#plasma $XPL

To truly understand Plasma, we need to look under the hood at its technical design. As a Layer 1, Plasma is its own independent blockchain, not a solution built on top of another network like Ethereum. This sovereignty allows it to optimize every aspect of its protocol—from the consensus mechanism to the transaction processing—for the specific needs of stablecoins.

The core of its operation revolves around providing a framework for developers and institutions to launch their own fully-collateralized and algorithmically-backed stablecoins. The Plasma blockchain is designed to ensure high throughput and low transaction fees, which are essential for payments and remittances—key use cases for stablecoins. It aims to create an interoperable ecosystem where different stablecoins can be exchanged seamlessly, removing the friction that currently exists in both traditional finance and the fragmented crypto market. The native token, PLASMA, is integral to this ecosystem, serving critical functions to maintain network security and facilitate operations.