How does Plasma help Ethereum scale?
Plasma is a layer 2 scaling solution that helps Ethereum handle more transactions without overloading the main chain. It creates 'child chains' that operate in parallel with Ethereum.
Transactions are conducted on the Plasma chain instead of directly on Ethereum. Only aggregated data and cryptographic proofs (Merkle root) are sent back to the main chain.
As a result, Plasma significantly reduces gas costs and increases transaction throughput. Ethereum still plays the role of the security layer and final arbiter in case of disputes.
If the Plasma chain encounters issues, users can 'exit' back to Ethereum to safeguard their assets. This mechanism helps scale while maintaining decentralization and safety.
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