The Ethereum Founder, Vitalik Buterin, presented a solution for Plasma scaling in the EthCC conference held in Paris. The solution, as per Vitalik, would help increase the computational power of Ethereum, the world’s second-biggest blockchain.
The creation of this solution goes back to last year, involving Bitcoin Lightning Network, and Buterin. This plasma scaling solution is one of the many others currently under development for boosting the capacity of Ethereum. This plasma scaling solution aims to create a layer of smart contracts which would interact with the main blockchain.
How Plasma Scaling Solution Aims to Overcome Scalability?
Presently, the current iteration of the prototype needs all the users to download & validate each smart contract within the plasma system. In this new session about the proposed solution, Buterin explained the limitation to a handful of data points.
One of the primary reasons, as described, for the use of this plasma scaling solution is to reduce the amount of data required by the client. Therefore, this plasma scaling solution would help reduce the need to download the entire plasma history. However, the users would be able to generate “plasma coins” and send them to the deposit. The users would not need to download and verify everything. Instead, they would be able to track the tokens that they created within the system.
How Will Plasma Scalable Solution Facilitate Users?
Once the plasma scalable solution is implemented, the users would only need to verify availability & correctness of the Plasma coin. They could just simply track tokens created by them in the system.
Here is what Buterin had to say about this solution.
“Now users only have to verify the availability and correctness of the Plasma chain only at the specific index that they want to spend, or the specific index of any coins that they own and coins that they care about.”
Developers Behind the Plasma Scaling Solution
The two main developers, Karl Floersch and Dan Robinson, are behind the development of the plasma scalable solution. The idea still needs to undergo testing before it can be adopted on a wider scale. Buterin claims that this minimized system could potentially have various essential use cases, including protection of cryptocurrency exchanges against large-scale hacks.
This solution also vows to eliminate the need for directly dealing with users’ funds. Thus, potentially exchanges could provide order book functionality and also insure against losses using plasma contracts.
Plasma Scaling Solution – New Hope to Cryptocurrency Exchanges
Cryptocurrency exchange hacks have become a continuous source of trouble for the blockchain enthusiasts. The biggest cryptocurrency exchange hacks against the likes of Mt. Gox, Bitfinex, Bitcoinica, BitFloor, and Bitstamp needed the industry to come up with long-term solutions to protect them. Therefore, the plasma scalable solution, among others, would hopefully make these exchanges safer for us to trade and increase investor confidence in the future.