Shortly after announcing performance enhancements within its roadmap for 2022, Cardano is currently in the Basho phase. A phase where it refuses to define scalability in terms of ‘a million TPS.’ It stated in a recent blog post,
“Amongst all those available, TPS is probably the least meaningful metric to consider as a means of comparison.”
It further added that transactions come in different shapes and sizes, especially while comparing different platforms. Hence,
“Using TPS as a metric within the same context (for example, to compare two versions of the Cardano node) is meaningful. Using it as a means of comparison between blockchains isn’t.”
Therefore in this regard, IOHK, the company backing Cardano, stressed looking at throughput, finality, and concurrency as crucial metrics. While throughput is the volume of data processed within a specified period, finality is the time taken by the system to finalize a transaction. Additionally, IOHK defined concurrency as the amount of work that can be done by different actors without blocking each other.
With that being said, Basho is the scaling phase and network optimization phase for Cardano. Within which, Hydra is a crucial protocol for scaling. We know Hydra kick-started after Alonzo and since then, it has attracted attention as an ensemble of layer 2 solutions. As per IOHK chief Charles Hoskinson,
“It’ll be able to offload a large amount of the transaction traffic that’s going to come from all of the apps that are coming (soon). As PAB comes online, Cardano is going to get hammered by an enormous amount of traffic. Hydra is a necessity for that…”
And, Hydra Head, which is akin to an off-chain mini-ledger between participants, form part of this Cardano’s scalability journey. Having
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