Warp Transactions are based on the Unspent Transaction Output (UTXO) model. UTXOs refer to the small amount of digital currency after one executes a transaction.
Now, Warp Transactions are considered a type of UTXO transaction. They use the receiver address’s UTXOs to cover the minimum ADA fee required to process transactions on the Cardano network.
However, there is a clause that this new feature employs a multi-signature function. Therefore, the receiver and sender must sign off for any transaction to be completed and published on the blockchain.
Furthermore, while Warp Transactions may mark a new era for the ADA community, this feature is only available for users of the Typhon Wallet.
Whenever a Warp Transaction is initiated, the receiving address is notified and given 24 hours to accept or reject the transaction. During this period, the tokens are moved from the sender’s wallet and are locked in a mempool, which acts as a “holding area” till the receiver approves or cancels the transaction. This mempool is managed by the backend of the Typhon Wallet.
In other news, ADA, native token of the Cardano network, has been moving sideways over the last few days. According to data from CoinMarketCap, the altcoin has been stuck in a market ranging between $0.25 and $0.26 price zone since the start of September.
