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Monthly Cardano Scaling Report

Since November 2022, the Hydra project has made notable progress. The team completed the validation of the coordinated head protocol against a formal model and detailed a follow-up task on model-based testing. They focused on closing gaps in the specification to support an audit, scoped down version 0.9.0 to script updates, and moved the "Commit from external wallet" feature to the next version. Development highlights include fixing errors in the internal wallet, reducing commit costs using reference scripts, and improving CI with nix-based builds. The Hydra V1 specification is being formalized in LaTeX, and the community projects "Hydra for Payments" and "Hydra for Voting" have advanced, with the former completing its first phase. The Cardano Foundation also published a retrospective blog post on Hydra's progress in 2022.

Hydra Head Protocol: An Open Source Solution For Scalability

Cardano Foundation
Not-for-profit organization
Input Output Global
Research and engineering company

The Hydra Head Protocol, is a layer-2 scalability solution for Cardano, enabling the creation of off-chain ledgers for more efficient blockchain use. Developed as a joint effort by the Cardano Foundation and IOG, Hydra facilitates fast, private transactions within small networks (Hydra Heads) that later settle results on the Cardano mainchain. It's designed to be isomorphic, meaning transactions within Hydra Heads have the same capabilities as those on Cardano, but without the need for stake pools, ensuring full consensus among participants. Hydra aims to improve Cardano's scalability and efficiency, supporting a variety of use cases like payments, games, and marketplaces, with a focus on adoption and integration by developers.

Hydra Head Protocol

Monthly Cardano Scaling Report

Since October 2022, the Hydra team released versions 0.8.0 and 0.8.1, introducing persistence and improving user experience. The roadmap now focuses on finalizing the Hydra V1 specification and preparing for an audit. Key projects include Hydra for Payments and Hydra for Voting, with progress in formal verification and product demonstrations. The team rebranded the repository to reflect its maturity and held a workshop to set new goals for 2023.

Interview: ADAO

For the September Spotlight Article, we interviewed people from ADAO. Their mission is to build open-source tools, educational and supportive resources to empower robust, decentralized systems of collaboration and governance, starting with Cardano

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