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Updated README.md with Wyoming Stable Token mentions. #6

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8 changes: 5 additions & 3 deletions CPS-0THR/README.md
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Expand Up @@ -18,13 +18,13 @@ License: Apache-2.0

## Abstract

The Cardano mainnet occasionally experiences congestion where there are too many transactions in the memory pool to be included in the next block or in the next few blocks. Sometimes the block utilization peaks above 90% for an extended period of time. This not only impacts general user experience but it can also severely impact use cases such as airdrops, oracles, partner chains, DEXes, and Dapps. Emerging use cases and application deployments promise to accelerate the need for high throughput on Cardano. Applied research on several fronts is needed to propose and provide evidence for techniques that increase throughput measured in terms of transactions, transaction size, and script execution units. Such work should be based on a clear understanding of stakeholder requirements.
The Cardano mainnet occasionally experiences congestion where there are too many transactions in the memory pool to be included in the next block or in the next few blocks. Sometimes the block utilization peaks above 90% for an extended period of time. This not only impacts general user experience but it can also severely impact use cases such as airdrops, oracles, partner chains, DEXes, and Dapps. Emerging use cases and application deployments promise to accelerate the need for high throughput on Cardano. Moreover, this need is intensified by the fact that existing projects and solutions, such as the Wyoming stable token, are actively seeking suitable blockchain platforms and making their decisions based on key characteristics like throughput. Therefore, increasing throughput capacity is not just beneficial, but rather a prerequisite for attracting more transactions and projects to the Cardano chain. Applied research on several fronts is needed to propose and provide evidence for techniques that increase throughput measured in terms of transactions, transaction size, and script execution units. Such work should be based on a clear understanding of stakeholder requirements.

## Motivation

The Cardano mainnet occasionally encounters periods of congestion, where the number of pending transactions in the memory pool exceeds the network's capacity to include them in the upcoming block or even the next several blocks. During these times, block utilization can consistently peak above 90%, sometimes for an extended duration. This high level of congestion not only degrades the general user experience by causing delays in transaction processing but also poses significant challenges for specific use cases. For instance, activities such as airdrops, which require efficient processing of large numbers of transactions, can be significantly hampered. Similarly, oracles that depend on timely data updates might face disruptions, while partner chains could experience slower cross-chain interactions. The impact is also felt by decentralized exchanges (DEXes) that need fast transaction confirmations to maintain liquidity and decentralized applications (DApps) whose performance and user interactions are affected.

Moreover, the ongoing evolution of the Cardano ecosystem is expected to amplify these demands. New and emerging use cases, along with an increasing number of application deployments, are likely to accelerate the need for higher throughput and improved scalability on the network. As the ecosystem expands to support more diverse and sophisticated use cases, such as real-time financial applications, gaming, or supply chain solutions, the pressure on Cardano's infrastructure to handle larger transaction volumes efficiently will continue to grow. Addressing these scaling challenges will be essential to ensure a seamless experience for users and to maintain Cardano’s competitive position in the rapidly evolving blockchain space.
Moreover, the ongoing evolution of the Cardano ecosystem is expected to amplify these demands. New and emerging use cases, along with an increasing number of application deployments, are likely to accelerate the need for higher throughput and improved scalability on the network. As the ecosystem expands to support more diverse and sophisticated use cases, such as real-time financial applications, depin, gaming, or supply chain solutions, the pressure on Cardano's infrastructure to handle larger transaction volumes efficiently will continue to grow. Addressing these scaling challenges will be essential to ensure a seamless experience for users and to maintain Cardano’s competitive position in the rapidly evolving blockchain space.

Cardano's current throughput (measured both in data rate and available script execution units) is usually (but not universally) adequate for the current demand. There is also some protocol-parameter opportunity to increase the block sizes and script execution limits to meet emerging future demands for increased network capacity. There are however fundamental limits to how far the block size and the script execution budget can be pushed, while maintaining system security.

Expand All @@ -44,7 +44,7 @@ Thus, while the need for raw throughput is one aspect of blockchain performance,

While recent improvements like reference scripts have provided some relief, throughput limitations persist and will become increasingly critical as on-chain activity grows. This is evidenced by events like the launches of SundaeSwap and Snek.fun, where application-level queue times reached days and order processing was severely limited due to block capacity constraints. This hinders Cardano's ability to compete and attract wider adoption.

While theoretical maximum TPS provides an indication of potential capacity, real-time TPS offers a more accurate reflection of current network capabilities. Looking at other ecosystem, [the data](https://chainspect.app/dashboard) reveals that the maximum recorded TPS for Solana was 7229 TPS, for Base 93 TPS and for Arbitrum 944 TPS. These figures are relevant for attracting new projects and investments to an ecosystem. Throughput, finality times and gas fees are among the primary technical attributes that projects look for when choosing which web3 network to pick.
While theoretical maximum TPS provides an indication of potential capacity, highest recorded TPS offers a more accurate reflection of current network capabilities. Looking at other networks, [the data](https://chainspect.app/dashboard) reveals that the maximum recorded TPS for Solana was 7229 TPS, for Base 93 TPS and for Arbitrum 944 TPS. These figures are relevant for attracting new projects and investments to an ecosystem. Throughput, finality times and gas fees are among the primary technical attributes that projects look for when choosing which web3 network to pick, as evidenced by Wyoming's Stable Token project in late 2024.

| Blockchain | Max Recorded TPS |
|---|---|
Expand Down Expand Up @@ -99,6 +99,8 @@ Even with the existing rate of transactions on the Cardano mainnet, there are pe
- Transaction "scoopers" and "batchifiers" work most efficiently when high throughput is possible.
- Air drops are well known to have caused spikes in network load and block utilization.
- Any of the above use cases that also involve executing Plutus scripts add an additional requirement of execution-unit throughput in addition to transaction-size throughput. Applications that do complex validation encounter this extra dimension of resource usage.
- For decentralized physical infrastructure, or DePin, projects, high throughput can be of critical importance because they tend to utilize micropayments and often scale exponentially as new devices are added to the network.
- In situation where multiple networks are considered, and ranked, before coming to a decision which one to use, the measure of throughput can be one of the properties compared. See [Wyoming Stable Token]([https://github.com/cardano-foundation/CIPs/pull/922](https://stabletoken.notion.site/Wyoming-Stable-Token-Commission-100c90ef13ad800ab69ff642da4ae0dc)).

The advent of the Cardano-Midnight ZK bridge and the prospect of a Cardano-Bitcoin BOS Grail bridge promise to significantly increase the transaction load on the Cardano mainnet.

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