Charles Blockchain Insider Q&A - Confused - ADA is not required on Cardano?


#1

Hey all,
A little confused here and was hoping you could clear this up for me and those that are part of the Cardano/ADA community.

Charles was part of a Blockchain Insider interview today - http://bi.11fs.com/43
At the very end (about 3 minutes left), he made the following comment.

“We would like to create a universal framework that allows you to parameterize your asset accordingly and issue your asset. And here’s the most important thing that when you issue it on Cardano our hope is for it to be a native asset, just like ADA. So, you actually pay transaction fees in that asset to the validator’s instead of having to go through ADA to do that. So, it’s a big competitive differentiator between us and Ethereum ERC-20 assets”

What does this mean? Are projects that conduct business on Cardano NOT required to use ADA? I thought ADA was the “fuel” for the network. I get the interoperability but if ADA is not required then what is the point of owning the coin?

Please understand I am all in Cardano, I am just a bit confused by this comment. Was it misspoken or am I missing something as to what owning ADA really means in the long term?

Thanks,
Marmaduke


#2

ADA will still work as the fuel for Cardano through the POS validators, although I have not watched the video, if it turns out to be true that transaction fees from… lets say ABC asset is paid to the validators, the validators are still the ADA Staking nodes that will validate the Cardano platform transactions, and in that case the validators may simply sell the transaction fee’s they are paid in ABC for validating the transaction to increase their ADA holdings

Now I will go listen :wink:


#3

Just for a context - it’s actually described on the first “page” of whycardano, under “USER ISSUED ASSETS (UIAS)”