Cardano To Launch First Permissionless Layer 2, Outpacing Ethereum

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As a researcher with extensive experience in the blockchain industry, I find the development of Cardano’s Midgard Layer 2 solution to be an exciting leap forward for decentralized technologies. With my background in understanding the intricacies of various blockchains and their scalability issues, it is refreshing to see a project like Midgard that seems to be addressing these challenges head-on.

At the Cardano Summit 2024 in Argentina, it was announced that Cardano will reveal its initial permissionless Layer 2 (L2) solution. This move places Cardano ahead of other blockchains such as Ethereum. During his speech, Philip DiSarro, CEO and founder of Anastasia Labs, shared details about the upcoming launch of Midgard, a rollup that aims to boost ADA‘s scalability and functionality.

Disarro pointed out the exceptional progress of Midgard through X, saying, “No blockchain has yet to successfully implement permissionless general-purpose rollups in their entirety. It’s worth noting that the leading ‘Layer 2’ solutions currently in the blockchain industry operate on custodial multisignature systems.” He underscored that most existing Layer 2 solutions primarily depend on custodial multisig schemes, which introduce centralized components into an otherwise decentralized blockchain ecosystem.

Cardano Is Ahead Of Ethereum, Solana And Sui

Midgard stands out by adopting the robust security of Cardano’s Layer 1 (L1), achieved through various cutting-edge characteristics. Unlike Ethereum’s Layer 2 solutions such as Arbitrum, Optimism, and Base, Midgard functions without a centralized sequencer, challenge response proofs, multisignatures, or custodians. Instead, it employs a permissionless operator set, trustless fraud proofs, and trustless deposit and withdrawal processes, maintaining that the inbox and outbox systems remain entirely resistant to censorship.

Through X, DiSarro emphasized the distinctive Extended Unspent Transaction Output (EUTxO) architecture of Cardano. “This is accomplished through Cardano’s unique EUTxO architecture. You might have wondered about issues like UTxO contention, small block size, local state, and transaction determinism. However, Midgard intends to demonstrate that these ‘issues’ are not problems at all.

According to Anastasia Labs’ founder, it is quite the contrary; these properties are incredibly potent and collectively offer a distinctive value not found in any other system. In essence, they serve as the fundamental building blocks that enable Midgard to exist at all, as DiSarro clarified.

Disregarding the construction of Midgard on alternative blockchain platforms like Ethereum, Solana, or Sui appears to be an impractical proposition, according to DiSarro, due to its unique compatibility with Cardano’s architecture.

In the upcoming months, the release of Midgard is eagerly awaited. DiSarro is certain about its significance and states, “True rollups, or L2 protocols that carry the same level of security as the L1, are expected in a few months. Midgard, our pioneering optimistic rollup, is one of a kind and operates on a permissionless basis.

The announcement garnered attention from within the ADA community and beyond. Danogo, operating the first decentralized exchange (DEX) trading Optim Bond tokens on Cardano, referenced DiSarro’s presentation on the Cardano Summit: “Only on Cardano you can have a new generation of Rollup that is permissionless! There is no multi sig that controls the Layer-2 like on Ethereum! Even Vitalik recognizes that now. […] That inherits full security from L1. And Cardano will have the first L2 that is fully permissionless in a few months!!!!”

Additionally, Charles Hoskinson, creator of Cardano, expressed agreement with DiSarro’s vision and the prospect of Midgard by sharing a meme that read, “This guy understands,” suggesting his approval.

At press time, ADA traded at $0.343.

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2024-10-26 11:41