- IOG group has announced the unveiling of a new tool to pay transaction fees for Cardano.
- The new “Babel fees” technique will allow users to use native tokens for payments.
- This opens up thrilling new possibilities for the up-and-coming blockchain Cardano.
In a new development, the IOG group has recently announced the Babel fees mechanism for the Cardano blockchain. This would enable it to give a tough competition to its rival, the Ethereum chain.
What do Babel fees mean?
The term is derived from the famous The Hitchhiker’s Guide to the Galaxy, where a specific unique creature, the Babel fish, could hear and translate all the languages to a language of its own. Similarly, the term in the crypto world means the payment of transaction fees in any token of the user’s choice. This revolutionary mechanism now enables any stablecoin user to instantly transfer their tickets to their wallets, in addition to using any cryptocurrency to pay their transaction fees.
The digitization hurdle:
In an experiment to digitize African fiat currency, the major problem in transactions was purchasing and maintaining a fair amount of ADA for crypto to fiat currency conversion. This problem is now virtually solved in the Cardano chain due to current developments. ADA is no longer necessary as this new and revolutionary mechanism now transfers any stablecoin tokens directly to a person’s digital wallet, which is the first promising step in the mass adoption of cryptocurrencies financial system.
Cardano’s unique position:
While Ethereum may have been the first option for several crypto-enthusiasts to adopt the phenomenon, the Cardano chain’s apparent benefits trumped the former. Cardano may not be that popular, but its ledger utilizes the Extended UXTO (EUXTO) model for storing and validating transactions. The beauty of the model is that rather than a single token, it can carry a bundle of tickets, not necessarily of the same origin, for its transaction. Moreover, the blockchain’s uniqueness stems from the powerful feature of precisely predicting the cost required to post a valid transaction before actually posting it. This is not enjoyed by other blockchains, especially Ethereum, leading to incorporating the Babel fees mechanism for Cardano. Now, its native cryptocurrency would gain more excellent value and improve its market share while also opening up thrilling new possibilities for liquidity providers to explore new business models.