Hydra Upgrade Launched on Cardano: Is 1M TPS Achievable?

Cardano's highly anticipated second-layer scaling solution, Hydra, has made its debut on the Cardano (ADA) mainnet, ushering in a new era for the blockchain platform. However, amidst the excitement surrounding Hydra's launch, there has been a discussion about the actual bandwidth and performance capabilities of the technology.

Matthias Benkort, the Technical Director of the Cardano Foundation, has addressed the narrative that Hydra is capable of processing one million transactions per second (TPS), clarifying that this claim is misleading. While Hydra has the potential to increase the network's transaction throughput, it is not currently capable of achieving a million TPS.

Benkort, also known as KtorZ, responded to Marco Meerman, an ADA staking pool operator and Cardano community enthusiast, who had suggested that Hydra's performance statistics were impressive but believed that a bandwidth of two million TPS should be the ultimate goal. Benkort emphasized that it is essential to rely on the performance statistics published by Input Output Global, the Cardano Foundation, or the Hydra team itself.

Despite Benkort's recommendation, some Cardano enthusiasts disagreed and argued that a two million TPS bandwidth should be the endgame goal for Hydra's progress. The Cardano community is known for its passion and engagement, and it will continue to drive the platform forward with differing opinions on Hydra's potential.

The launch of the first mainnet-compatible Hydra node marks a significant milestone for Cardano. Developer Sebastian Nagel confirmed the activation of the Hydra node version 0.10.0, following successful demonstrations of Hydra heads on the Cardano mainnet during review sessions. This development signifies Cardano's commitment to enhancing scalability and adaptability.

What is this Hydra upgrade on Cardano?

Hydra, developed by Input Output Global, the Cardano Foundation, and the Hydra team, is a family of layer 2 protocols designed to improve the scalability of the Cardano blockchain. It aims to facilitate faster and cheaper transactions, making the blockchain more adaptable for various use cases. The successful initiation of the first Hydra head on the mainnet demonstrated the protocol's readiness for real-world application.

The 0.10.0 version of the hydra-node includes significant technical changes and improvements necessary before Hydra heads can be used for real-world transactions. The developers have also updated the API to accommodate user requests, showing their commitment to user feedback and continuous improvement.

The growing preference for Cardano can be attributed to its cost-efficiency compared to Ethereum, especially considering the rising gas fees on the Ethereum network. While Ethereum fees have been skyrocketing due to increased network congestion caused by the memecoin hype, Cardano fees remain significantly lower. Although Cardano has a smaller user base than Ethereum, the fee surge on Ethereum highlights the advantage of Cardano's more cost-effective network, leading to a growing preference among investors.

Moreover, Cardano's daily active addresses have been increasing, indicating growing network activity. The social dominance metric for Cardano has also registered increased excitement, aligning with the surge in Ethereum gas fees. These factors contribute to the growing adoption and preference for Cardano.

Flagship Thought

The launch of the Hydra node on the Cardano mainnet is just one of the many developments on the platform. Cardano has already introduced a decentralized stablecoin called DJED and has plans for the fifth upgrade on its roadmap later this year. Additionally, the total value of assets locked in decentralized finance (DeFi) activities on the Cardano network has steadily risen, reaching $140.53 million.