• New off-chain Cardano scalability solution can theoretically handle 1 million transactions per second

Cardano has launched Ouroboros Hydra, which is an off-chain scalability protocol that has been in development for 5 years. This protocol drastically increases scalability and transaction speed while simultaneously using very little on-chain or node storage.

Each user who connects to Ouroboros Hydra generates 10 throughput lanes for data and transactions, so the network gets faster and more scalable with increasing users. If just 100 people join the network, which creates 1,000 throughput lanes, the protocol will be able to handle 1 million transactions per second, which is a far greater capacity than the biggest fiat payment networks like MasterCard and Visa.

Ultimately, the only limiting factor is the network connection between participants, and not the protocol itself.

Overall, this is perhaps one of the first examples of blockchain technology exceeding the capabilities of major payment networks like Visa, and it could be a sign that blockchain technology will one day underpin the entire global financial system.

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