<p><strong>ELI5 for Native Assets</strong> from a traditional blockchain point of view (ERC721, Ethereum, Solana, NEAR, etc):</p>
<p>Native Assets are like Pokemon cards: All the needed information and features pertaining to the asset is directly on the individual card and can be interacted with freely.</p>
<p>ERC-standard tokens(eg. ERC-721) are like Pokemon game cartridges for GBA: There's a minimum information available on the cartridge casing but it is completely useless unless you plug it into a GBA console. The GBA console is needed to interact with the cartridge and everything it offers. The GBA console is to the cartridge what the EVM is to ERC-standard tokens (which are not tokens but rather programs/smart contracts with balances and permissions).</p>
<p><em><strong>Other things</strong></em></p>
<p>Policy ID for Cardano Native Assets is similar to contract address for Ethereum ERC tokens</p>
<blockquote>
<p>The Policy ID can be used to identify a collection of native assets (NFT)? E.g. I can query the blockchain and find every single native asset by Policy ID?</p>
</blockquote>
<p>This is how much you want to mint in a given transaction, you can mint ad infinitum so long as you execute mint transactions via Native Scripts while the Policy is open OR via Plutus scripts per the logic.</p>
<blockquote>
<p>The amount field* for the Policy ID has to be defined, there can't be unlimited supply?</p>
</blockquote>
<p>A slot is currently = 1 second, isn't dependent on usage.</p>
<blockquote>
<p>Policy time locking, how to determine amount of slots in terms of time? Can be average, I guess the slots are computed so depends on the blockchain usage?!</p>
</blockquote>
<p>The Policy script signature is the Verification key hash of the mint-authority/controller/admin, so not wallet address. (Wallet address is derived from a different combination of keys).</p>
<blockquote>
<p>The Policy ID signature is the mint-authority/controller/admin &quot;wallet address&quot;</p>
</blockquote>
<p>Yes you can set multiple required signatures for a policy script.</p>
<blockquote>
<p>Does a Policy ID allow us to set multiple signatures (mint-authorities/controller/admin)?</p>
</blockquote>
<p>keyHash != wallet address. it is the hash of the verification keys. and yes &quot;sig&quot; means &quot;signature&quot;</p>
<blockquote>
<p>for where keyHash is the wallet address and the type &quot;sig&quot; as in &quot;signature&quot;?</p>
</blockquote>

CC BY-SA 4.0
2022-11-12T09:14:44.310Z
2022-11-12T09:14:44.310Z
Pizza Knight
<p>Is anyone capable of providing a high-level explanation of how NFT works in Cardano from a traditional blockchain point of view (ERC721, Ethereum, Solana, NEAR, etc), as I'd be very interested in understanding enough to decide going forward with Cardano for a project?</p>
<p>I've read the <a href="https://developers.cardano.org/docs/native-tokens/minting-nfts" rel="nofollow noreferrer">https://developers.cardano.org/docs/native-tokens/minting-nfts</a> and believe that I understood a bit of it, but got a few questions.</p>
<ul>
<li>The Policy ID can be used to identify a collection of native assets (NFT)? E.g. I can query the blockchain and find every single native asset by Policy ID?</li>
<li>The amount field* for the Policy ID has to be defined, there can't be unlimited supply?</li>
<li>Policy time locking, how to determine amount of slots in terms of time? Can be average, I guess the slots are computed so depends on the blockchain usage?!</li>
<li>The Policy ID signature is the mint-authority/controller/admin &quot;wallet address&quot;?</li>
<li>Does a Policy ID allow us to set multiple signatures (mint-authorities/controller/admin)? Guess that's what the <a href="https://github.com/input-output-hk/cardano-node/blob/c6b574229f76627a058a7e559599d2fc3f40575d/doc/reference/simple-scripts.md" rel="nofollow noreferrer">https://github.com/input-output-hk/cardano-node/blob/c6b574229f76627a058a7e559599d2fc3f40575d/doc/reference/simple-scripts.md</a> is for where keyHash is the wallet address and the type &quot;sig&quot; as in &quot;signature&quot;?</li>
</ul>
<p>Thank you!</p>

<nft><native-assets>
ELI5 Explain native assets at higher level?
# ELI5 Explain native assets at higher level?

(Asked by: username_0 on 2022-11-11)

Is anyone capable of providing a high-level explanation of how NFT works in Cardano from a traditional blockchain point of view (ERC721, Ethereum, Solana, NEAR, etc), as I'd be very interested in understanding enough to decide going forward with Cardano for a project?

I've read the <https://developers.cardano.org/docs/native-tokens/minting-nfts> and believe that I understood a bit of it, but got a few questions.

* The Policy ID can be used to identify a collection of native assets (NFT)? E.g. I can query the blockchain and find every single native asset by Policy ID?
* The amount field\* for the Policy ID has to be defined, there can't be unlimited supply?
* Policy time locking, how to determine amount of slots in terms of time? Can be average, I guess the slots are computed so depends on the blockchain usage?!
* The Policy ID signature is the mint-authority/controller/admin "wallet address"?
* Does a Policy ID allow us to set multiple signatures (mint-authorities/controller/admin)? Guess that's what the <https://github.com/input-output-hk/cardano-node/blob/c6b574229f76627a058a7e559599d2fc3f40575d/doc/reference/simple-scripts.md> is for where keyHash is the wallet address and the type "sig" as in "signature"?

Thank you!

**Tags:** nft, native-assets

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## 1 answers

### Answer by username_1 on 2022-11-12. Score: 1

**ELI5 for Native Assets** from a traditional blockchain point of view (ERC721, Ethereum, Solana, NEAR, etc):

Native Assets are like Pokemon cards: All the needed information and features pertaining to the asset is directly on the individual card and can be interacted with freely.

ERC-standard tokens(eg. ERC-721) are like Pokemon game cartridges for GBA: There's a minimum information available on the cartridge casing but it is completely useless unless you plug it into a GBA console. The GBA console is needed to interact with the cartridge and everything it offers. The GBA console is to the cartridge what the EVM is to ERC-standard tokens (which are not tokens but rather programs/smart contracts with balances and permissions).

***Other things***

Policy ID for Cardano Native Assets is similar to contract address for Ethereum ERC tokens

> The Policy ID can be used to identify a collection of native assets (NFT)? E.g. I can query the blockchain and find every single native asset by Policy ID?

This is how much you want to mint in a given transaction, you can mint ad infinitum so long as you execute mint transactions via Native Scripts while the Policy is open OR via Plutus scripts per the logic.

> The amount field\* for the Policy ID has to be defined, there can't be unlimited supply?

A slot is currently = 1 second, isn't dependent on usage.

> Policy time locking, how to determine amount of slots in terms of time? Can be average, I guess the slots are computed so depends on the blockchain usage?!

The Policy script signature is the Verification key hash of the mint-authority/controller/admin, so not wallet address. (Wallet address is derived from a different combination of keys).

> The Policy ID signature is the mint-authority/controller/admin "wallet address"

Yes you can set multiple required signatures for a policy script.

> Does a Policy ID allow us to set multiple signatures (mint-authorities/controller/admin)?

keyHash != wallet address. it is the hash of the verification keys. and yes "sig" means "signature"

> for where keyHash is the wallet address and the type "sig" as in "signature"?


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