Cardano down 10%! A godsend before the launch of a very important evolution!
On September 17, 2021, the developers of the Cardano network announced the release of a new solution called Hydra. Hydra is part of the “second layer” type solutions, increasingly used on Proof-Of-Stake protocols. We explain to you what the...
On September 17, 2021, the developers of the Cardano network announced the release of a new solution called Hydra. Hydra is part of the “second layer” type solutions, increasingly used on Proof-Of-Stake protocols. We explain to you what the Hydra solution is and how it should boost the scalability of Cardano as well as… its course!
What is Hydra 2nd Layer Solution?
The Hydra solution was in development for several months, it is now about to be launched. What is Hydra? To fully understand this evolution, it is necessary to know what a second layer solution.
Whether implemented on the Ethereum blockchain, Cardano, etc., these second layer solutions all have the same goal: lighten the traffic on the first layer, that is to say the blockchain. How does it happen ? To put it simply, this is a secondary network on which certain operations take place that are not directly managed by the blockchain. The blockchain simply takes care of integrating the inputs and outputs.
Take a example. Imagine that three users each have 10 Cardano or ADA, each stored on the blockchain (first layer). They wish to exchange Cardano coins with each other. To facilitate this transaction, they can switch to second layer. A Hydra “head” or “group” is then opened for their transaction. User A and B each buy 5 Cardano from user C. These operations are not controlled by the blockchain. Once the transactions are completed, the return to the blockchain can take place. The blockchain then checks that the 30 ADAs that have been released are coming back. However, the main blockchain did not “see” the change in the distribution of Cardano coins between users. Pretty smart, right?
Cardano price at 1.8 €, down 10% over the last 24 hours!
The big advantage of a second layer solution is that it will allowimprove scalability (number of Transactions Per Second or TPS) of the global network. Each Hydra head can handle up to 1000 TPS. With some optimizations to come, this figure may increase further. However, this therefore means that with 1,000 Hydra “heads”, the network can reach the famous 1,000,000 TPS mark!
Such scalability is considered the holy grail by cryptos managing a DeFi ecosystem like Ethereum, Cardano, Solana, etc. Indeed, with such scalability, these cryptos would be sufficiently armed to seriously compete with current centralized payment systems like Visa and its 2,000 TPS.
After recently launching smart contracts on its network, the Cardano is technologically armed to beat the competition in the field of scalability. The price of Cardano seems to have a bright future ahead of it! This is good, it is currently down 10%, hovering around 1.8 €. A boon ?
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