IOHK Releases Ouroboros Hydra Protocol to Improve Micropayments on Cardano Network
The IOHK blockchain technology company led by Charles Hoskinson, the Ethereum co-founder, has announced on March 25 the Ouroboros Hydra, its second-layer Cardano blockchain scalability solution.
The Hydra protocol is going to improve the scalability of Cardano, which means it’s going to perform more transactions at lower fees, making it easier for the blockchain applications to operate and encouraging the use of the network. Here’s what the director of Edinburgh University’s Blockchain Laboratory, Aggelos Kiayias, explained what solving scalability could mean:
“Solving the scalability question is the holy grail for the whole blockchain space. The time has come to apply a principled, evidence-based approach in designing and engineering blockchain scalability solutions and this research is a decisive step in this direction.”
Hydra Will Improve Cardano’s Functionality
As a second layer blockchain scalability protocol, Hydra will be on top of other Cardano main protocols and improve the network’s functionality. Its name, Ouroboros Hydra, comes from Greek mythology and has a meaningful resonance because the system’s protocol has each user of the network generating 10 additional heads. Each of these heads will bring a new throughput lane for transactions and data, this way making the blockchain faster with scales. Here’s what Charles Hoskinson had to say about the new protocol:
“Once implemented, it [Ouroboros Hydra] will allow the Cardano blockchain platform to scale to process more transactions than any other blockchain or traditional payment system.”
1,000 Transactions per Second on Each Head
The simulations conducted by the University of Edinburgh revealed that there can be 1,000 transactions per second on each head, which means 1,000 heads can scale 1 million transactions per second. In the last few years, the Hydra project received funds from the EU’s Privilege Project, as it has united researchers in distributed ledger technologies cryptography from all over Europe.
Cardano’s ADA Price to Remain the Same
Cardano’s ADA didn’t meet any change in its price as a result of this news being released. It’s still on the 15th position according to market capitalization, at 1.81% on the day and trading for about $0.029, CoinMarketCap says. Until now, blockchains have struggled to scale and at the same time to not compromise centralization, but it seems Cardano comes to change the game completely.