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The cryptonews hub > Blog > Trending News > Cardano sets sights on a new era of scalability with layer-2 advancements
Trending News

Cardano sets sights on a new era of scalability with layer-2 advancements

Crypto Team
Last updated: June 25, 2025 6:18 pm
Crypto Team
Published: June 25, 2025
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wp header logo 885 Cardano sets sights on a new era of scalability with layer-2 advancements

The event convened technical leaders from the Intersect Working Group, developers from prominent Cardano-based projects, and academic partners.

Together, they outlined a roadmap where Hydra is just one part of a broader L2 portfolio designed to improve speed, privacy, and interoperability across the ecosystem.

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At the event, several L2 solutions, including Midgard, Hydra, and others, were spotlighted during the session.

Hydra, built initially for fast off-chain transactions, now has two key configurations. One version, Hydra Head, focuses on small, fixed participant groups using state channels, while the other, Hydra Tail, adopts a rollup model aimed at higher transaction volumes.

Midgard, developed by Anastasia Labs, was introduced as a Cardano-native optimistic rollup.

zkFold compresses hundreds of transactions into a single submission for increased efficiency. On the other hand, Eryx aims to deploy a ZK bridge that enables secure communication between Cardano chains.

Another presentation came from Sundae Labs, which is working on Gummiworm, a Hydra-inspired rollup that separates execution from custody. This change could support more flexible DeFi operations on Cardano.

The panelists emphasized that Cardano’s future depends on a portfolio of interoperable L2s, rather than a single dominant solution.

They stated that each L2 will serve distinct roles, maintaining composability through common standards and shared infrastructure.

According to them:

“The goal is to offer a portfolio of solutions optimized for different use cases—ranging from DeFi and privacy to high-throughput applications—underpinned by shared standards that ensure seamless cross-protocol interaction.”

However, they noted that challenges like liquidity fragmentation and poor user experience remain hurdles to adopting the L2 solutions.

Due to this, they proposed several solutions, including liquidity bonding, better cross-protocol integration, and incentive structures that reward users and developers.

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