Cardano Founder: Hydra Is A High Priority As Traffic Is Expected To Spike
The creator of Cardano, Charles Hoskinson says that Hydra is a high commercial priority, as the scale of traffic is expected to rise in the coming months – especially, as projects in Africa begin to roll out.
Cardano has one of the leaders of growth when it comes to smart contracts capability. Ever since smart contracts debuted on the blockchain, high traffic has been anticipated for the network.
Smart contracts on Cardano had been in the works for quite a while and were one of the most anticipated upgrades in the space. Now that this is a reality, the developer has had to move on to building further capabilities to accommodate the anticipated traffic increase.
Hydra was built to make room for increased traffic on the network. A Layer 2 solution like Hydra provides the much-needed scalability to maintain high throughputs for the applications on the blockchain.
Hydra will also help to regulate fee rates on the blockchain. Thereby providing acceptable fee structures for the users. This makes it a very useful solution and Cardano founder Charles Hoskinson has reiterated the importance of the solution to the network.
Hoskinsin said that, at the moment, research is still ongoing with Hydra. But, generally speaking, things are converging to a version 1.0. Hydra is a layer 2 scaling solution that, in theory, could bring speeds of up to 1 million transactions per second (TPS).
Traffic on Cardano is expected to spike
Speaking from Ethiopia, Hoskinson hosted an AMA on the weekend. As usual, it was packed with a wide range of topics, including points on the ERC-20 converter and a brief mention of a possible deal in Eygpt.
But, of greater interest was talk about Cardano’s layer 2 solution, Hydra. Hoskinson said the IOHK team is currently busy working away on it. He also said that they are looking at bringing on board other parties to accelerate its development from a commercial perspective.
“A huge amount of work is going into it, and we’re going to keep adding resources to Hydra, and we’ve been trying to identify some teams so that we can accelerate parallelized workstream because it’s such a high commercial priority…”
All of which is a top priority as various projects in Africa come to fruition, with Hoskinson giving World Mobile as an example. World Mobile will bring on board almost two million new users, who will be relying on Cardano in an “always on” capacity.
“Especially with things to do with World Mobile and the telecommunications traffic that’s coming because it’s 1.8 million users, frequent use every single day, wallet on their phone, this type of stuff. So Hydra is a necessity for that.”
World Mobile is the first mobile network built on a blockchain. News of Cardano’s involvement with the firm first broke in late April at the Cardano Africa Special Event. IOHK said Tanzania would be the first country to benefit from the deal.
Progress On ERC-20 Converter
Hoskinson also updated the community on the anticipated launch of the ERC-20 Cardano converter. He confirmed that the Singularity net was currently in the process of migration. The converter is meant to target two main parts of the project – the Main Chain and Mamba.
With the arrival of Plutus, the network has been able to begin working on the main chain and has presumably made some progress in this regard. As for Mamba, a two-way bridge is being developed for it.
“The long-term goal is automation and bridging, so it’s easy to move between and wrap assets and so forth. We view it as a nice commercial tool. When people come and they want to migrate, there’s a process, a team, and a collection of competencies there.”
What is Hydra?
Alonzo launch on September 12 enabled smart contract functionality, but also laid the foundation for Hydra as well.
In building Hydra, developers, IOHK considered the problems of incentivizing network stakeholders, data storage, protecting against DDoS attacks while balancing all of that against “acceptable fees” for users.
“Hydra is a layer 2 scalability solution that seeks to address all these concerns and aims to maximize throughput, minimize latency, incurring low to no costs, and greatly reducing storage requirements.”
According to IOHK, Hydra will dramatically improve scalability, leading to greater adoption as Cardano attempts to become the definitive global blockchain solution.
Cardano (ADA) Price Analysis
Crypto analyst Benjamin Cowen predicted a realistic timeframe for when Cardano (ADA) can hit new all-time highs.He noted that Cardano has already pulled off nearly an 11,000% gain since the low of March 2020, and may need time to cool off before making any more rallies.
“It’s a pretty big gain by ADA, so I think it makes sense to consolidate for a while and wait until the ecosystem is actually being utilized. Until then, until that actually happens, I would speculate we’re more or less going to be in some consolidation phase. Could we get a breakout back to $2.50 or $2.25? Sure, I think that can always happen, but I’m not speculating dubiously myself on a new all-time high at least for another month or so… And it could be longer than that.”
The analyst also looked into a more bearish case where ADA falls through the “bull market support band,” which is a combination of the 20-week simple moving average (SMA), and the 21-week exponential moving average (EMA). Should Cardano collapse below the bull market support band, currently around $1.90, Cowen says that ADA would probably just enter a longer accumulation phase before going higher.
“Hopefully it breaks out to the upside if Bitcoin stays relatively bullish. So that would be the ideal case. Even if we do not hold the bull market support band, I still think it’s fine. I just think we would be in a long reaccumulation, and hopefully, we would still break out to the upside.”
