IOHK, the developer behind the Cardano network, has announced a new solution for the network. Following the launch of smart agreements on the network, it has actually carried on to other jobs to make certain that the network fulfills all of the requirements of its designers. This has shone through in the latest release from the developer, called Hydra.
The Cardano tough fork gave the leading edge the possibilities for more advancement. Even as developers outside of the main Cardano project develop their own solutions and protocols that run on the network, IOHK is continuing its work in making the network more scalable and safe for its users. This is why the release of the Hydra Layer 2 solution is necessary to the community.
Layering Hydra On Top Of Existing Layer 1 Blockchain
Hydra is a Layer 2 blockchain solution built to run on top of the existing Layer 1 blockchain on Cardano. Hydra utilizes isomorphic state channels which essentially will utilize the very same ledger representation over and over once again to supply consistent, off-chain ledger brother or sisters. These are referred to as Heads by the developers. This puts things like NFTs, native properties, and Plutus scripting straight into a Hydra Head, which acts essentially as an extension of the present existing system.
This Layer 2 solution will provide the much-needed scalability that is required for networks with high use rates to maintain the required throughput for applications built on the blockchain. Hydra will work side by side with Cardano’s existing Layer 1 solution to supply a smooth user experience.
Why Hydra Is Important For Cardano
As things like decentralized finance (DeFi) make their way into the Cardano ecosystem, it is imperative for the network to provide suitable fee structures and security on the blockchain. This is where Hydra is available in. The Layer 2 protocol will not only help to scale the network but will also help to bring down fees to a sustainable level. This is available in the type of setting a cost structure that is both appropriate for the stake swimming pool operator community, considered that Cardano operates on proof-of-stake and charges that users consider appropriate.
Hydra will help to set these fees to a low enough point that it is not a problem for its users, while also preventing the fees from being low enough to encourage Denial of Service (DoS) attacks.
Also, as the deal history grows on the Cardano network, storage will end up being an issue in time. A Layer 2 solution like Hydra will mitigate against these problems in the future.
“Hydra is a layer 2 scalability solution that seeks to address all these concerns and aims to maximize throughput, minimize latency, incurring low to no costs, and greatly reducing storage requirements.”
More information on Hydra will be available at the Cardano Summit scheduled to happen on the 25th-26th of September 2021.
