A crypto researcher warns that the upcoming update (Cardano-ADA) Hydra is not 100% safe, will all wallet balances be at risk of theft?
One of the leading researchers warns that the second layer solution update Hydra is not completely safe, raising questions about the price predictions of Cardano ($ADA ) after it recently bounced back to $0.40.
A prominent supporter of the Cardano Blockchain warns the community that the second layer scaling solution known as Hydra may not be as safe as they think, will investors' balances be at risk? Does this justify the negative price predictions for Cardano (Cardano)?
In a lengthy post on platform X, the account holder YODA, known for supporting the Cardano blockchain, highlighted a potential vulnerability in the design of the Hydra solution. This technical weakness is supposed to allow transaction auditing node operators to interfere in users' balance affairs, clarifying that the balances staked on the L2 layer solution, delegated to independent transaction auditing entities called Hydra Heads, are fully managed by these entities and not by the currency holders themselves.
Theoretically, Hydra Head operators can, if colluding, input incorrect transactions and sign them without needing access to the private keys of Cardano holders. YODA confirmed that 'every update to the signatures requires all Hydra Head operators to complete it using the access keys of the validators, not the users.' He added: 'If these parties collude, they could collectively sign flawed transactions that allow them to redistribute users' balances among themselves.'
Price predictions for Cardano: The downward trend remains intact despite the $4.00 level providing some support.
Aside from Dogecoin (Dogecoin-DOGE), Cardano ( $ADA ) has been one of the worst 10 performing prominent cryptocurrencies this year, with total losses reaching 49% so far.
Source: TradingView
Although the daily chart shows a temporary support level at $0.40, the price of Cardano continues to follow a prolonged downward path without showing signs of a reversal. To reverse its downward trend, it needs to break the $0.52 barrier; otherwise, it might undergo a sharp correction wave that pushes it down to $0.32, which could expose the currency to an additional 25% loss in value.
This comes amid prominent cryptocurrencies like Cardano facing difficulty in recording new price peaks during the current market cycle, while a new cryptocurrency called Maxi Doge (Maxi Doge-MAXI) successfully raised over $4.28 million within a few weeks of the launch of the promising community meme coin.
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