Most Layer 1 blockchains are made to do lots of things at first. Then they are used for money transfers. Plasma does things the way around. It begins with a question that not many people have thought about: what would a blockchain be like if it was made just for stablecoin settlement, from the very beginning? Layer 1 blockchains and stablecoin settlement are the focus of Plasma.
In a world where lots of people are making claims and trying to simplify things Plasma is doing its own thing. It is not trying to be everything to every person. Plasma is focusing on something that really matters and that we can actually see working. Using stablecoins to make payments around the world. Plasma is, about stablecoins and how they can be used for global payments.
Stablecoins Are No Longer an Edge Case
Stablecoins are really popular in the world of crypto now. People in places where the cost of living is going up a lot use Stablecoins like dollars.
In some countries that are still growing Stablecoins help people make payments across borders.
In the financial institutions Stablecoins are kind of like cash that can be programmed to do things, which is really useful, for institutional finance and Stablecoins.
The thing is, the blockchains that handle these transactions were not made with stablecoins, in mind. People using them still have to pay fees that can change a lot. When you send money it can still get slowed down by things happening on the network that have nothing to do with you. And the blockchain is not always able to guarantee that your money will arrive safely it really depends on what's happening on the network at that time.
Plasma thinks of stablecoins in a way. To Plasma stablecoins are not just something added on to the system. They are the reason the system was created in the first place. Plasma sees stablecoins, as the foundation of the thing.
A Layer 1 Built for Settlement, Not Speculation
Plasma is a type of blockchain that is made to work on the level, which is called Layer 1. This blockchain is specifically designed to help with the settlement of stablecoins. The fact that it is made for settlement affects all of the decisions that are made about how Plasma is built. Plasma is really, about stablecoin settlement.
When it comes to Plasma the focus is not, on making it work with lots of things or trying out new ideas. Plasma is actually designed to be fast and work in a way that's easy to understand. It is also neutral which means it does not favor one person or group over another. These things are really important when people are making payments. They are not as important when people are buying and selling things in hopes of making money. Plasma cares about speed and being fair which is what matters when people are paying for things.
The main focus of this thing is on three technical areas. These technical areas are the base of what we're doing. We call these areas the core pillars. The focus is really, on these three technical pillars.
Full EVM Compatibility Without the Trade-Offs
Plasma is totally compatible with Ethereum because of Reth. This means that developers can use the contracts they already have without making any changes. They do not have to rewrite the logic or the tools they use. This makes things a lot easier for people who are building things and for institutions. It helps keep the community of developers that Ethereum has strong. At the time it gets rid of the problems that slow down settlements in real time. Plasma is compatible with Ethereum, through Reth so developers can just use their existing Ethereum contracts.
People often think of EVM compatibility as something you just need to have.. For Plasma it is a way to connect things that really helps. This means that people who make applications can work fast without giving up what they already know about developing or worrying about security. EVM compatibility is important, for Plasma because it lets stablecoin applications move quickly.
Sub-Second Finality as a Design Requirement
Settlement networks are all about being final. They need to be certain that things are really done. If you have to wait a few minutes to make sure something is confirmed that is okay when you are trading with DeFi.. When you are buying things from a store or when big institutions are moving money around waiting is not okay. Settlement networks like this need to be fast and certain like when you use a credit card to buy something and you know it is paid for away. Settlement networks are important for things, like payments and institutional clearing.
Plasma has come up with something called PlasmaBFT. It is a way for the system to agree on things. This makes sure that payments are finished in under a second.
This is not just about how things the system can handle. It is about how it feels to use it. When you make a payment it feels like it happens away.
When you transfer money it feels like it is going to work for sure. The way money is settled is like a road or a bridge it is something you can count on not something that might or might not work. PlasmaBFT makes Plasma work, in a way that feels solid and real.
For people who sell things like merchants and for companies that handle payments and for platforms it is really important to know the difference. When something is final in than one second it makes blockchain a lot more useful. It is no longer something cool to use behind the scenes. Instead blockchain can actually replace the ways of doing things like the systems that have been used for a long time. This makes blockchain an option, for merchants and payment processors and financial platforms.
