Cardano layer-2 solution, Hydra to improve scalability among other things

Ever since the Alonzo hard fork took place on the Cardano network earlier this month, its developers have been on their toes to maximize its smart contract functionality. While its commercial arm EMURGO had announced the development of a DeFi platform on Cardano last week, its development team Input Output HK (IOHK) has now revealed the development of a layer-2 scaling solution for the network called Hydra.

An IOHK blog post noted that,

“Among the most exciting of the fresh developments enabled by Alonzo is Hydra, a key layer 2 solution to further improve Cardano’s scalability layering a new protocol on top of the existing layer 1 blockchain.”

It did however mention that the Ouroboros proof-of-stake layer or the main chain will be where transactions settle but are processed off-chain, hence retaining the security guarantee.

The solution aims to tackle to issue of scalability and storage, both of which might spell trouble for the network now that smart contracts and other applications can be built on top of it. This has been a recurring issue with smart contract premiere Ethereum, which often faces surging gas fees and network congestion.

The post further explained that while IOHK planned to improve Cardano’s fees in order to stabilize user costs, stake pool operator rewards, and network security, they might still not be low enough for “real-world use cases,” which is why the need for Hydra arises.

It could also make transactions on the Cardano blockchain take less than a second to complete, according to the developers. The blog post did however mention,

“Terms like ‘one million TPS (transactions per second)’ have been used before. It is a bold number, and while it remains an aspirational goal, the ultimate goal of any system is the flexibility to increase capacity with demand […] In principle, by adding an increasing number of Hydra heads to the system, arbitrarily high performance can be achieved by the system as a whole.”

There has been much buzz around these upgrades being implemented on Cardano, as developers hoped to find an alternative to Ethereum’s high fee. However, many also hoped for its native currency, ADA, to reach newer highs upon implementation as it did in the days leading up to it. At press time, however, it had lost over 10% of its valuation in the last 24 hours, and a total of 17.8% in the past week.

--

--

--

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

Recommended from Medium

Mirror Community Update — March

Being “the CEO of now-defunct MtGox”

Brief History of Mining — And Why It’s Pylon’s Edge

North Korea Auction Winner Announcement

If Bitcoin Becomes The Worlds Pristine Collateral

XRP will be listed on NASDAQ, and it is expected to increase more than 10%

FTX United States Head of state clarifies exactly how crypto can assist cannabis organizations

M-Day 27th Session -Ares Protocol (ARES) is Launching

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
jamilapatersonofficial

jamilapatersonofficial

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

More from Medium

Cardano achieves new milestone as total transaction count crosses 30 million mark

Cardano and Polkadot ETPs are now available on the Frankfurt Stock Exchange

Cardano and Polkadot ETPs are now available on the Frankfurt Stock Exchange

Cardano #1 in chain activity 3 days in a row!

Cardano (ADA) Investment Memo