Input Output Hong Kong (IOHK) announced the development of a Layer 2 scalability solution for the blockchain Cardano following the Alonzo implementation carried out a week ago.
Cardano founder Charles Hoskinson exposed through a live streamed on YouTube that they are developing a solution in Alonzo to improve scalability and storage aspects.
In this sense, IOHK, the developer of Cardano points out that the solution, called “Hydra”, could make transactions in the blockchain Cardano take less than a second to complete.
A Layer 2 scalability solution
David Orr, a member of the IOHK team, explained that while they plan to improve Cardano’s fees to balance user costs, probably not low enough for “real world use cases”. He further noted:
“Hydra is a Layer 2 scalability solution that seeks to address these concerns by providing more efficient means of processing off-chain transactions for a set of users while using the mainnet as a secure settlement layer.”
The IOHK team later added:
“Terms like ‘one million TPS (transactions per second)’ have been used before. It’s a bold number, and while it’s still 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. “
Following the implementation of Alonzo, IOHK highlighted that the network has a thriving NFT ecosystem, a roadmap for future governance through Voltaire and maximum scalability through Basho and Hydra.
Alonzo and ADA price update
Last Sunday, September 12 smart capabilities were officially enabled contracts of Plutus in the mainneCardano’s t after the implementation of the Alonzo update.
Thus, Cardano is now enabled to accept smart contracts, one of the most anticipated requirements by the community, as reported by BeInCrypto.
Despite Alonzo’s high expectations, Cardano’s native token has not reacted in the same way.
At press time, ADA is trading at $ 2.36 which represents a drop of 1.31% in the last 24 hours and of almost 10% in the last 7 days, according to data from CoinMarketCap.
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