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Charles Hoskinson, co-founder of Cardano speaks about upcoming testnet

By Inkarias - 2019-11-14

Charles Hoskinson, co-founder of both Ethereum and Cardano currencies has published today a video to share information about the balance check ahead of the incentivized testnet launch.

How does testnet works

It is important to know some notions such as UTXO to fully understand the Cardano ecosystem and the upcoming changes. A UTXO is an output based blockchain with a genesis block, an initial distribution of funds and then addresses. When a user transacts, each block contains a list of those transactions. If one were to look from the genesis block to the most recent block, they could create what is known as a UTXO ledger. This element determines the current ownership of funds. A UTXO snapshot traces the entire blockchain up to a block. It then copies the state of the system into a new genesis block. Therefore, any cryptographic credential from the old system also work with the new system.

If users still have their keywords, they will be able to regenerate their wallet. Knowing these words will allow the system to search the entire UTXO to find out which entries belong to a specific user. A balance check will look at the blockchain of the new system and scan the UTXO. This is performed locally on individual computers rather than on a server or a stake pool. Everyone will be able to do this on their machine once they have the testnet client because as they will have their own copy of the Cardano blockchain. This system will also bring more decentralization while offering a high level of security for the network.

The team plans to share more videos and article about how balance check works and how to rotate credentials during this week.

More details at https://www.cardano.org/en/home/