Cardano introduced the Hydra protocol last year and has been developing it ever since. The project has made strides in establishing itself as a force to be reckoned with in the field, finally achieving smart contract capability in 2021. Its field of decentralised finance (DeFi) is gaining traction.
In a recent article on its official website, IOG, Cardano’s creator, has provided new data about the project. He discusses the protocol’s present state. Hydra, developed by the Ouroboros team, continues to expand in order to increase throughput, minimize latency, and provide cost-effective solutions without losing storage resources. Hydra has evolved into a proof-of-concept protocol, which was not intended. As a result, the team is focusing on “a more particular implementation of the testate MVP.”
There are several Hydra Heads, which provide a powerful network layer between Cardano and other blockchains, as well as extra smart contracts that will drive the lifetime of a Hydra Head. It works as a mini-ledger, similar to the Cardano network’s on-chain main ledger, but on a smaller scale.
The consensus technique used by this protocol requires all parties involved in a transaction to agree before the transaction can progress. This guarantees that protocol users have a very high degree of security.
