Hydra is Cardano's Layer 2 solution.
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- Layer 1The base blockchain protocol itself, where transactions are finalized and the consensus rules are enforced; Cardano is a Layer 1.View term
- HydraCardano's Layer 2 protocol built on state channels (Hydra Heads) for fast, low-cost transactions off the main chain. Production-ready since version 1.0 in October 2025.View term