How does Cardano Improve Scalability?

Cardano improves scalability through its layered architecture, which separates the settlement layer (CSL) from the computation layer (CCL). This allows for parallel processing of transactions and smart contracts, reducing congestion and increasing throughput. Additionally, Cardano's Ouroboros Hydra protocol enables off-chain scaling by creating a network of interconnected sidechains that can process transactions independently and in parallel.