevant data.

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Moreover, the Cardano Registry gives users access to the true character of native tokens deployed on the Cardano blockchain via metadata and other descriptive information that can be read by humans.

The report added that this data will eventually be available to view alongside native tokens through Daedalus and Yoroi wallets.

The following are the major benefits of registering a native token on the Cardano Registry as stated in the blog post:

  1. Authenticity – Like other blockchains, it is technically possible to mint a token with the same name as another token. To prove your token’s authenticity, you could submit it to the Cardano Registry where users will be able to verify its minting policy.
  2. Metadata discovery – It is possible to view and explore descriptive on-chain identifiers, including metadata, through the Cardano Registry. This may be essential for users of a DApp or NFT token.
  3. Verification – Human-readable Policy IDs, token names, and tickers make it easy for token holders and users to verify native assets on Cardano.

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Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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