Affect on Cardano network using multiple payment addresses

roomy · 26 September 2021 17:48

Hi All

Bit of a random question, but hoping someone might have some ideas. I’ve noticed with NFT drops, that there will be one payment address used for all minted NFT’s. So thats one address receiving up to 10,000 transactions if not more, the node then mints the NFT and it’s sent back to the buyer. Several projects over the last few days have had real issues with the network congestion and wallets being able to keep up.

Would there be any advantage to using one unique payment address per NFT? So instead of one payment address receiving thousands of transactions and having to submit the transactions for minting and then sending the tokens to the buyer, there would be one payment address per transaction.

Would this make the congestion worse / better or make no difference at all?

mcrio · 26 September 2021 21:10

Just to touch the cost and one address per NFT question, that would require you to have token deposit for each NFT, ie 1.5 ADA * 10K tokens = 15000ADA.

github.com

Emurgo/yoroi-frontend/blob/0038bc0afc5066904c59f376bef56c5e8581c4f7/docs/readme/cardano-token-deposit-explained.md

# Cardano Token Deposit Explained

## Intro

Storing any assets on the Cardano blockchain "costs" some money, but you are not actually paying them to anyone, instead you are just depositing them as a collateral to ensure that you have some motivation to not leave lots of worthless assets just lying around forever and forget about them.

For example, at the moment it takes at least 1 ADA to store any ADA, which might sound weird, but in reality it just means that you cannot send any amount less than 1 ADA (for now, but it can be changed at any moment as a simple protocol parameter). This ensures that any non-empty wallet will have at least 1 ADA in it, which might be enough motivation to not just leave it there and rather get it out and send it into circulation.

Similar to that, storing any native tokens or NFTs requires having a minimum deposit of ADA and this number scales depending on how closely together or separately apart the assets are being stored.

## "Storage boxes" analogy

Whenever someone else sends you a token or an NFT, you can imagine it as if you are receiving a separate new box with this token and some ADA in it. This is due to the Cardano blockchain having the UTxO technical model, more similar to Bitcoin and different from Ethereum. The received box is sitting in the wallet separately from all other boxes received previously, and the box is required to have enough ADA deposited to store the ADA itself and the token.

If you have received many NFTs or separate token transactions, your wallet has many separate small such boxes where each box has 1 NFT, for example, and enough ADA as a deposit for that NFT, for example 1.5 ADA. Any of these small boxes are not spendable by themselves, e.g. you cannot just send someone a 1.5 ADA box with an NFT, because the amount after paying the transaction fees might not be enough as the required deposit for a box like that.

This way, if you have received 20 NFTs as 20 separate boxes with 1.5 ADA in each box - Yoroi will display that you have ~30 ADA of **locked asset deposit**. So, for example, if you have 100 ADA in total and you see that you have 30 ADA of locked asset deposit - it might be **hard** to spend anything more than 70 ADA. Hard, but still possible, due to repackaging.

## "Repackaging"

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Affect on Cardano network using multiple payment addresses

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