Considerations regarding the scalability of Cardano (ADA): the words of Justin Bons
Cyber Capital’s founder and CIO, Justin Bons, recently shared his perspective on the scalability of Cardano (ADA) and proposed an alternative to Layer-2 (L2) as a solution to improve productivity.
Instead of relying on Layer-2 mechanisms such as Hydra and other sidechains, Bons suggests that the Cardano (ADA) and Avalanche (AVAX) blockchains should focus on enhancing their Layer-1s.
Bons’ recommendation was made during a personal address on 18 September 2023. He also commented on Cardano’s Input Endorsers, a mechanism aimed at creating a new protocol to approve transactions before officially including them in new blocks.
This methodology is reminiscent of the “pre-consensus” approach used by Avalanche (AVAX) for scalability. However, both Cardano and Avalanche implementations have throughput limitations in the preliminary addition of transactions to blocks.
Exceeding a bandwidth of 1,000-2,000 transactions per second (TPS) would be difficult with such methods, which leads Bons to argue that Cardano (ADA) should avoid focusing on Hydra and other sidechains to solve scalability challenges.
Recall that Cardano’s L2 solution, Hydra, was launched on the core network in May 2023, and a major inaugural upgrade was delivered just a month ago.
In addition, in this same month, the developer community and Cardano enthusiasts (ADA) initiated explorations on zero-knowledge proofs (ZKP) as a potential solution to boost performance and strengthen network security.
Hence, the dedicated team at ZK-Labs has initiated a new scalability project that could eventually take Hydra’s place.
Ripple has recently been making significant transfers of XRP, while the price of the crypto is seeing an increase.
Whale Alert recently published information indicating that, in the past 14 hours, San Francisco-based Ripple Labs has deposited nearly 80 million XRP into a wallet identified as “unknown” by the cryptocurrency tracker.
In a separate transaction identified by Whale Alert, 30 million XRP was transferred from an anonymous address to the Bitstamp exchange.
Further details provided by the XRP-focused analytics platform, Bithomp, reveal that this transaction was also initiated from a wallet associated with Ripple, suggesting that the blockchain behemoth is sending a considerable amount of cryptocurrency, amounting to 30 million XRP, to be sold on Bitstamp.
The total sum of these two transfers, together with the 75 million XRP mentioned earlier, amounts to 105 million XRP, with a value of about $52.8 million in fiat equivalent.
Of the 75 million XRP initially transferred by Ripple, 46 million XRP were later sent to an anonymous address, suggesting the possibility of an OTC transaction or redistribution of funds carried out by the blockchain company.
Also over the previous weekend, Ripple received a notable transfer of 100 million XRP from an unknown address, which was later identified as belonging to the Canadian cryptocurrency exchange SideShift.
The reasons for this transfer remain unknown. However, in the past, Bithomp has observed similar transfers from giants such as Binance to Ripple wallets. At this time, none of the parties involved have made official comments regarding these fund movements.
Focus on TON’s performance: how it compares to crypto assets Cardano and Ripple
Over the past month, the price of crypto TON has seen a significant 87% increase, mainly attributed to a new development by the TON Foundation: the integration of the TON coin into the social messaging app Telegram.
It is crucial to note that despite these developments, the TON project has not yet established an official link with the Telegram company. However, not surprisingly, the integration announcement has also influenced the number of TON holders actively using the Ethereum network.
Not surprisingly, according to statistics provided by blockchain analytics platform IntoTheBlock, the number of active TON addresses has increased considerably, exceeding 300 active addresses for the first time since December.
Although TON is an independent blockchain, its counterpart TON Coin on Ethereum exists as a packaged asset, which allows for transfer between different wallets and trading on decentralized exchanges (DEX).
In fact, following the news regarding the integration with Telegram, DEX such as Uniswap and PancakeSwap have seen a significant increase in trading volume related to TON.
In addition, last week, the TON Foundation announced ambitious plans for close blockchain integration with the social messaging app Telegram, which boasts 800 million monthly active users.
Among these plans, the TON Foundation unveiled the idea of launching TON Space, a self-custodial wallet directly integrated into the Telegram app.
This wallet will allow users to access and manage all of their digital assets within the social media app’s environment, including the ability to interact with so-called mini apps.
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