IOHK, the developer behind Cardano Network, owns announce A new network solution. After launching smart contracts on the network, I moved on to other projects to ensure that the network met all the needs of its developers. This has starred in the latest release from the developer named Hydra.
The Cardano hard fork brought to the fore the possibilities for further development. Even as developers outside the main Cardano project develop their own solutions and protocols that run on the network, IOHK continues its work on making the network more scalable and secure for its users. This is why the release of the Hydra Layer 2 solution is so important to the ecosystem.
Putting Hydra on top of the current Layer 1 Blockchain
Hydra is a Layer 2 blockchain solution designed to run on top of the Layer 1 blockchain found on Cardano. Hydra uses Similar status channels which will essentially use the same ledger representation over and over to provide off-chain non-uniform ledger siblings. These headers are referred to by the developers. This puts things like NFTs, native assets, and Plutus scripts directly into the Hydra Head, which basically acts as an extension of the existing existing system.
This Layer 2 solution will provide much-needed and much-needed scalability for networks with high usage rates to maintain the required throughput of blockchain-based applications. Hydra will work in conjunction with Cardano’s existing Layer 1 solution to provide a seamless user experience.
Why is Hydra important to Cardano
As things like Decentralized Finance (DeFi) make their way into the Cardano ecosystem, it is imperative that the network provides the appropriate fee and security structures on the blockchain. This is where Hydra comes in. The Layer 2 protocol will not only help expand the network, but will also help reduce fees to a sustainable level. This comes in the form of putting in place a fee structure that is acceptable to the stock pool operator community, since Cardano works on proof of stake and fees that users consider acceptable.
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Hydra will help set these fees to a point low enough that it is not a problem for its users, while preventing the fees from being low enough to encourage Denial of Service (DoS) attacks.
Also, as the transaction history on the Cardano network grows, storage will become an issue over time. A second layer solution like Hydra will alleviate these problems in the future.
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“Hydra is a scalable Layer 2 solution that seeks to address all of these concerns and aims to maximize throughput, reduce latency, incur low or no costs, and dramatically reduce storage requirements.”
More information about Hydra will be available at Cardano Summit It is scheduled to take place from 25 to 26 September 2021.
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