We’re back with part 14 of the cardano network parameters series. Today we explore the critical role of the coins_per_utxo_word parameter in Cardano’s network. While often overlooked, this parameter influences the efficiency, scalability, and security of the Cardano blockchain.
The coins_per_utxo_word parameter in Cardano establishes the minimum amount of ADA required per UTXO entry, measured in “words.” This ensures efficient storage usage, preventing the accumulation of numerous tiny UTXOs that could degrade network performance and increase costs. Currently, it’s set to 4310 coins or 0.00431 ADA.
Its careful adjustment impacts economic transactions and network performance. Discover how this seemingly small detail impacts the broader Cardano ecosystem and why it’s essential for stakeholders and developers to understand.
Read full article here : https://www.lidonation.com/en/posts/coins-per-utxo-word