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What nodes, especially block producers, check to decide if a transaction is allowed is: 1. Are all inputs still unspent, are they still UTxOs? 2. Is it balanced? Is the sum of all ADA and native tokens in the inputs – plus mints, reward withdrawals, and deposits coming back from deregistered stake keys – equal to the sum of all ADA and native tokens in the outputs – plus burns and deposits for registered stake keys. 3a. For inputs on an address with a /public key/ hash: Is there a signature of the transaction with the corresponding private key? (Such a signature of the transaction with a key is called “witness” and a wallet app or other tool creating a transaction can add some of them to the transaction.) 3b. For inputs on an address with a /script/ hash: Does the script evaluate to true? 4a. If stake is delegated or rewards are withdrawn and the stake address is a /public key/ hash: Is there a signature of the transaction with the stake key? 4b. If stake is delegated or rewards are withdrawn and the stake address is a /script/ hash: Does the script evaluate to true? 5. If there is a mint or burn: Does the script corresponding to the policy ID of the minted/burnt native token evaluate to true?

Mike- Автор вопроса
HeptaSean
What nodes, especially block producers, check to d...

It appears that Cardano may not support tokens like Ethereum's ERC20. From what I understand, the script in Cardano only provides a "yes" or "no" response to grant permission for spending the UTXO.

Mike- Автор вопроса
HeptaSean
What nodes, especially block producers, check to d...

So, it's essentially a streamlined blockchain that relies entirely on ADA, offering sophisticated permission controls, correct?

Mike
It appears that Cardano may not support tokens lik...

https://docs.cardano.org/native-tokens/learn/

Mike
It appears that Cardano may not support tokens lik...

At first, we don't *need* ERC20 tokens, because we have native tokens that can be transferred without using scripts at all. For minting and burning, there are scripts (the hash of which is the policy ID of the native token), but that can also be simple scripts just stating “This key has to sign.” and/or “Minting/burning is forbidden after this slot.” But ERC20-like tokens are certainly possible, nevertheless. You can put a ledger data structure into the datum field of an UTxO and write a contract that checks the correct management of this ledger.

Mike
So, it's essentially a streamlined blockchain that...

Somehow. But I don't get what's so special about “relying entirely on ADA”. It's not different from Ethereum relying entirely on ETH or Bitcoin relying entirely on BTC.

Mike- Автор вопроса
HeptaSean
At first, we don't *need* ERC20 tokens, because we...

Thank you for your enlightening response! Your clear and detailed explanation has truly aided in understanding the abstract model proposed in the research paper.

Mike
It appears that Cardano may not support tokens lik...

https://multichain.xyz/ https://www.milkomeda.com/

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