Hydra
What is Hydra?
Hydra is a Cardano L2 solution. Like many other L2 solutions aiming to solve the "blockchain trilemma," Hydra was developed to enhance the performance of Cardano L1.
Hydra is an off-chain type of L2, where most processes are conducted off-chain, and the final results are securely reflected on L1.
High-Speed Transaction Processing
One of Hydra's standout features is its millisecond-order transaction processing capability. Since Hydra does not have "block generation waiting time," transactions are processed instantly.
Additionally, factors such as the physical distance between Cardano nodes operating worldwide, network congestion, and transaction surges can significantly impact transaction speeds on L1. In contrast, Hydra processes transactions within a small, closed network called a Hydra Head, consisting of a few nodes, making it easier to achieve a stable network environment compared to L1.
Use Cases Suitable for Hydra
Key Features of Hydra
To summarize Hydra's features:
- Hydra enables high-speed L2 transactions.
- L1 transactions occur during the start and end of a Hydra Head, reflecting results on L1.
- These L1 transactions are not as fast as Hydra's L2 transactions.
- Hydra's L2 transaction fees can be set from 0 to any desired amount.
These features make Hydra particularly suitable for microtransactions (micropayments) that involve small amounts and occur frequently over a short period.
Auction Systems
This use case is introduced in the Hydra official documentation.
Auction systems, where intense bidding is a key attraction, are highly compatible with Hydra's features.
| Event | Hydra | Notes on Hydra |
|---|---|---|
| Auction Announcement | Hydra Head Initialize | Participants' payment capacity (ADA balance) can be verified, and accounts can be locked. |
| Start of Bidding Period | Hydra Head Open | Participants in the Hydra Head can start bidding. |
| Bidding | L2 Transaction | High-speed L2 enables instant and intense bidding. |
| Winning Bid | Hydra Head Close | End of the bidding period. |
| Verification | Hydra Head Contest | Verification and agreement on L2 settlement results. |
| Payment | Hydra Head Fanout | Finalization of L2 settlement results and reflection on L1. |
IoT Systems
Hydra's high real-time performance enables real-time interaction with IoT devices, which was previously challenging with traditional blockchains.
Examples include:
- Driving a motor in a Smart Gacha triggered by an L2 settlement.
- Locking and unlocking a smart lock using an L2 smart contract.
In real-world use cases where transaction speed directly impacts convenience, Hydra is considered highly compatible.
