Vitalik Buterin, known in the cryptocurrency market as the co-founder of Ethereum, has recently presented a new blockchain scaling solution called Plasma Cash, which was developed by himself together with Karl Floersch and Dan Robinson. The creator stated that this would be a more scalable version of Plasma, a similar tool which already exists.
The announcement was made live on the Ethereum Community Conference in Paris.
What Is Plasma Cash And How It Works?
Plasma Cash is basically an upgraded version of Plasma, an on-chain scaling solution created by Buterin for the Ethereum network last year. The original Plasma was not a complete success. While it worked for its main function, which was to optimize data and reduce the transaction fees charges for the use of smart contracts and dapps, it had scalability problems.
Buterin believes that the problem of Plasma was that every user had to download and then authenticate each one of the Plasma blocks and this was harmful to the scaling of the project because it required too much effort from the people on the network.
Unlike Plasma, Plasma Cash would make things more simple. The users would only have to pay attention to the specific blocks that contain the coins that they want. To explain the model, Buterin explained during the conference that if a certain user deposits some cryptocurrency on an exchange or third party services in general, a Plasma coin of the same value would be created with a unique ID that could not be split.
Plasma Cash Can Make Ethereum Hack Resistant
One of the applications that most interested the market about Buterin’s Plasma Cash is that it can advance the efforts of the community to make the Ethereum blockchain more hack resistant. As each Plasma coin will have an owner, they are not interchangeable and you cannot take someone else’s coin without the person knowing it.
This could prevent frauds and hacks because, as Buterin said, whenever an exchange created without the necessary safety measures is hacked, nobody would lose any money. The users can run their money through Plasma and keep it always safe.