Shortly after announcing performance improvements within its 2022 roadmap, Cardano is currently in the Basho phase. A stage where it refuses to define scalability in terms of ‘a million TPS’. It stated in a recent blog post,

“Of all that available data, TPS is probably the least meaningful metric to consider as a comparator.”

It added that trades come in different shapes and sizes, especially when comparing different platforms. Hence,

“It makes sense to use TPS as a metric within the same context (for example, to compare two versions of the Cardano node). Using it as a means of comparison between blockchains is not that.”

That’s why IOHK, the company that supports Cardano, emphasized considering throughput, finality and concurrency as crucial metrics. While throughput is the amount of data processed within a certain period of time, finality is the time it takes for the system to complete a transaction. Moreover, IOHK defined concurrency as the amount of work that can be done by different actors without blocking each other.

Scales, Hydra & Performance

That said, Basho is the scaling and network optimization phase for Cardano. Within which Hydra is a crucial protocol for scaling up. We know that Hydra kick-started after Alonzo and has since garnered attention as an ensemble of tier 2 solutions. According to IOHK chief Charles Hoskinson,

“It will be able to offload much of the transaction traffic that will come from all the apps that are coming (soon). With PAB coming online, Cardano has to deal with a huge amount of traffic. Hydra is a necessity for that…”

And Hydra Head, which is akin to an off-chain mini-ledger between participants, is part of this Cardano’s scalability journey. That said, IOHK said,

“Hydra Heads excel at achieving almost instant finality within a Head.”

As of this week, the Hydra team announced that work on the first version of on-chain validators has been completed, along with the publication of the Hydra Head technical roadmap.

Meanwhile, as Cardano scales to avoid future congestion issues on its dApps, ADA wallets are also on the rise. Recently, the community has reached a milestone of three million in terms of active wallets. A sharp increase of almost 200,000 at the beginning of 2021.

Meanwhile, Kraken’s recent report also noted an increase in network activity due to recent upgrades.

When it comes to the native token, ADA, the coin is up 10% in the past week. At the time of writing, it hovers around $1.16, up about 8.7% from the past day. However, it is still down more than 60% from its all-time high in September 2021. But the platform has so far climbed a total TVL of $84 million on DeFillama.

This post If scalability isn’t about a ‘million TPS’ for Cardano, here’s what it’s aiming for

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