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Cardano promotes its long -term scaling strategy with fresh wool of innovation 2 (L2) that moves beyond the border Hydra frame.
This next phase was outlined at a high level Session In June 2025, organized by a company Global input output (iOG), The main development team for Cardano.
The event was convened by a technical leader from the intersection group, developers from leading projects based in Cardan and academic partners.
Together they outlined the plan where Hydra is only one part of the wider L2 portfolio to improve speed, privacy and interoperability across the ecosystem.
During the session, several L2 solutions were focused on the event, including Midgard, Hydra and others.
Hydra, built initially for fast chain transactions, now has two key configurations. One version, Hydra Head, focuses on small, solid groups of participants using state channels, while the other Hydra Tail receives a vertical model focused on higher volumes of transactions.
Midgard, developed by Anastasia Labs, was introduced as a cardanorotive optimistic summary.
The project contains deterministic evidence of fraud and minimal dependence on centralized administration. It was inspired by the design Ethereum Layer-2 solutions Optimism and fuel. Its Mainnet starts is expected by the end of the year.
Meanwhile two Projects based on zero knowledge, Vira and Eryx, they pursued prominently at Cardano.
The Zarfold compresses hundreds of transactions into a single submission to increased efficiency. On the other hand, Eryx aims to deploy the ZK bridge that allows safe communication between Cardano chains.
Another presentation came from the Sundae laboratories, which works on Gummmiworm, a hydra-inspired summary that separates the carrying out of the binding. This change could support more flexible defi operations on Cardano.
Panelists stressed that the future of Cardano depends more on the portfolio of interoperable L2 rather than on the only dominant solution.
They stated that each L2 will serve different roles and maintain a folder through common standards and shared infrastructure.
According to them:
“The aim is to offer a portfolio of solutions optimized for different cases of use-zod definitions and privacy after a high-performance application-za shared standards that ensure trouble-free interaction between attachments.”
Meanwhile, they also emphasized the need to create a unified interface layer to ensure smooth interaction across these L2. Participants noted that this approach aims to avoid fragmentation Ethereum’s scaling ecosystem.
However, they noted that challenges such as fragmentation of liquidity and poor user experience remain obstacles to receiving L2 solutions.
For this reason, they proposed several solutions, including lift of liquidity, better integration of cross protocols and motivational structures that reward users and developers.