Plasma is a solution for Ethereum Layer-2 scaling, proposed by Vitalik Buterin and Joseph Poon, to achieve high-speed transactions and enhanced overall performance.
Understanding the term
For a long time, the leading Ethereum developers have been looking for a way to increase scalability in layer-2. According to the proposal, Plasma will be constructed to place layer-2 blocks on top of the Ethereum blockchain and run as a side chain. The existence of Plasma would allow offline transactions via hundreds of side chains using a single hash of the side chain into the Ethereum blockchain.
- It needs a centralized element for the proper operation of the off-chain elements.
- Requiring a long waiting period when users want to withdraw funds.
- Security risks for exits that threaten Ethereum’s immutability
According to Vitalik Buterin, the co-founder of Ethereum, building complex features into its base layer is no longer a feasible idea.