Scalability is one of the main concerns for the Ethereum blockchain. The current limitations that the network faces in terms of capacity and speed prevent it from being adopted globally on a larger scale.

Ethereum Plasma was proposed by Vitalik Buterin, co-founder of said blockchain, and Joseph Poon. The concept was born in August 2017 as a technique to solve the scalability problems of the Ethereum blockchain. Together with Thaddeus Dryja, Joseph Poon would also be responsible for the conception of the Lightning Network, a solution for the scalability of Bitcoin proposed in 2015. Although Plasma and Lightning Network were in both cases proposed as solutions for the scalability of blockchains, each one has its own mechanisms and particularities.

This article will concisely introduce Ethereum Plasma, but keep in mind that it is not a project, but rather an off-chain scalability technique or a framework for building scalable applications, which can be implemented in different ways. by different research groups or companies.

How does Plasma work?

The main idea of ​​Ethereum Plasma is to establish a framework of side chains that interact and communicate with the main chain as little as possible - in this case, the main chain will be the blockchain of Ethereum. This framework is being designed to operate as a blockchain tree, hierarchically organized in order to erect numerous minor chains on top of the main chain. These minor chains are also known as Plasma chains or child chains.

The Plasma structure is built through the use of smart contracts and Merkle trees, which allow the creation of an unlimited number of child chains - which in turn are, in essence, smaller copies of their relative, the Ethereum blockchain. More chains can be erected on each child chain, thus forming a tree structure.

Basically, each Plasma child chain is a customizable smart contract that can be designed to function in a unique way, satisfying different needs. This means that the chains can coexist and operate independently. Eventually, Plasma will allow companies and businesses to implement scalability solutions in various ways, adapting to their specific context and needs.

Therefore, if Plasma can be successfully developed and deployed on the Ethereum network, the main chain will be less likely to be congested. This is because each child chain will be designed to work in a different way towards specific objectives, which do not necessarily have to be related to those of the main chain. Consequently, child chains will alleviate the overall workload of the main chain.

Fraud evidence

Communication between child chains and the root chain is protected by fraud proofs. This means that the root chain is responsible for maintaining network security and punishing malicious actors.

Each child chain has its own block validation mechanisms and a particular fraud-proof implementation that can be built on different consensus algorithms. The most common are Proof of Work, Proof of Stake and Proof of Authority.

In the event of malicious activity, fraud testing allows users to report which nodes are being dishonest, protect their funds, and abandon the transaction (which involves interaction with the main chain). In other words, fraud proofs are used as a mechanism that allows a Plasma child chain to file a complaint with its parent chain or root chain.

MapReduce

The Plasma whitepaper also presents an interesting application of so-called MapReduce computations. MapReduce is basically a set of functions that are very useful for organizing and computing data from multiple databases.

In the context of Plasma, these databases are blockchains, whose tree structure allows MapReduce to be applied as a way to facilitate the verification of the data that is within the tree of chains, which significantly increases efficiency. of the network.

Mass Output Problem

One of the main reasons for concern regarding Plasma is the Mass Exit problem. It alludes to a scenario in which many users try to abandon their Plasma chain at the same time, flooding the root chain and generating great network congestion. This scenario could be caused by fraudulent activity, network attack, or any other type of critical failure that a Plasma child chain, or group of chains, may present.

Conclusion

Plasma is essentially an off-chain solution that aims to significantly increase the overall performance of the Ethereum network by creating a tree-like structure of numerous smaller chains. These chains will alleviate the workload of the main chain, which will then be able to handle more transactions per second.

A hierarchical model of linked blockchains, as proposed by Plasma, has great potential and is currently being tested by numerous research groups. With proper development, Plasma will most likely increase the efficiency of the Ethereum blockchain and provide a more suitable framework for the deployment of decentralized applications. Furthermore, the idea can also be adapted and implemented by the networks of other cryptocurrencies, as a way to avoid future scalability problems.

Ethereum Plasma is an open source project, whose repository can be found on GitHub. Aside from Ethereum, there are many other cryptocurrencies and GitHub repositories currently working on Plasma. Among them we can mention OmiseGO, Loom Network and FourthStateLabs. For more details and technical information, see the Plasma whitepaper or the LearnPlasma website.

Stay tuned for more educational resources and don't forget to check out the rest of our videos on Binance Academy.