Hedera
Hedera token service
Hedera Token Service (HTS) manages fungible tokens and NFTs as native assets on Hedera. Its APIs handle standard token operations without requiring a deployed smart contract. Transactions must satisfy the applicable token and account permissions, carry the required signatures and pay network fees in HBAR.
How are native tokens identified?
The network assigns a permanent Token ID when a token is created. Names and symbols can be shared by different tokens, so the Token ID distinguishes the token or NFT collection. An individual NFT is identified by that Token ID together with its serial number. A matching name or ticker does not establish that two balances belong to the same token.
Fungible tokens represent interchangeable units within a shared supply. NFTs represent distinct items with individual metadata. HTS maintains these assets through native network operations, including creation, transfers and supply management.
What does minting change?
A successful mint increases the token’s total supply and credits the newly minted tokens to its treasury account. A fungible mint specifies an amount, while an NFT mint supplies metadata for each new item. Distributing those assets from the treasury is a separate transfer operation.
The supply-key requirements for minting apply to the particular token: it must have a configured, nonempty supply key and the mint transaction must satisfy that key’s signature requirement. The increase must also remain within the applicable supply limit. HBAR covers the network fee; the token’s supply key provides issuance authority.
What happens when an issuer mints tokens for a customer?
In this hypothetical setup for a fungible token, the customer’s receiving account is separate from the token treasury. Total supply before minting: 12,346 tokens; treasury balance before minting: 286 tokens; additional amount to mint: 176 tokens. Assume the required signatures are present, the payer can cover the fee and the increase is within the permitted supply limit.
If the mint succeeds, total supply becomes
12,346 + 176 = 12,522
tokens and the treasury holds
286 + 176 = 462
tokens. The mint has credited the treasury, so the customer has not received those tokens. Delivery requires a separate transfer that satisfies the applicable authorization and recipient requirements.
Changing the mint amount changes both total supply and the treasury credit by that amount. A later transfer reallocates existing tokens between accounts without increasing total supply.
Which controls govern token transfers?
Token configuration determines the administrative powers available for an asset and the keys that authorize them. Supported controls include supply management, KYC flags and freezing a particular account’s activity for a token. Their applicability depends on the token’s configuration; they are not universal settings shared by every HTS asset.
Association establishes an account’s relationship with a token so it can receive and hold it; dissociation removes that relationship. Transfers must satisfy the relevant association and permission requirements, including applicable KYC or freeze restrictions. An account’s balance and its permission to transfer a particular token therefore describe different parts of the token state.
How can several parties coordinate an exchange?
HTS supports atomic swaps and multi-signature coordination. Atomic execution keeps the included exchange together: its transfers take effect together when the transaction succeeds. The transaction must satisfy the authorizations required for the assets and accounts involved.
Scheduled transactions provide a way to coordinate the required signatures before execution. By default, the network attempts execution once sufficient signatures are collected. A schedule can instead wait for expiry, but missing required signatures at expiry prevent execution. Creating a schedule alone does not establish that the exchange has completed.
Where do smart contracts fit?
Native APIs cover token operations that the network already implements. EVM-compatible smart contracts add custom application logic and can interact with HTS assets. This lets an application combine native token management with rules implemented in Solidity.
Hedera’s Ethereum Virtual Machine (EVM) integration makes native fungible tokens accessible through ERC-20-compatible interfaces. The interface connects contract applications to a native asset identified by its Token ID. The token’s configured permissions still govern its native operations.
These capabilities support uses such as stablecoins, loyalty rewards and tokenized financial instruments. The application determines how its business rules use the token’s supply and permission controls.
How are HTS operations priced?
Native token operations use a published fee schedule with prices expressed in US dollars and converted to HBAR for payment. The operation and its parameters determine the charge, so token creation, transfers and supply changes do not necessarily have the same fee.
Smart contract execution also measures computational work in gas. An application that accesses native token functions through a contract must account for the contract execution and applicable native-service charges. A fee estimate therefore needs the intended operation and its parameters.