Today, we’ll look into some of the important updates that are coming to the Cardano network. So we’ll cover Hydra and what that is, and then we’ll see why this is important to Cardano. We’ll also explore some other updates that are coming to the Cardano network that are going to make some big impacts on the speed and improvement of the overall network.
To start off, let’s look deeper into Hydra layer-2. The developer behind the Cardano network, IOHK, came up with and announced their new solution for the network. Following the launch of smart contracts on the Cardano network, it has since been moving on to other projects with a purpose to make the network meet all the needs of its developers. So this is probably the reason why we’ve seen Cardano’s block size getting increased and other updates they’re doing to improve the overall performance of the network.
And Hydra is the latest release that brings all of these things into effect.
Hydra is a new layer 2 blockchain solution that’s built to run on top of the existing Layer 1 blockchain on Cardano. Hydra uses isomorphic state channels, which will allow it to use the same ledger representation over and over again. This is to ultimately provide uniform, off-chain ledger siblings. These are referred to as Heads by the developers. This basically puts things like NFTs, native assets, and Plutus scripting directly into the a Hydra Head, which ultimately acts as an extension of the current existing system.
Hydra is ultimately a solution to provide the much-needed scalability. This helps networks with high use rates to maintain the required throughput for applications built on the blockchain. And Cardano will have Hydra work side by side with its layer 1 solution to provide a smooth user experience.
As Cardano is focused on Decentralized Finance(DeFi), it is a necessity for the network to be able to provide suitable fee structures and security. And Hydra is their solution to make this progress as it will help to scale and bring down fees to a sustainable level.
This means that Hydra will help set fees to a point that won’t bother the users, while also preventing the fees from being low enough to encourage Denial of Service(DoS) attacks. Hydra will also help sort out the storage issues. The sotrage usually becomes a problem in case of growing transaction history.
Ultimately, Hydra is a layer 2 scalability solution that serves the purpose to maximize throughput, minimize latency, incur low to no costs, and greatly reduce storage requirements.
According to the initial estimates, the release of Hydra should be somewhere around late 2022. However, a Cardano software engineer, Sebastian Nagel, recently mentioned in his Twitter that steady progress was being made with the project moving closer to the testnet stage.
Taking this into account, it wouldn’t hurt to expect the release a little bit sooner than the estimates.
Another update is Cardax, a leading Decentralized Exchange(DEX), creating algorithm to solve concurrency on Cardano blockchain. Concurrency is basically the different parts or units of a program, algorithm, or a problem that executes out-of-order or in partial order without affecting the final result. This ultimately allows for parallel execution of the concurrent units, which leads to improved speed and efficiency of the dApp.
The final update we have today is of Cardano’s successful launch of testnet that beings Ethereum tokens to its ecosystem. So the ERC-20 and processing via the ERC-20 is now on the testnet. According to IOHK, the testnet converter transforms Ethereum’s ERC-20 tokens into native tokens on the Cardano blockchain.
So this will ultimately allow Ethereum smart contracts to be able to work with Cardano.
So that covers some of the latest news we have on Cardano Ada. Ultimately, we’re seeing this huge growth of use of the Cardano network. We’re seeing more and more people finding ways to be able to use this awesome scalable network.
We’re also going to be launching our own platform to make it easier for developers to deploy NFTs, smart contracts, and other things using the blockchain network. With a lot going on, we’re very excited about it and we’ll announce more details about our project next week.
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If you’d like to learn more about the recent Cardano updates, kindly check out the video below: