Key Insights into Intent-Based Transactions
- •Charles Hoskinson, CEO of Input Output Global, stated that intents represent the next evolution in cryptocurrency, where users declare desired outcomes, and automation handles execution across various chains and protocols.
- •Cardano's extended-UTxO ledger and Plutus validators enable deterministic transaction simulation prior to submission, which is crucial for supporting intent-centric user flows.
- •Three primitives introduced during the Vasil era—CIP-31 (reference inputs), CIP-32 (inline datums), and CIP-33 (reference scripts)—are designed to reduce friction in the fulfillment of intents.
Understanding Intent-Based Finance
Charles Hoskinson described intent-based transactions as the next frontier in cryptocurrency during a recent interview. He illustrated this concept using an example of purchasing coffee at a Berlin airport. The user paid in dollars, but the transaction involved currency conversion from dollars to euros, routing through credit card networks, and finally settling with the merchant's bank. This complex process, involving approximately 40 steps, was simplified for the user who only needed to declare their intent: to buy coffee at a specific price using a particular payment method. Automation managed all the underlying conversions, routing, and settlement. Hoskinson emphasized that this mirrors how finance, markets, and commerce operate in the real world and that intents represent the next significant development in cryptocurrency, with Cardano possessing inherent advantages for this model.
Cardano’s Technical Framework for Intents
Cardano's extended-UTxO ledger and Plutus validators provide deterministic outcomes and fees for transactions before they are submitted. This allows a front-end application to express a user's desired outcome, construct a constrained, unsigned transaction locally, and accurately predict the results once a solver or batcher submits it. This predictability is fundamental for intent flows, where users specify their goals, and automation handles the execution.
The Vasil-era primitives significantly enhance the user experience for intents. Reference inputs (CIP-31) allow solvers to access on-chain state without consuming it. Inline datums (CIP-32) enable the intent itself to be stored directly as data on a UTxO. Reference scripts (CIP-33) permit multiple intents to utilize a pre-deployed validator, thereby avoiding redundant code deployments and associated costs. Collectively, these features streamline and reduce the expenses involved in automated fulfillment processes.
The standard dApp-wallet bridge (CIP-30) facilitates the collection and signing of intents. A web application constructs the transaction, requests the user's wallet to sign it via an injected API, receives the witness set, and then submits it. The Plutus Application Backend and common SDKs are responsible for managing the off-chain orchestration.
Batchers as Intent Solvers
Cardano Decentralized Exchanges (DEXes) currently employ batcher systems that effectively demonstrate the intent pattern in a live production environment. Users can post swap or liquidity-provider UTxOs with specific constraints, such as price limits, minimum output amounts, and deadlines. An off-chain batcher then aggregates these requests and settles them into a single on-chain transaction. This process functions as a solver that fulfills user intents. Minswap has explicitly documented this mechanism in its technical documentation.
The ledger's features inherently support intent automation. Validity intervals and time-to-live parameters provide explicit time windows, informing automation systems when an order has expired. Collateral outputs (CIP-40) mitigate the risk of failed scripts without jeopardizing user funds beyond the defined collateral rules, which is essential for secure automated submissions.
Hydra Heads replicate layer-1 semantics in off-chain environments through isomorphic state channels. The same Plutus logic can be executed within a Hydra head and subsequently settled back to layer-1. This capability is particularly beneficial for solver-style matching engines that demand lower latency. Furthermore, NEAR's Intents platform has integrated ADA support, illustrating how solver layers can manage cross-chain routing and gas fees while users simply declare their desired outcomes.
Divergent Approaches Across Blockchain Ecosystems
Various blockchain ecosystems are adopting distinct strategies for implementing intent-based transactions. On Ethereum, platforms like UniswapX and CoW Protocol focus on off-chain signed orders that are settled through solver competitions and batch auctions, specifically designed to mitigate Miner Extractable Value (MEV). The ERC-4337 and ERC-7702 standards enhance the user experience with smart accounts and gas abstraction, features commonly utilized by many intent front-ends.
NEAR has introduced intents as a native transaction type, intrinsically linked to Chain Signatures and chain abstraction, where solver networks directly fulfill cross-chain objectives. This approach positions intents as fundamental protocol features, contrasting with Cardano's implementation at the application level.
The Cosmos ecosystem has converged around order-flow auctions and cross-chain intent standards, such as ERC-7683. Projects like Skip and Interchain are developing solver-driven routing solutions between different zones. Solana, on the other hand, emphasizes interface-native Actions and Blinks, which allow users to compose and submit transactions via their wallets by clicking a URL. Price discovery is managed through RFQ (Request for Quote) and aggregator systems.
Cardano's proposed approach distinguishes itself through its deterministic extended-UTxO model, the specific Vasil features, and the isomorphism of Hydra. These elements naturally lend themselves to encoding intents as UTxO data, with off-chain batchers providing predictable settlement.
Near-Term Price Outlook for Cardano
While intents may not offer immediate solutions for short-term market success, they significantly contribute to an asset's narrative and can positively influence its price action. Analyst Ali Martinez noted on October 29 that Cardano could potentially reach $1.70 if it managed to break above the $0.80 mark. His accompanying chart depicted a symmetrical triangle pattern, indicating price consolidation between converging trendlines since early 2025.
The Sniper Club published an analysis on October 29 identifying support zones for ADA on the daily chart. According to their assessment, Cardano's price has been consolidating within a support area ranging from $0.58 to $0.67. The analysis suggested entry opportunities within this range, with initial price targets set between $0.74 and $0.85, representing potential gains of 28% to 47%. Second targets were projected from $0.94 to $1.14, indicating possible gains of 62% to 97%. The analysis recommended placing a stop loss below $0.52.
Supported by a long-term perspective on these developments, short-term price action may align with the predictions made by these analysts.