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November 2, 2021

Hydra Scalability Solution for Cardano Is High Commercial Priority, Says Founder Charles Hoskinson

By Daily Hodl Staff

Cardano (ADA) and Input Output Hong Kong (IOHK) founder Charles Hoskinson says Hydra, Cardano’s scalability solution, is “going very well.”

The chief executive of the Cardano developer tells his 287,000 YouTube subscribers in a new ask-me-anything session that the company has devoted a “huge amount” of work to Hydra and plans to keep adding resources to the venture in the future.

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“We’ve been trying to identify some teams so we can accelerate and parallelize the workstream, because it’s such a high commercial priority, and it’s going to be very important that we’d be able to offload a large amount of the transaction traffic that’s going to come from all of the apps that are coming.”

David Orr of IOHK said in September that while they plan to improve ADA fees in order to balance user costs, stake pool operator rewards and network security, they likely won’t be low enough for “real-world use cases,” which is what Hydra intends to address.

“Hydra is a layer-2 scalability solution that seeks to address these concerns by providing more efficient means of processing transaction off-chain for a set of users while using the main chain as a secure settlement layer… 

Hydra maximizes throughput, minimizes latency, incurring low-to-no cost, and greatly reduces storage requirements.”

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Hoskinson also provides an update on IOHK’s development of a converter that enables the exchange of supported Ethereum tokens (ERC-20) to special Cardano-based coins.

[The] ERC-20 converter has two targets. One is the main chain. Now that Plutus is here, we can actually do a lot of cool stuff with that. The other is going to be Mamba. So the ERC-20 converter team is going to be shaken up and augmented a little bit. We’re going to add more resources to it, and we’re going to have a really nice two-way bridge tool for Mamba, because you’re going from ERC-20 to ERC-20, Solidity to Solidity. So it’s much easier to do that.”

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Featured Image: Shuttersock/Sergey Nivens