Please describe your proposed solution
Our proposed solution, Midgard, is a Layer 2 (L2) scaling solution for the Cardano blockchain, designed to enhance scalability, speed, and cost-efficiency while preserving the security and decentralization of the Cardano Layer 1 (L1). Midgard aims to address the issues of network congestion and long wait times that occur during high-frequency chain activities, such as highly anticipated project launches.
Midgard is isomorphic to the Cardano L1, meaning that decentralized applications (DApps) can seamlessly redeploy on Midgard using the exact same code and tech stack. This feature significantly reduces the burden on developers, allowing them to leverage the benefits of Layer 2 without modifying their existing codebase, tech stack, or architecture. This ease of transition encourages broader adoption and utilization of the Layer 2 solution.
Midgard is built on a robust codebase, largely vendored from the Cardano ledger, but with significant modifications to consensus mechanisms and the introduction of logic to regulate a constrained validator set. Key improvements include:
- Increased Blocksize Limits: Allowing for more transactions per block.
- Expanded Script Execution Units: Enabling more complex operations within each transaction.
- Reduced Block Times: Block times have been reduced to 3 seconds, with ongoing work to decrease this further.
Midgard offloads non-critical financial activities and high-volume transactions, such as NFT launches, staking platforms, on-chain games, and meme-coin trading, from the Cardano L1 to the Layer 2. By managing these activities on Midgard, the main chain experiences reduced congestion, ensuring that critical transactions on the L1 are processed efficiently, even during peak periods.
Despite offloading significant transaction volume, Midgard remains dependent on the Cardano L1 for security and consensus. It regularly interacts with the main chain to publish checkpoints of the L2 state, ensuring continuous transaction flow and fee generation for the Cardano L1. This integration supports the economic model of Cardano, ensuring sustainability and growth of the main network.
Several projects, including FluidTokens, have already committed to utilizing Midgard. This early adoption showcases the confidence of the community and developers in the capabilities of Midgard to deliver a high-performance Layer 2 solution.