Scalability is one of the main focuses of Ethereum. Currently, the limitations its network faces in terms of capacity and speed prevent it from being adopted on a larger scale around the world.

Ethereum Plasma (Plasma) was jointly proposed by Ethereum co-founders Vitalik Buterin and Joseph Poon. The concept was born in August 2017 as a scaling solution for Ethereum. Along with Thaddeus Dryja, Joseph Poon was also responsible for the original concept of the Lightning Network, a Bitcoin scaling solution proposed in 2015. Although both Plasma and Lightning Network have been proposed as blockchain scaling solutions, they have their own mechanisms and peculiarities.

This article will briefly introduce Ethereum plasma, but it is worth noting that plasma is not a separate project, but an off-chain expansion technology, or a use case. A framework for building scalable applications, it can be implemented in different ways by different research groups or companies.

How does plasma work?

The main idea of Ethereum Plasma is to build a sidechain framework that will communicate and interact with the main chain (in this case Ethereum) as little as possible. Such a framework is designed to operate a tree-like blockchain that is arranged in a hierarchical manner such that many smaller chains can be created on top of the main area. These smaller chains are also called Plasma chains or sub-chains.

Plasma's structure is built through the use of smart contracts and Merkle trees, which can create an unlimited number of child chains - basically all parent chains. A smaller copy of the Ethereum blockchain. On top of each sub-chain, more chains can be created, which is why it is called a tree structure.

Basically, each Plasma sub-chain is a customizable smart contract that can be designed to work in unique ways to meet different needs. This means that chains can coexist and operate independently. Ultimately, Plasma will enable businesses and companies to implement scalable solutions in a variety of ways based on their specific context and needs.

Therefore, if Plasma can be successfully developed and implemented in the Ethereum network, the main chain (of Ethereum) will be less likely to become crowded because each sub-chain will be designed to Work with a specific goal - this is not necessarily related to the goal of the main chain. Therefore, the sub-chain will alleviate the overall work of the main chain.

Anti-counterfeiting certificate

Between child chain and root chain Communication between them is protected by anti-counterfeiting certificates, and the root chain will be responsible for keeping the network secure and punishing malicious actors.

Each sub-chain has its own mechanism to verify blocks and implement anti-counterfeiting proofs, which can be built on top of different consensus algorithms. The most common ones are Proof of Work, Proof of Stake and Proof of Authority.

Anti-counterfeiting proofs ensure that if malicious behavior occurs, users are able to report dishonest nodes, protect their funds and exit transactions (which involves interaction with the main chain). In other words, anti-counterfeiting proofs serve as a mechanism through which child chains in Plasma can submit complaints to their parent or root chains.

MapReduce

The plasma white paper also proposed a very interesting Application, called MapReduce computing. Basically, MapReduce is a set of functions that are useful for organizing and computing data across multiple databases.

In the context of Plasma, these databases are blockchains, and the tree structure of the chain allows MapReduce to be used to verify the data in the tree chain, which greatly improves Network efficiency.

Large-scale exit problem

A major problem plaguing plasma is the large-scale The exit problem, which refers to a situation where many users try to exit their plasma chain at the same time, flooding the root chain and causing massive network congestion. This can be caused by fraudulent activity, cyberattacks, and any other type of critical failure that a subchain or group of chains may experience.

Conclusion

Basically speaking, plasma is an off-chain solution , which attempts to significantly improve the overall performance of the Ethereum network by creating many smaller, tree-structured chains. These chains will relieve the main chain of work, allowing the main chain to handle more (other) transactions per second.

The hierarchical model of linked blockchains proposed by Plasma has great potential and is currently being tested by many research groups. With proper development Plasma may improve the efficiency of the Ethereum blockchain and provide a better framework for the deployment of decentralized applications. Additionally, the idea could also be adapted and implemented by other cryptocurrency networks as a way to avoid scalability issues in the future.

Ethereum Plasma is an open source project and the public repository can be found on their GitHub. In addition to Ethereum, there are many other cryptocurrencies and GitHub repositories doing work on plasma. Some examples include OmiseGO, Loom Network, and FourthStateLabs. For more detailed and technical information, you can refer to the official plasma white paper or the LearnPlasma website.

Stay tuned for more and don’t forget to check out our other videos on Binance Academy!