With the energetic work being executed via the builders on the Cardano (ADA) protocol, The long-awaited Hydra Protocol has now launched its Proof-of-Concept for implementation for fascinated participants.
While blockchain science is famend as the subsequent frontier in digital payments, its relative use can be limiting due to the fact of scalability.
-
The yet-to-be-launched Hydra Protocol will help Cardano achieve its scalability pursuits.
-
The protocol has launched its Proof-of-Concept (PoC) capabilities which has been tried by the Sundaeswap team.
 Cardano has introduced the new protocol as a way to achieve this much-needed scalability. While the Cardano blockchain is capable of producing a block every 20 seconds, the total number of transactions that can be recorded in a block is quite limited.
This limitation becomes a crucial challenge when multiple people try to use the protocol as the blockchain network’s adoption grows.
This necessitated the design of a new tool that can help circumvent the scalability challenges. Hydra is this response and it is designed to work in an offline environment, using the main Cardano blockchain as its core settlement layer.
While the most scalable blockchain protocols only permit a few thousand Transactions Per Second (TPS), achieving this rate in a sustainable way is hardly possible with current technology.
However, the projections for Hydra are that it can permit as many as 1 million Transactions per second, helping Cardano achieve its key goal of becoming the most scalable Layer-1 protocol around.
How the Hydra Protocol Works
The workability of the Hydra protocol is not open to everyone. To get to transact using Hydra, a group of users who conduct transactions regularly will need to come together to decide whether to open a Hydra Head.
If the decision to open a Hydra head is reached, the participants will need to transfer funds from the Cardano blockchain to Hydra. This transaction is done through an on-chain procedure.
Afterward, the funds are locked up in a script, and all of the participants get to ensure equal funding that is registered on the blockchain. After the initial lockup, all of the participants can then send funds to one another and this settlement happens offline.
This way, thousands of transactions can be conducted per time and several Hydra Heads can be opened per time.
This means that achieving the million TPS is possible, while the main transactions on the parent Cardano protocol will also be running smoothly.
The transactions on Hydra Head are backed through Plutus Scripts meaning we can get more than one transaction per time in different Hydra Heads.
Per its design, it is possible to close a Hydra Head, and the corresponding value of each participant’s funds is calculated such that no one will be cheated out.
The Sundaeswap team has run a PoC on the protocol, showcasing every of what has been presented as possible.
Powering giant scaled transactions
With new scalability measures in place, Cardano can revolutionize the broader ecosystem and be the gateway to powering microtransactions for broader e-commerce adoption.
Earlier News in Trend –
Hydra will hugely scale ADA to 1,000,000 tps
Cardano to scale up to 1,000,000 tps with Hydra for gorgeous quickly repayments – Project will foster adoption and growth
The Cardano blockchain network is getting closer to seeing the large-scale deployment of its layer two (L2) scaling solution Hydra for use in making super fast micro-payments.
Input Output Global (IOG), the core developers of Cardano, has released an update via a Twitter thread on its fully open-source peer-to-peer payments developer toolkit being developed in partnership with Obsidian Systems called Hydra for Payments.
Per the update, IOG is bringing Hydra Head to Hydra for Payments as the first protocol in a suite of Hydra protocols that aim to increase network scalability.
Hydra Head is an L2 solution that works as an off-chain mini ledger between a small group of participants. It is similar to the main on-chain ledger but faster, more cost-efficient, scalable, isomorphic, and customizable.
Hydra Heads are fast, scalable, isomorphic, and customizable. Hydra Head transactions and ledger rules are similar to Cardano’s mainnet, which allows easy support by existing systems like DApps and wallets,
The implementation of Hydra Heads in Hydra for Payments will essentially introduce new use cases for the toolkit including allowing developers to build features that will support bank-to-bank transfers, pay-per-use API services, NFT auctions, and light wallet micropayments among others.
According to previous updates, this is poised to bring massive growth and adoption to the Cardano ecosystem. This is because Hydra can theoretically scale up the Cardano blockchain to reach 1,000,000 transactions per second (TPS).
Can Cardano solve the scaling issue of blockchains? Hydra looks forward to 1,000,000 TPS
One of the major challenges for blockchain networks is addressing the scalability issues as thousands of new users join every day. The Cardano blockchain network is one such platform that actively working to address this matter.
The Cardano has been actively working on its Layer-2 scalability solution Hydra. The Hydra protocol will work atop the existing Layer 1 Cardano blockchain. The Hydra scalability solution seeks to address several concerns while ensuring an optimum fee structure acceptable to both – validators and users.
Thus, the Hydra protocol seeks to minimize latency, maximize throughput, incur low to no costs, as well as reduce storage requirements significantly. It seeks to achieve a throughput that will cater to applications in the real world. This includes identification, payment, gaming, or mobile services.
