Cardano is set to introduce its first permissionless Layer 2 (L2) solution, positioning itself ahead of other blockchains like ethereum. The announcement was made during the Cardano Summit 2024 in Argentina, where Philip DiSarro, CEO and founder of Anastasia Labs, detailed the upcoming release of Midgard, an optimistic rollup designed to improve the scalability and functionality of ADA.
DiSarro x.com/phil_uplc/status/1849565496116412636″ target=”_blank” rel=”noopener nofollow”>highlighted Midgard’s unique advancements through x, stating: “Not a single blockchain has managed to achieve true permissionless general-purpose rollups. At the end of the day, the major 'L2's in the blockchain space right now are all multi-signature custody.” He emphasized that existing L2 solutions are predominantly based on multi-signature custody schemes, which introduce centralized elements into the environment. blockchain, which would otherwise be decentralized.
Cardano is ahead of ethereum, Solana and Sui
Midgard distinguishes itself by inheriting Cardano's full Layer 1 (L1) security through several innovative features. Unlike ethereum L2s like Arbitrum, Optimism, and Base, Midgard operates without a centralized sequencer, challenge response proofs, multi-signatures, or custodians. Instead, it uses a set of permissionless operators, untrusted fraud testing, and untrusted deposits and withdrawals, ensuring that inbox and outbox mechanisms remain fully censorship-resistant.
Through x, DiSarro highlighted Cardano's unique local state exit unspent transaction (EUTxO) architecture. “All of this is possible thanks to Cardano's unique local state EUTxO architecture. UTxO containment, small block size, local state, transaction determinism – all of these “issues” may have led you to wonder why these design decisions were made. “Midgard is meant to show you that it really isn’t a problem.”
Founder Anastasia Labs also argued: “In fact, quite the opposite; They are extremely powerful properties that, together, provide unique value that simply does not exist in any other ecosystem. “These are actually the core pillars that make Midgard possible in the first place,” DiSarro explained.
Midgard's architecture supposedly takes advantage of the inherent strengths of ADA's design, making it infeasible to replicate on other blockchain platforms such as ethereum, Solana, or Sui. DiSarro stated: “You cannot build Midgard on ethereum, Solana or Sui. It is a protocol that is only possible on Cardano.”
The imminent launch of Midgard is anticipated in the coming months, and DiSarro confidently predicts its impact: “True rollups will arrive in the coming months, L2 protocols that inherit the full security of L1. Our optimistic rollup, Midgard, is the first of its kind permissionless.”
The announcement attracted attention within and outside the ADA community. Danogo, which operates the first decentralized exchange (DEX) to trade Optim Bond tokens on Cardano, referenced DiSarro's presentation at the Cardano Summit: “Only on Cardano can you have a new generation of Permissionless Rollup! There is no multi-signature controlling Layer 2 like in ethereum! Even Vitalik recognizes it now. (…) Which inherits the total security of L1. And Cardano will have the first permissionless L2 in a few months!!!!”
Additionally, Charles Hoskinson, the founder of Cardano, x.com/IOHK_Charles/status/1849661578385502470″ target=”_blank” rel=”noopener nofollow”>responded to the speech with a meme about x saying, “This guy gets it,” indicating support for DiSarro's vision and the potential of Midgard.
At press time, ADA was trading at $0.343.
Featured image of x, chart from TradingView.com
