Relationship ADA <-> Usecase

Hello all,

I have a question which I have not been able to explain to myself through research until now.

The Mary Hardfork and further progression within the Goguen era is continuously expanding the utility of the Cardano Blockchain.
With native tokens and smart contracts, I expect an ongoing implementation of usecases on the Cardano Blockchain.

I would like to understand the relationship between usecases on the Cardano Blockchain and the associated / required ADA’s.

Prominent example (exemplary):
I as a winemaker would like to establish supply chain tracking of my wine bottles based on Cardano Blockchain.
I have an output of 100,000 wine bottles per year.
In the blockchain, I would like to store information about the mountain, grape variety, date harvested, date bottled, etc., so that it can be retrieved by the customer.

As a winemaker, how many ADA do I need to hold for my 100,000 wine bottles?

Thanks and BR

Hi Oli,

I would assume you would be looking at using QR Codes to store this information for a customer to scan. The beauty of Cardano is the cost of storing metadata depends on the total size of a transaction.

With the current fees, the formula is: 155381 lovelace + 000044 lovelace * bytes where bytes is the total size of a transaction. The maximum size of a transaction is 16384 bytes, and thus the most expensive transaction you can create is 0.876277 ADA.

Now it all comes down to how you want to store the data. If a 21 x 21 Module QR Code (9 bytes) was large enough to store the information you were looking at, you could theoretically store 1750 QR Codes per transaction. That would mean a total of 57 transactions to store your 100,000 bottles of wine. Because we have to factor in the rest of the transaction data into the size, lets just use the maximum cost of 0.876277 ADA per transaction totalling a whopping… 49.947789 ADA to store your 100,000 bottles of wine.

Now there is a lot of other factors, you will need development to scan the QR codes/lookup the appropriate transaction/find the appropriate QR code etc… But this gives you an idea :slight_smile:


Hi Opercentpool,

thank you very much for this detailed explanation giving me a brief understanding.

To explain it to me:
To write the information to the blockchain I need transactions, which I pay through ADA.

What happens to the ADA which I used for the transactions?
Does anyone receive them? Are they used up afterwards?

Thank you and best regards

Correct, in it’s current form you can store metadata through transactions.

You can create a transaction with yourself so the only fee you incur is the transaction fee.

Thx 0percentpool

Wat is happening then with ADA spent for fees?
Are they used up then? Who is receiving the fees?


Fees are pooled and then distributed to all pools that created blocks during an epoch.

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Winemakers could come up with their own coin on Cardano and run their own pools. ADA wouldn’t be needed and they’d figure out the value of their transactions for their own specific use case.

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@obln77 : it will be used to pay the reward for the stake pool because they process the blockchain in Cardano network. CMIIW.

Thx all for explanation