By leveraging the power of Hydra, Cardano-based decentralized exchange (DEX) SundaeSwap achieved a major milestone last weekend. It recently showed a small demo of very fast settlement by deploying SundaeSwap on the Cardano blockchain network. The announcement noted:
Today our team is excited to demo something we’ve been hard at work on for months: SundaeSwap on Hydra! While a ways out, this is an important milestone in not just our scaling journey, but Cardano’s as well.
This development will encourage a lot of decentralized exchanges to set up their platform on the Cardano blockchain in the future.
Cardano Hydra – Achieving one million TPS
If the blockchain platforms have to compete with legacy systems such as Visa and Mastercard they have to offer throughput to the scale of millions of transactions per second. With the Hydra protocol, the Cardano blockchain is taking up this challenge on its sleeves.
When it comes to scalability, one of the sole metrics of consideration is transactions per second (TPS). On the existing Cardano blockchain, the minimum latency is 20 seconds for adding one block. However, in Layer 2 protocols like the Hydra, it is possible to attain confirmation times of less than a second.
- Decentralized exchange SundaeSwap recently made a deployment on Hydra showing its ability to accomplish very fast settlements.
- Cardano’s Hydra is aiming for one million TPS with a latency period being less than one second.
The Cardano has been actively working on its Layer-2 scalability solution Hydra. The Hydra protocol will work atop the existing Layer 1 Cardano blockchain. The Hydra scalability solution seeks to address several concerns while ensuring an optimum fee structure acceptable to both – validators and users.
Thus, the Hydra protocol seeks to minimize latency, maximize throughput, incur low to no costs, as well as reduce storage requirements significantly. It seeks to achieve a throughput that will cater to applications in the real world. This includes identification, payment, gaming, or mobile services.
By leveraging the power of Hydra, Cardano-based decentralized exchange (DEX) SundaeSwap achieved a major milestone last weekend. It recently showed a small demo of very fast settlement by deploying SundaeSwap on the Cardano blockchain network. The announcement noted:
Today our team is excited to demo something we’ve been hard at work on for months: SundaeSwap on Hydra! While a ways out, this is an important milestone in not just our scaling journey, but Cardano’s as well.
Cardano believes that the Hydra protocol can help it achieve the aspirational target of one million transactions per second (TPS). “Throughput measured in TPS per Hydra head is secondary, and mostly limited by the available hardware. In principle, by adding increasing numbers of Hydra heads to the system, arbitrarily high throughput can be achieved by the system as a whole,” notes Cardano’s parent group, Input Output Global (IOG).
Cardano noted that they will continue to develop the Hydra-node and the Hydra Head protocol until it becomes a stable foundation for the community.
Cardano Hydra Solution Prepares for Mainnet Beta Release: Details
Cardano’s Layer 2 scalability solution, Hydra, might be nearing its mainnet beta release, according to IOG’s most recent weekly report.
As stated in the report, the Hydra team is presently working on Hydra-node mainnet compatibility. The team has also added a golden test suite for Hydra Plutus scripts and some detection of Hydra-node misconfiguration.
🚀 BASHO (SCALING): The #Hydra team worked on hydra-node mainnet compatibility and prepared for the mainnet beta release. The Mithril team implemented migration of aggregator stores, stake pool store adaptation, and refactored multi-signer to sign multiple concurrent messages. pic.twitter.com/5dDcknoQzm
— Input Output (@InputOutputHK) March 24, 2023
A mainnet limit of 100 ADA per commit (for the present) has also been established. The team also addressed smaller tasks in preparation for the mainnet beta release.
Cardano’s Layer 2 scalability solution, called Hydra, aims to boost transaction speed by providing low latency, high throughput and minimal transaction costs.
The Hydra family of protocols’ first member, Hydra Head, lays the groundwork for advanced deployment situations.
Decentralized applications (dApps), smart contracts and other applications may be built on top of Cardano thanks to the Alonzo upgrade.
Hydra, a key Layer 2 solution to further enhance Cardano’s scalability by layering a new protocol on top of the existing Layer 1 blockchain, is an intriguing innovation made possible by Alonzo.
Not only was progress made on Hydra, but the Mithril teams are also working on the final milestones to make the mainnet beta version of Mithril available, as earlier reported.
Recent IOG statistics show that 1,215 projects are currently building on Cardano, while 118 have already launched. A total of 63.5 million transactions have been made.
There are now 8.03 million Cardano native tokens spread across 70,937 minting policies. There were 7,489 Plutus scripts, of which 2,275 are Plutus v2 scripts.
Disclaimer – The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
