Key Takeaways:
- Cardano-developing Strica introduces Warp Transactions.
- While the feature eliminates the sender fee, it temporarily stores transactions on the Typhon wallet.
- ADA token did not stir, flatlining along the $0.25 support line.
YEREVAN (CoinChapter.com) — Strica, a developing company for the Cardano ecosystem, introduced a new feature to their Typhon Wallet named Warp Transactions. It allows users to conduct transactions without paying the standard “sender fee” of approximately 1.14 ADA.
Warp Transactions have a privacy catch.
According to the announcement, the feature utilizes multi-signature to make the transaction. In other words, “the Warp Transaction is sent and signed by a sender and is also signed by the receiver to accept the incoming tokens,” says the team.
To do that, the Warp Transactions utilize unspent transaction outputs (UTXOs) from both sides. The team specified that the token-containing UTXOs are blocked until the warp transaction completes or gets canceled. However, the information is stored on Typhon until the receiving party accepts the transaction.
Typically, transactions on Cardano happen in the following sequence. Once built and signed, the transactions are directly sent to be broadcast on the Cardano network. Nodes verify the transactions and let them sit in a so-called memory pool, or “mempool.” Notably, several nodes keep a copy of the transaction. Then, the Network adds the transaction to a block.
Conversely, “Warp Transactions utilizes an intermediate mempool managed by Typhon Backend,” said the announcement. It means that Typhon will temporarily be in charge of private information, which could also mean a bigger risk of a compromise.
Meanwhile, the users have a choice in the matter.
While Warp Transactions is a feature provided by Typhon for ease of doing token transactions, you can always choose not to utilise it and process a normal send transaction.
read the announcement.
Bearish prediction for ADA still stands
While the Cardano Network introduced the feature as a “game changer for token transfers,” the ADA token did not react to the news and remained flat at the $0.25 support on Sep 8. Interestingly, the said level has been a crucial support line to Cardano since January 2023. Therefore, breaking below it brings considerable downside risks to the ADA market.
Cardano’s recent downside momentum has had it paint a “descending triangle,” a bearish continuation pattern characterized by a falling trendline resistance and a flat support line.
As noted in the previous ADA review, the token has retested the support line multiple times since mid-August, though failing to close decisively below it. If a further downtrend occurs, the target price for the Cardano token will stand at $0.04, a drop equal to the maximal formation height.
