Cardano enters the basho phase: how it improves performance

Software platform Cardano has entered the third phase of its roadmap, the basho era. It promises to improve network performance and scalability.

Cardano’s roadmap is “a summary of Cardano development,” broken down into five epochs to deliver improvements in various functionalities of the network that “will be deployed across multiple code releases.”

Now that the platform’s core smart contract capability, Plutus, has been deployed, the launch of the basho era is focused on scaling Cardano, promising “parameter adjustments, improvements, enhancements and other innovations” that will increase the capacity of the network should.

They also call it “an era of optimization” and promise to improve performance and interoperability “to better support the growth and adoption of high-transactional applications.” It is intended to give the network high performance, reliability and flexibility.

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Scalability and Interoperability

Scalability and interoperability are some of the main solutions that Cardano wants to offer as the “Ethereum killer”. As the Ethereum network works to process up to 100,000 transactions per second (tps), Cardano plans to reach millions of tps through the second-layer solution Hydra.

On the interoperability side, the basho phase will introduce sidechains, “new blockchains interoperable with the Cardano backbone,” which eventually intends to allow blockchains with different architectures and codes to communicate: interoperate.

The Cardano roadmap explains that “sidechains can be used as a sharding mechanism, offloading work from the mainchain to a sidechain to increase the capacity of the network. They can also be used to introduce experimental features without breaking the security of the main blockchain.”

Similarly, this phase will also introduce parallel billing styles: “The ability to support and switch between UTXO and account-based models will be added using sidechains.” This is also intended to improve interoperability and “support new types of network use cases.” “.

“Building on these foundations and steadily increasing capacity and throughput to cope with growth in the DApp ecosystem, onboarding first hundreds of thousands, then millions of new users. From DeFi Degens to citizens of developing countries.”

Cardano has been widely criticized for its slow start. Many people thought the platform was lagging behind and realized that it had taken a long time to deploy their first smart contract. However, Cardano Foundation CEO Frederik Gregaard argues that they take a careful approach when rolling out features, with rigorous testing and peer review.

This time, the basho phase launch report states that they expect “periods of high demand, intermittent network congestion” but see this as part of the “journey” adding that they will maintain a “considered, safe approach”. .

“We are on an exciting journey and usage will be high. Even if we sometimes get impatient, this is the way. This is how we will optimize and scale as we grow.”

What the basho era promises to solve

The optimization and scalability improvements have been divided into on-chain solutions and off-chain solutions in the report. Here’s what they want to solve:

For on-chain solutions:

  • Block size increase: The network recently increased block size by 12.5% ​​to 72KB and “further increases will be made over time.”
  • piping: intends to propagate blocks “to at least 95% of peers within five seconds” to “allow room for more aggressive scaling changes.”
  • Input endorser: “This improves the consistency of block delays and enables higher transaction rates.”
  • Memory/CPU parameters for Plutus: improves the efficiency of memory usage across the chain.
  • Plutus Script Improvements: a “more effective use of the powerful EUTXO model through intelligent contract optimization”,
  • Node Improvements: intends to “assist in the even distribution of mission and reward calculations across epochs”. The new node version “reduces peak loads at critical points”
  • Disk space: “RAM-limited systems will be able to run nodes (…) and memory will no longer be a bottleneck for scalability.”

For off-chain solutions:

  • side chains: “Assets can be moved between chains as needed.”
  • Hydra: “provides a more efficient means of settling off-chain transactions”,
  • Off-Chain Computing: “Transactions take place outside of the blockchain itself, but can offer fast and cheap transactions via a trust model.”
  • mithril: results in “fast and efficient multi-signature aggregation without compromising security features”.

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ADA’s price

ADA is trading at $1.28 at the time of writing, up 3.74% over the past 24 hours, but down 59.1% from its last peak in September 2021. Cardano enters the basho phase: how it improves performanceADA is trading at $1.28 on the daily chart | Source: ADAUSD on

Cardano enters the basho phase: how it improves performance

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