<p>Micro-transactions could be done one layer above (for example <a href="https://iohk.io/en/blog/posts/2020/03/26/enter-the-hydra-scaling-distributed-ledgers-the-evidence-based-way/" rel="noreferrer">Hydra</a>) and the transaction fees will only for settlement.</p>
<p>Also, it is fairly easy to lower to fees to match the real-world price. In the future, maybe an AI system can do that will a help of oracle.</p>

CC BY-SA 4.0
2021-05-26T06:34:54.913Z
2021-05-26T06:34:54.913Z
Marek Mahut - StakeNuts
<p>Hydra is a layer 2 solution where transactions are completed off chain, moving ADA to Hydra will open a Hydra head where transactions will be made, once the Hydra head is closed I think the main chain then confirms transactions within the Hydra head with 1 transaction fee effectively executing hundreds or thousands of tx's for a single fee</p>

CC BY-SA 4.0
2021-05-26T06:41:57.347Z
2021-05-26T06:41:57.347Z
Dan Holbrooke
<p>I've seen the broader implications of throughput that layer 2 solutions like Hydra will provide for the ecosystem. But I'm curious about how the Cardano ecosystem will provide cost effective solutions for users when Cardano's value starts to increase. For instance, when Cardano reaches $20 (which I am quite sure it will easily do in the not so distant future) if transaction fees remain in the ballpark of .16-.17 ADA we are looking at ~$3.4 for even smaller transactions on the base Cardano chain. How is the community planning on dealing with the &quot;micro-transactionality&quot; that will inevitably come out of Cardano's increasing adoption especially within the rapidly developing community of friends we have in Africa? Would this be a layer 1 solution, or a layer 2 development utilizing a new infrastructure? Cheers!</p>

<blockchain>
What are the long term micro-transaction plans for Cardano?
# What are the long term micro-transaction plans for Cardano?

(Asked by: username_0 on 2021-05-26)

I've seen the broader implications of throughput that layer 2 solutions like Hydra will provide for the ecosystem. But I'm curious about how the Cardano ecosystem will provide cost effective solutions for users when Cardano's value starts to increase. For instance, when Cardano reaches $20 (which I am quite sure it will easily do in the not so distant future) if transaction fees remain in the ballpark of .16-.17 ADA we are looking at ~$3.4 for even smaller transactions on the base Cardano chain. How is the community planning on dealing with the "micro-transactionality" that will inevitably come out of Cardano's increasing adoption especially within the rapidly developing community of friends we have in Africa? Would this be a layer 1 solution, or a layer 2 development utilizing a new infrastructure? Cheers!

**Tags:** blockchain

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## 2 answers

### Answer by username_1 on 2021-05-26. Score: 5

Micro-transactions could be done one layer above (for example [Hydra](https://iohk.io/en/blog/posts/2020/03/26/enter-the-hydra-scaling-distributed-ledgers-the-evidence-based-way/)) and the transaction fees will only for settlement.

Also, it is fairly easy to lower to fees to match the real-world price. In the future, maybe an AI system can do that will a help of oracle.


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### Answer by username_2 on 2021-05-26. Score: 3

Hydra is a layer 2 solution where transactions are completed off chain, moving ADA to Hydra will open a Hydra head where transactions will be made, once the Hydra head is closed I think the main chain then confirms transactions within the Hydra head with 1 transaction fee effectively executing hundreds or thousands of tx's for a single fee


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