Stablecoin-Centric Economics
One thing that really stands out about Plasma is the way it deals with transaction fees. Plasma does things a bit differently when it comes to transaction fees. The way Plasma handles transaction fees is really what makes it unique.
Plasma is a way to make things easier for users. It does not make users deal with an asset that can be very unstable. Plasma lets people send USDT without using gas. It also changes the way gas works so that it is based on stablecoins. People can pay fees with stablecoins, which's what users normally expect to do. This makes the cost of things line up with what users think it should be. Plasma makes it so that users can pay fees directly with stablecoins, like USDT.
This is really important. For people who buy things in places where a lot of people are doing it big changes, in price are not something to think about. They are a problem. For companies not knowing how much it will cost them is a big issue when it comes to following the rules and keeping track of money.
Plasma does something cool. It links the money side of things to stablecoins. This means Plasma gets rid of a lot of stuff that people have to think about and deal with when they are working with transactions. Plasma removes a group of problems that come with transactions making things easier, for people who use it. This is all because Plasma is connected to stablecoins.
Bitcoin-Anchored Security and Neutrality
Security is not just about codes. It is also about being trustworthy. Plasma makes its security system based on Bitcoin because Bitcoin has a reputation for being fair and not controlling what people can or cannot do. Bitcoin has been around for a time and people trust it. That is why Plasma uses Bitcoin as a foundation, for its security system to make sure it is also seen as fair and trustworthy just like Bitcoin.
This Plasma thing is not trying to be better than Bitcoin. It just wants to have the one thing that makes Bitcoin really valuable: the trust people have in it because it has been around for a time. By using the security ideas as Bitcoin Plasma is saying it wants to be stable for a long time not just good for a little while. Plasma is doing this to show that it is committed to being safe and trustworthy, like Bitcoin.
For institutions and cross-border payment systems being neutral is really important. A settlement layer needs to be safe, from all kinds of problems not just when someone tries to attack it but from being controlled by others whether it is because of politics, money or technology. The settlement layer must be able to resist capture whether that is because of reasons economic reasons or technical reasons to make sure that cross-border payment systems and institutions can work properly.
A Network for Both Retail and Institutions
The people who use Plasma are from two different groups that do not usually mix together easily. Plasmas target users are people, from these two worlds.
On one side there are people who use things like stablecoins every day in places where a lot of people use them. These retail users need things to be easy to understand and use. They also want to be able to send money and make payments quickly.. They want to know exactly how much things will cost them. They use stablecoins for things like saving money sending money to people and buying things they need every day. Stablecoins are very important, for these users.
On the side there are institutions, like payment providers and fintech platforms and financial intermediaries. These institutions need a system that's friendly when it comes to following rules. They also need to be able to settle payments.. They need to be reliable even when they are dealing with a lot of people. The payment providers and fintech platforms and financial intermediaries require all of this to work well.
Plasma is finding a way to work with groups by focusing on stablecoin settlement. This is because it has things that people like when they buy things. It does not cost much to move money and the transaction is finished right away. These same things are also good for companies that want to be able to control how money is moved around. Plasma is good for people who buy things every day and, for companies that want to move money around in a special way.
Why Plasma’s Focus Matters
The crypto industry usually thinks that new ideas are about having a lot of things. They want features and more parts to their systems. They want to tell stories about what they do.. Plasma does things differently. Plasma thinks that is not the way to do things. Plasma is different because it does not try to add a lot of things like the crypto industry does. The crypto industry and Plasma have ideas, about what it means to be innovative. Plasma is a part of the crypto industry.
The main idea is that infrastructure becomes really good when it does one thing and does it well. Stablecoins are already showing how useful they are, around the world. What stablecoins need now is infrastructure that is made for them so it can help stablecoins work even better.
Plasma is not trying to take the place of every Layer 1. It does not say it is the execution layer, for everything. Plasma wants to be something strong: a network that helps people settle things easily where stablecoins work like the digital money they should be. Plasma is focusing on being a settlement network, where people can use stablecoins like they use cash.
In a market that is really being shaped by how people use things not just by what people think might happen being restrained might actually be the best thing, about it. The market is changing because of real-world usage so this restraint may turn out to be the feature of the market.
