By Kenny - Crypto Professional - 02-11-2021
The Cardano (ADA) community is known for being made up of some of the most fortified fans in the industry of investing in cryptocurrency. The community is full of members who are excited to buy Cardano ADA - one of the top 10 ranked cryptos - and invest in the company's progress and initiatives.
As usual, the CEO and Co-Founder of Cardano and IOHK, Charles Hoskinson, provides another company and progression update to the Cardano Community. In the latest update, Hoskinson spoke about the behind-the-scenes efforts of Hydra. Hydra is a layer-2 scaling solution on Cardano's Proof of Stake (PoS) first layer. Hydra works well with staking pools and tools as it works as an open-source, permissionless blockchain that helps companies with on-chain predictions. There are some concerns within the Cardano network that Hoskinson hopes Hydra can provide solutions to fix. The update came in a blog post by IOHK on September 17, as it stated that the company hopes Hydra can solve the need to create a safe and trustless environment for transactions.
However, just like any permissionless blockchain network like Cardano, some drawbacks exist. One example of the hindrances that a permissionless blockchain has is when needing to serve real-world applications, like payments, games, identity etc; Hoskinson has explained that there have been issues. Users need to buy ADA in order to pay the transaction fees. The fees are there to serve as compensation and reward stake pool contributors and are set at a level that suits best. Of course, users of the platform would want to pay fair fees.
Furthermore, the blockchain must be safeguarded against assaults to the network such as Denial-of-Service (DoS). So in order to protect the network from DoS attackers, fees cannot be priced so low that the company risks the system to be vulnerable to risks. That being said, Hoskinson has stated that Hydra is doing well to help solve a lot of the present issues the company faces and looks forward to its progression.