Cardano Network Reaches 96% Load: What Does It Mean?

Record-High Cardano Transaction Fees Reach New Level Since August 2022

Yesterday, the Cardano (ADA) network experienced a 96% load, which caused some worry among its users. Sebastien Guillemot, the CTO and co-founder of DC Spark, shared this development on Twitter. Although the network was close to reaching its maximum capacity, it did not actually reach 100%. Nonetheless, it is worth exploring what could have happened if the network had reached full capacity.

The Cardano (ADA) network operates on a “first-come-first-serve” basis for executing transactions and does not prioritize them. If the network reached its maximum capacity, transactions would have been queued up, and users would have experienced longer wait times. 

Additionally, some transactions may not have been added to the block. This is due to “light wallet mempools hitting capacity,” which means that the mempools, which store unconfirmed transactions, were full. Sebastien Guillemot mentioned this in his tweet about the ADA network reaching 96% load.

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The congestion in the Cardano (ADA) network could lead to stake pools selling priority access to users and dApps. This means that users would need to pay to have their transactions verified, and some DEXs could be prioritized over others. It is not the first time that the Cardano network has experienced this kind of congestion, as a similar event occurred during the 2021 bull run.

How To Tackle This Problem? DC Spark Co-founder Shares Insight

Although significant improvements have been made to the ADA network’s scalability since it last hit maximum load, it was still close to reaching its limit, highlighting the need for further enhancements to its infrastructure.

To tackle the problem of maximum load, an option is to increase the block size of the Cardano (ADA) network. This approach can help accommodate more transactions and lower transaction fees as well.

Sebastien Guillemot, the CTO and co-founder of DC Spark, suggests that several solutions can help increase the Cardano network’s capacity and address the maximum load issue. One approach is to increase the block size, which can create more space for transactions and possibly lower fees.

 Another way is to migrate more dApps to Plutus V2, which can significantly improve the network’s efficiency. 

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Additionally, using Input Endorsers and alternative smart contract platforms such as Aiken could also help increase network capacity. Finally, sidechains and layer-2 networks could be utilized to reduce the load on the layer-1 network.

Despite its popularity, the Cardano (ADA) network still faces scalability issues. However, the Cardano team has proposed several solutions to improve the network’s capacity, including increasing block size, Plutus V2 migration, using Input Endorsers and alternative smart contract platforms, sidechains, and layer-2 networks. 

Even though the network hit 96% load recently, the team consistently works to improve its efficiency. Nevertheless, the project remains among the top crypto projects in terms of network development activity. 

At the time of writing, the network load for Cardano (ADA) was 64% in the last hour and 66% in the last 24 hours.

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