2024-03-11
Scale
- A March 2024 deep dive on Cardano scalability, opening on full blocks during an NFT drop and explaining that Cardano is designed to run at redline without failing or losing security.
- Lays out three layers of scale: optimizing the base protocol via block size, block time, and efficient transactions with Aiken, then layer 2 and service partner chains like Hydra, Mithril, Ask Ben, and World Mobile, then global-scale Leios.
- Uses a Nintendo-to-Super-Nintendo metaphor: you go from Mario 1 to Mario 3 by optimizing the same hardware before demanding new capabilities, adding tiered pricing and surge handling like the Netflix Tyson fight.
- Grounds it in three principles: inclusive accountability so anyone can verify, universal access so any computer can join consensus, and preserving Ouroboros's 50 percent Byzantine security.
- Argues naive high-TPS chains centralize into server-client Web2, and reframes the congestion FUD as a busy restaurant whose only complaint is that the wait is too long.
41 entries
Opens on a live extended UTXO explorer showing full, saturated blocks during an NFT drop, and reassures that Cardano is designed to run this way.
Unlike an engine at redline a full Cardano block just carries transactions to the next block, with throttling mechanisms for high and low load so nothing overflows or collapses.
Frames scale as a multi-parameter model: increasing block size, decreasing block time, and more efficient transactions that do the same work with less.
Block size runs at 80 kilobytes and that Aiken and Plutus V2 give a 10x transaction-size reduction over Plutus V1, with a community-and-engineer committee studying more headroom.
The second category is layer 2 and batching, including Mithril and Hydra, and says Hydra is a well-developed open-source project growing rapidly with many commits and releases.
Hydra is the linking tissue between on-chain and off-chain, unlocking flavors of the protocol like the high-TPS tail payments protocol for tipping and micropayments.
Hydra opens many flavors on shared infrastructure, that the same can be done with rollups and recursive snarks in the ZK world, and that Mithril and Hydra are the first entry points.
Hydra is on mainnet with 39 active contributors, and deeper features like incremental decommit enable poker, blackjack, and interactive games, with the hardest parts already over.
Points to TapTools showing SingularityNET as a roughly 1.5 billion dollar project and wrapped Ergo doing well, a very different ecosystem than 12 months ago.
Beating the base protocol splits into three categories, the first being finality: fast settlement for ATMs, point of sale, and vending machines, delivered by the near-ready Peras paper.
Peras adds fast finality, led by Arnaud who also works on Hydra, first used for moving assets to and from partner chains, likely implemented by Tweag as with Ouroboros Genesis.
The second category is special services via partner chains, since transactions like WingRiders swaps or Ada Handle would be better suited to a service layer than the main net.
Illustrates with a next-generation SingularityNET LLM called Ask Ben: you send a query as a transaction and get the answer back as an oracle, potentially millions to billions of queries a day.
Argues you would not want a private medical query recorded publicly forever on the main chain, so a partner-chain service network handles it, paid in ADA or via Babel fees.
Blocks are full of diverse traffic like World Mobile's millions of phone handshakes and iagon's decentralized storage, millions to billions of transactions even at modest scale.
Special service networks segregate what must be kept forever and public from what is temporary, user-defined like rent, or private, which is what Midnight provides, and partner chains can query each other.
The third and sexiest category, variously called parallel chains, input endorsers, or Leios, is under heavy review with the paper nearly out, moving from a sequential chain to an asynchronous network.
Leios uses input blocks and key blocks stitched back together, pushing transactions per transaction way up asynchronously, never throughput-limited as long as things do not contradict.
Contrasts with DAG networks like Red Belly and Narwhal and Tusk that hit hundreds of thousands of TPS optimistically but collapse to sequential speed under malicious patterns.
Leios took longer because they carefully solved recovery from attack, supported by papers like Ledger Redux, an Ouroboros recovery paper, and the Parallel Chains paper.
Uses the original Nintendo to explain why you optimize first: the NES is a bare-bones 1.79 megahertz machine with 2 kilobytes of RAM, which is why the first Mario Brothers looks so simple.
Shows Mario 3 on the very same hardware looking radically better with overworld maps and flight, proving you optimize and extend the existing protocol before adding new capabilities.
Introduces transaction prioritization and tiered pricing: you may want settlement in one second at a cash register, a hundred seconds at a restaurant, or eight hours for overnight shipping.
Compares tiered pricing to packet prioritization and quality of service in software-defined networking, and ties it to Hydra as an ephemeral special-purpose network.
Gives the Netflix Tyson versus Jake Paul fight as a surge case: 20 to 50 million viewers tipping in real time through a Hydra head, batched into a single settlement at the end of the fight.
NFT drops are smaller versions of that surge, known ahead of time, so off-chain and on-chain load balancing plus tiered surge pricing handles the finite resource like highway or parking tolls.
Only after optimization, capabilities, and service networks are sorted, all coming online with CIP 1694, do you reach global scale, where ZK rollups via Plutus V3 and Midnight also fit.
At global scale data, storage, and CPU needs soar, but Leios makes validation a parallel process so nodes need not be giant super nodes, and Mithril lets you act like a full node without being one.
Warns naive high-TPS protocols centralize, since only a few nodes with 128 to 256 gigabytes or a terabyte of RAM can process the load, converging to a server-client Web2 model.
His first principle, inclusive accountability: if told something, Bob can verify it himself, the crux of Satoshi's vision where every node is equal, versus a trust-me-bro network.
The second principle, universal access for resource providers: any computer should join consensus, unlike expensive Bitcoin ASIC mining, and Leios aims to grow SPOs from thousands to tens of thousands.
The third principle, preserving the security model: Ouroboros semisynchronous 50-percent-plus-one Byzantine resistance with graceful failure and self-healing, not degrading as adversaries increase.
Optimization continues in parallel like writing NES games while awaiting the Super Nintendo, but Leios is a major re-architecture, with the paper and Peras coming sooner than people think.
Today full blocks do not make Cardano fail, become unusable, or lose security, only a worse user experience under load, which app developers mitigate with off-chain batchers that settle when blocks open.
Many dapps still use Plutus V1 with transactions 10x larger than Aiken or Plutus V2, so rewriting to go from 88 to 8 kilobytes beats a 10x block-size increase, like making Mario 3 on a Nintendo.
Reframes the FUD as a restaurant whose only complaint is the wait is too long, from the same people who called Cardano a ghost chain, and says high TPS elsewhere costs decentralization, verifiability, and security.
Argues abundant resources kill the incentive to optimize, since no game developer patches a shipped title for 30 percent gains, and premature high scale starves the layer 2 ecosystem and wastes block space.
Cardano and Ethereum are the only projects with an end-to-end holistic scaling view, but Cardano's is one consolidated group rather than fragmented, and innovations never regress, preserving liquid non-custodial staking and extended UTXO.
Notes MinSwap and SundaeSwap are upgrading to use on-chain resources more efficiently, with on-chain sharding coming that preserves integrity, and warns against the goalpost-moving of when-Shelley, when-Goguen, when-Coinbase.
Competitors cannot copy Cardano's hard-won design without winding back the clock, that modular extended UTXO gives state-channel isomorphism making off-chain and on-chain easy, and that Leios enables sensible sharding avoiding Ethereum's 2018 million-TPS mistakes.
Summarizes the recipe: block-size wiggle room, marketplaces for space, easy on and off-chain, service partner chains like Ask Ben and World Mobile, ephemeral and private handling, and layer-one sharding that protects small SPOs and the quantum-resistant security model.