Thread by @InputOutputHK

As we enter the Basho phase of #Cardano development, we’ll be focused on optimization & scalability.

Here are some of the adjustments & innovations (11, in fact…) that will all play their part in steadily increasing capacity through 2022.

🧵Ready?
bit.ly/3frzQmR

Here’s how we’ll optimize & scale securely as we grow

1️⃣ Block size increase📈
The bigger the block, the more transactions it can carry. We recently increased block size by 12.5%; we’ll apply further increases over time based on ongoing system monitoring and network health.

2️⃣ Pipelining

Improves block propagation times by coalescing validation & propagation. The goal is for blocks to be propagated to at least 95% of peers within five seconds by reducing the ‘dead time’ between blocks.

3️⃣Input Endorsers

Input endorsers improve block propagation times and throughput by allowing transactions to be separated into pre-constructed blocks. This improves the consistency of block propagation times and allows higher transaction rates.💪

4️⃣ Memory /CPU parameters for #Plutus

🖥️ More efficient memory usage across the chain. Specifically, memory improvements in Unspent Transaction Output (UTXO) handling, stake distribution, live stake distribution and pools, and hash representation.

5️⃣ Plutus script enhancements

Even more effective usage of the powerful eUTXO model through smart contract optimization, including reference inputs, #Plutus Datums & script sharing.

6️⃣ Node enhancements

Improvements will help even distribution of stake and reward computations across the epochs, thus providing greater headroom for block size increases.

7️⃣ On-disk storage 💿

By storing portions of the protocol state on disk, nodes will need to hold less in memory.So RAM-constrained systems will be able to run nodes provided they have sufficient storage, and memory will no longer be a bottleneck on scalability.

8️⃣ Sidechains ⛓️

EVM sidechains will add capacity; projects coming to Cardano include dcSpark’s Milkomeda and IOG’s Mamba.

9️⃣Hydra

Introduces isomorphic state channels to maximize throughput, minimize latency, incur low to no costs & reduce storage requirements. Hydra provides a more efficient means to process transactions off-chain while using the main-chain ledger as the secure settlement layer.

🔟Off-chain computing

Offloading some of the computation, for example with Asynchronous Contract Execution (ACE) can drive greater core network efficiency. Transactions occur outside the blockchain itself, yet can offer fast, cheap transactions via a trust model.

1️⃣1️⃣ Mithril

Mithril will improve chain synchronization while maintaining trust. The result? Multi-signature aggregation that is fast and efficient without compromising security features.

Scaling #Cardano is a process. Early in this process, we do anticipate periods of intense demand, with network congestion at peak times. We’re early on an exciting journey & usage will be high.

At times we’ll all feel we want to move quicker. But secure, incremental improvements & building for the long term remains paramount. Remember: slow & steady wins the race 🏁.

Security, decentralization and steady, careful scalability. It's all in the plan. Always has been.

To read more: bit.ly/3frzQmR
#Cardano $ADA