In this installment, we will be looking at Cardano’s cost_model parameter.

Any sophisticated computing system needs precise rules to manage resource allocation. Think about it – processing power, storage, and time are all valuable resources. They must be doled out fairly, and in a way that allows the system to work for everyone.

Blockchain networks are no different. Consider these questions:

• What should happen when someone submits a smart contract that is written in a way that it could consume unlimited resources?
• How do you ensure the network remains stable while still allowing complex decentralized applications to flourish?

Here is an answer: One effective mechanism to control and manage resource allocation on a blockchain is transaction price.

These…