In Short
- Hydra Pay is a project based on the Hydra protocol that aims to bring decentralized payments.
- Investors expect this kind of solution to bring activity to the network as Djed did.
Cardano decentralized payment platform: Hydra. The implementation of Hydra brings quite a lot of expectations to Cardano developers and users. It is a scaling protocol that will allow the projects of this network to have a kind of personal Layer 2 Blockchain to verify hundreds of thousands of transactions per second at a low cost.
Thus, Cardano will eventually have many such networks, as if they were many heads, hence the name of the mythological multi-headed beast “Hydra.” This solution will enable projects such as Hydra Pay, a decentralized payment system that claims to be poised to transform the way payments settle on the Cardano network. It aims to provide near-instantaneous settlement on Cardano L2 and its compatibility with Web 3.0 wallets.
As we said before: this is a payment solution in the style of Paypal, Google Play, etc., only focused on the Cardano network and fully decentralized. The developer of this proposal is the Twitter user AimDemoShip, who, from his Github repositories, shows the construction of this solution. In addition, on Twitter, he has shown us how this tool works:
One of the outstanding features of Hydra Pay is its ability to facilitate almost instant settlement. It is possible thanks to the Hydra protocol, which allows off-chain transaction processing through parallel networks called “Heads.”
ICYMI: IOG is collaborating with @obsidian_llc to drive the development of use cases based on the Hydra Head protocol.
— Input Output (@InputOutputHK) November 17, 2022
Hydra for Payments showcases how to simplify the use of the Hydra Head protocol for a variety of payment use cases on Cardano. More: https://t.co/ewb72fjf41
Hydra, SEC will affect ADA prices?
As investors, it is legitimate to wonder about the real potential of these solutions in Cardano. And while it is impossible to forecast these types of developments accurately, we can give a personal assessment:
First, We can assess the demand for products and services on the Cardano blockchain network through the volume of transactions. Precisely DeFi projects significantly impact Cardano transactions; for example, the launch of Djed significantly increased activity on the network.
Therefore, with the deployment of Hydra and the emergence of projects such as Hydra Pay, a significant increase in Cardano’s trading volume is expected. However, we won’t see or know the real impact until implementation. The exact launch date of Hydra Pay has yet to be confirmed; We all expect it to be a central offering of the Cardano protocol. Developers have already conducted tests on the Android version since May 2023.
Is Cardano a Security?
It is a common question among cryptocurrency enthusiasts whether Cardano is a security. The answer to this question is complex, depending on each jurisdiction’s specific circumstances and regulations. However, it is essential to note that developers designed Cardano to focus on decentralization, interoperability, and sustainability, which are not typical characteristics of securities. Additionally, the Cardano Foundation and its partners have worked closely with regulatory authorities to ensure compliance with applicable laws and regulations. Ultimately, it is up to each investor to do their due diligence and make an informed decision about investing in Cardano or any other cryptocurrency.
The problem with the SEC arises from the ICO concept as a parallel to a traditional company stock public offering. A crypto ICO is a fundraising method that utilizes cryptocurrencies such as Bitcoin or Ethereum to raise capital for a new blockchain-based project or startup. It is similar to an initial public offering (IPO) in traditional finance, but instead of offering company shares, investors receive tokens or coins in the new project. You can trade these tokens or coins on cryptocurrency exchanges. ICOs have gained popularity in recent years due to their potential for high returns and the ability to invest in new and innovative technologies. However, they also come with risks and regulatory challenges, and investors should thoroughly research the project and team before investing in an ICO.
ADA’s price needs innovation to resurface
Cardano is one of the projects most affected by SEC lawsuits against crypto projects. Therefore, this is when this network needs decentralization and innovation the most to raise capital from new markets. Cardano’s ADA price is challenging as it tries to overcome obstacles. Over the past week, ADA attempted to rise above the $0.285 area. It even overpowered resistance at $0.295, but bearish traders were active near the $0.30 mark.
A high was formed around $0.302 before a further decline occurred. The price dipped below the $0.285 level and tested support at $0.277. At the time of writing, it is consolidating with losses below $0.292, following a similar pattern to Bitcoin and Ethereum. If Cardano’s price fails to break above the $0.292 resistance level, it will likely continue its downtrend. Immediate downside support is near the $0.282 level and the uptrend line mentioned above.
The following support is near the $0.277 level. If the price breaks below this number, it could open the door for a steep decline toward $0.255.