Hydra is a layer-2 scalability solution that enables developers to add specialized smart contracts to Cardano. The protocol is anticipated to increase transaction speed through low latency, high throughput, and reduced transaction costs. In addition, it will resolve the network’s security and scalability.
Hydra is a family of protocols and one of the essential aspects of Cardano’s layer two scalability journey during the Basho phase. The Hydra Head is the first protocol in this suite and provides the foundation to construct additional scalability.
Last week, Cardano developers held their monthly meeting to discuss the Hydra Head’s current status and demonstrate its mainnet-ready demo. During the presentation, they also revealed the protocol’s transition to version 0.9, which includes reduced costs and enhanced UX features for its “Hydra for Payments” utility.
Hydra for Payments is a new instrument that, once Hydra goes live, is anticipated to unleash the potential of micropayments within the Cardano ecosystem. Lead Hydra developer Sebastian Nagel stated that their objective was to make this payment feature as quickly as possible, surpassing the Lightning Network and other payment protocols in terms of speed.
“We want to extend the general-purpose infrastructure and a reference application that is mainnet and production-ready as quickly as feasible. Therefore, for us, it will be payment channels similar to a lightning wallet, with rapid send and receive,” Nagel said at the March 22 meetup.
“Within reason, a business can accept this sort of thing and entertain the concept of no fees. As a loss leader, they can also cover a portion of the L1 expenses associated with Hydra, so we are investigating all these options,” he added.
Previously, Charles Hoskinson, the founder of Cardano, stated that Hydra could also facilitate rapid completion, microtransactions, and micro gorging.
Although the mainnet launch date of the Hydra protocol remains unknown, its development has been greeted with high expectations, as its success is crucial to Cardano’s continued growth and adoption. Moreover, with its scalability solutions, such as those introduced by the Vasil Upgrade, ADA, the native coin of the Cardano network, is well-positioned to rise as more users and initiatives join the network.
ADA was trading at $0.3772 at press time, a 3.77% increase over the previous week. Notably, since reaching a low of $0.25 in December, the cryptocurrency has recovered over 55% year-to-date.
Read Also: BetFury Launches iGaming Event With $1M Prize Pool
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
- Advertisement -
Comments are closed.