Cardano Nears Max Capacity: What It Means for Investors

Cardano

Cardano, a decentralised blockchain platform, is getting close to reaching its capacity, which has industry experts debating whether it will be scalable in the future.

A well-known Cardano engineer named Sebastien Guillemot recently used Twitter to address issues and talk about potential fixes.

He emphasised that a sizable amount of Cardano’s 2021 scalability plan has already been implemented, and that more advancements are in the works.

Increased block sizes, encouraging additional decentralised apps (dApps) to switch to the Plutus V2 smart contract platform, and adopting tiered fees to establish a legitimate on-chain market are just a few of the measures Guillemot described in order to further grow the Cardano network. He also mentioned how traffic from Cardano’s Layer 1 (L1) network may be offloaded via sidechains, Layer 2 (L2) solutions, and a data availability (DA) layer.

In order to increase the network’s capacity, Guillemot also discussed the potential use of Input Endorsers and alternative smart contract platforms like Aiken.

He emphasised the significance of creating innovative approaches, such as unique UTXO (unspent transaction output) selection algorithms for dApps and wallets, which may result in substantial cost reductions. One such startup is Milkomeda, which has saved more than $10,000 by using a cutting-edge UTXO selection algorithm.

The Cardano ecosystem will probably keep luring programmers and consumers thanks to scalability improvements in the works.

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