Cardano ready for DeFi revolution: Metadata for transactions

  • The implementation of metadata for transactions makes Cardano ready for the ‘revolution in the decentralized finance market’.
  • Marlowe provides a DeFi platform that can be used by millions of people and companies based on ready-made templates.

In a new blog update, Alan McSherry, Solutions Architect, presented the latest updates in the development of Goguen. One of the most important features is the implementation of metadata for transactions. In today’s world, the volume of financial transactions is growing rapidly. Not only are remittances processed, but with each transaction different values and information can be transferred.

Bitcoin can be used for payment in an online store. However, ownership of the blockchain cannot be recorded or changed. Metadata offer extensive possibilities for storing ownership, supply chain tracking information and many other tamper-proof options in the blockchain:

Metadata is a handy way of certification and validation. It allows cryptocurrency assets to hold historical ownership, transfer or value details. This is highly beneficial when working with non-fungible – unique – assets representing value such as property or intellectual rights, for example. Additionally, a range of documents can be signed and certified using a public key that proves the document’s legitimacy.

McSherry describes that previous blockchains support 40 to 80 bytes of metadata, while Cardano currently supports 16 KB, after deducting most of the remainder of the transaction such as UTxOs, inputs and outputs. The provision of metadata on Cardano will be implemented through early commercialization through the Atala product line, Atala Prism, Atala Trace and Atala Scan.

Atala Prism is a decentralized identity system that stores metadata for certification and storage of DIDs and DID documents on Cardano. Atala Trace and Atala Scan are developed to enable brand owners to improve the scalability of supply chain processes and to trace product provenance and auditability. Transaction metadata is an important feature of Goguen’s features and Smart Contracts functionality and will be enhanced with numerous features in the coming months.

Marlowe DeFi platform offers ready-made templates

Charles Hoskinson has informed in a new video update about the current progress of Cardano and its transformation to the Goguen era. The IOHK CEO explains that the requirements for a Smart Contracts platform have changed significantly compared to when he founded Ethereum in 2015. The new Marlowe project is a platform for decentralized finance and incorporates the research and development of the last 20 years in a wide range of areas and, according to Hoskinson, represents an important milestone.

Marlowe offers peer-to-peer loans, contracts for difference (CFDs) and a number of other financial instruments that can be used by individuals and businesses alike. Once Goguen is completed, the implementation of Marlowe will be completed. Users of the platform will be able to launch ready-made DeFi Contracts and crypto-assets and transfer the terms of the contracts.

Hoskinson states that many more templates will follow in the next 6 months. Marlowe is a Domain Specific Language (DSL), simply put a programming language for “Financial Contracts”. According to Hoskinson, Marlowe is an entry point for millions of people and companies from various industries:

Marlowe is an entry point and an example of how to build a DSL, develop a DSL and bring the right people to the table.

In addition to the evolution of Marlowe, the implementation of metadata for transactions is an important step for the decentralized finance sector. You can watch the full video update here:

About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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