Cardano blockchain releases new scalability protocol, Ouroboros Hydra

The off-chain scalability solution claims that it can scale more than Visa’s payment network

Faisal Khan
Mar 26 · 3 min read

Cardano began as a project back in 2015 focused on incorporating innovations that would give way to a more balanced and sustainable blockchain ecosystem and improving on the weaknesses of its predecessors. It deviated from the standardized approach by not having a roadmap or even an authoritative white paper in the beginning. Rather it decided to start off with design principles & engineering best practices that would evolve over time.

Five years in the making, Cardano blockchain(ADA) — now №16 on the list of top crypto projects by market cap, has finally released its off-chain scalability protocol Ouroboros Hydra. As claimed in the announcement, the innovation offers vastly superior scalability and low latency while employing very little storage on the ADA’s network.

Use cases include facilitating micropayments, voting, insurance contracts and other application which requires a low fee and instant transactions. According to the parent company of the Cardano network, IOHK, work on Ouroboros Hydra had been funded by the EU’s collaborative research project PRIViLEDGE — whose aim is to develop private, anonymous and efficient decentralized solutions for distributed ledgers technologies (DLT).

With the research carried out by the University of Edinburgh, Hydra Scalability solution can theoretically process one million transactions per second (TPS), which is far better than the 24,000 TPS being processed by the Credit card payment giant VISA.

According to the Hydra solution, every user connecting to the network generates 10 heads. These heads basically act as lanes for data transfer and transactions. This feature also gives the network the ability to decrease its latency as it scales up.

Simulations conducted at the University of Edinburgh proved that each of these heads can perform 1,000 TPS which can go up to one million TPS with the capacity of generating ten additional heads by each user. The team is hopeful of further optimizing this solution.

This is not the first time we have heard of innovative scalable solutions being implemented by different blockchain projects, but none so far has come close to the operating capacity of the systems in the legacy financial system. This lofty claim by Cardano would only excite the users, once this can be proved in a live environment.

But good to know that developers continue to work on solving the impending scalability problem. The price of ADA was hovering around $0.03 at the time of writing.

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Faisal Khan

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Content Specialist in Cryptocurrencies | Blockchain | Financial Markets | Technology | Future | Science | Space


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