- Charles Hoskinson says that Cardano is built to exponentially grow its scalability and low-cost nature, offering users the best global financial OS.
- He pointed to Hydra and Leios as the network’s two key features for maintaining its efficiency, with the former allowing the network to bundle and process transactions offline.
Cardano offers the best platform to build the future global financial network, says Charles Hoskinson, the network’s founder and the CEO of Input Output Hong Kong (IOHK).
Hoskinson took to X to share his thoughts on the network he founded seven years ago. He was responding to a post on how Cardano can process a single block of eight transactions for 1,600 unique addresses for a total fee of 5.16 ADA or less than $2.5.
He noted:
And remember that this concept grows exponentially with rollups, hydra, and leios. That’s a global scale financial operating system
Hydra and Leios Make Cardano a Global Financial OS
Hydra is a layer 2 protocol on the main network that aims to increase its capacity to process transactions. It achieves this by opening multiple channels between the participants to conduct off-chain transactions. The participants can open several channels between themselves without broadcasting to the main network until the transactions are completed.
A major benefit of Hydra’s off-chain channels is that participants can make as many transactions as they wish between themselves without incurring the fees they would have for on-chain transactions. Once done, they then broadcast the transaction to the main network for confirmation and finality.
Bitcoin has a similar solution with the Lightning Network, where users conduct transactions off-chain and broadcast them to the main Bitcoin network for settlement once they are complete.
However, unlike the Lightning Network, Hydra allows participants to open multiple parallel channels in what’s known as multi-headed scaling without compromising the security or privacy of the transactions.
As Crypto News Flash reported, Cardano released the latest version of Hydra—Hydra v.0.16.0—last month. The new version supports cardano-node v.8.9.0 and the Conway block format.
The new version came just a month after rumours that the development team was abandoning Hydra, which Hoskinson quickly dismissed. ” I guess it’s that time of the cycle when everyone freaks out about Cardano’s potential and roadmap, so they throw a wave of FUD at us,” Hoskinson stated on X.
Ouroboros Leios, on the other hand, is a new variant of Ouroboros, the pioneering provably secure proof-of-stake protocol. It’s designed to increase the network’s throughput without sacrificing security. It leverages previously idle nodes, allowing them to make computations between blocks.
Cardano’s ambition to underpin the global financial system comes months after it was attacked as a zombie chain by Forbes, an accusation that sparked Hoskinson’s ire.
Meanwhile, ADA trades at $0.4998, gaining 8% in the past day and 15% for the week.
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