Cardano is advancing its long-term scaling technique with a contemporary wave of Layer-2 (L2) improvements, transferring past the Hydra framework.
This subsequent part was outlined throughout a high-level analysis session in June 2025, organized by Enter Output International (IOG), the core improvement group behind Cardano.
The occasion convened technical leaders from the Intersect Working Group, builders from distinguished Cardano-based initiatives, and tutorial companions.
Collectively, they outlined a roadmap the place Hydra is only one a part of a broader L2 portfolio designed to enhance velocity, privateness, and interoperability throughout the ecosystem.
Layer-2 options
On the occasion, a number of L2 options, together with Midgard, Hydra, and others, have been spotlighted in the course of the session.
Hydra, constructed initially for quick off-chain transactions, now has two key configurations. One model, Hydra Head, focuses on small, mounted participant teams utilizing state channels, whereas the opposite, Hydra Tail, adopts a rollup mannequin aimed toward greater transaction volumes.
Midgard, developed by Anastasia Labs, was launched as a Cardano-native optimistic rollup.
The mission options deterministic fraud proofs and minimal reliance on centralized governance. It was impressed by the design of the Ethereum layer-2 resolution Optimism and Gasoline. Its mainnet launch is predicted by the tip of the 12 months.
In the meantime, two zero-knowledge-based initiatives, zkFold and Eryx, featured prominently on the Cardano occasion.
zkFold compresses a whole lot of transactions right into a single submission for elevated effectivity. Alternatively, Eryx goals to deploy a ZK bridge that allows safe communication between Cardano chains.
One other presentation got here from Sundae Labs, which is engaged on Gummiworm, a Hydra-inspired rollup that separates execution from custody. This transformation might assist extra versatile DeFi operations on Cardano.
Cardano L2 objectives
The panelists emphasised that Cardano’s future is dependent upon a portfolio of interoperable L2s, somewhat than a single dominant resolution.
They acknowledged that every L2 will serve distinct roles, sustaining composability by way of frequent requirements and shared infrastructure.
In keeping with them:
“The objective is to supply a portfolio of options optimized for various use circumstances—starting from DeFi and privateness to high-throughput purposes—underpinned by shared requirements that guarantee seamless cross-protocol interplay.”
In the meantime, in addition they burdened the necessity to construct a unified interface layer to make sure easy interplay throughout these L2s. Individuals famous that this strategy goals to keep away from the fragmentation seen in Ethereum’s scaling ecosystem.
Nonetheless, they famous that challenges like liquidity fragmentation and poor consumer expertise stay hurdles to adopting the L2 options.
Because of this, they proposed a number of options, together with liquidity bonding, higher cross-protocol integration, and incentive constructions that reward customers and builders.
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