Cardano Enters Basho Phase: What Should We Expect from the Network Upgrade?

According to the IOHK, this phase promises to improve the performance and scalability of the Cardano network.

With Cardano yet to establish itself after the Alonzo Hard Fork, which gave the network smart contract capabilities, the IOHK has announced that Cardano has entered the third phase in its roadmap, the Basho Era

According to the IOHK, this phase promises to improve the performance and scalability of the Cardano network. 

Cardano Looks to Top the Scalability Chart

On the scalability side of Basho, Cardano looks to introduce Hydra, a layer 2 scaling solution that promises to ensure the Cardano network can process millions of transactions per second.


Putting that in perspective, Solana, widely regarded as the fastest blockchain, is able to handle 50,000 TPS. The upcoming Ethereum 2.0 is looking to achieve a processing speed of 100,000 TPS.

The upgrade will increase the network’s block size by 12.5% to 72 KB, while making Plutus script more memory-efficient. It will also introduce Pipeline to propagate blocks “to at least 95% of peers within five seconds.”

The interoperability side will introduce the sidechains, allowing Cardano to communicate with other blockchains. It will also help for assets to be moved between chains as needed.


This phase will also introduce off-chain computing. This will allow for transactions to be conducted on the Cardano mainnet. However, these transactions will still be fast, cheap, and offered via a trust model.

In addition, the multi-signature aggregation will ensure that the network completes transactions quickly and efficiently, without compromising security features.

On the Flipside

  • With smart contracts taking a long time to be deployed on Cardano, users are unsure how long it will take for the Basho phase to take effect

Why You Should Care

If executed effectively, the Basho Phase could set up the Cardano Network as the standard for building a scalable and interoperable blockchain.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia