Plasma, a once-prominent Ethereum layer-2 scaling solution, has been recommended for reconsideration by teams currently working on zero-knowledge (ZK) Ethereum Virtual Machines (EVMs), by none other than Ethereum co-founder Vitalik Buterin.
First invented in 2017, Plasma is designed to divert data and computation, including processes such as deposits, withdrawals, and Merkle roots, to an off-chain environment. Its initial appeal lay in its potential for scalability and cost-effectiveness. However, in recent years, it has faded in prominence, largely replaced by more efficient and secure solutions such as optimistic and ZK-rollups.
Buterin recently expressed his views on the revitalization of Plasma in a post on Twitter, where he emphasized that while rollups remain the “gold standard,” Plasma should not be forgotten as it represents an “underrated design space” that can offer significant security upgrades for chains that might otherwise rely on validiums. Validiums, like Plasma, move data and computation off-chain but implement ZK-proofs to validate transactions. In contrast, Plasma uses fraud proofs, which are comparatively slower.
However, Buterin argued that advancements in ZK-proofs, particularly the introduction of validity proofs, are addressing the past limitations of Plasma, making it more viable as a scaling solution. He also pointed out that while adapting Plasma for applications beyond payments was previously challenging, the rise of ZK-proofs has made it more feasible to explore additional use cases for Plasma.
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Buterin’s support for the potential revitalization of Plasma is part of his larger vision for the evolution of the Ethereum layer-2 ecosystem, which he expects to continue to diversify with a range of technological approaches.
There have been several iterations of Plasma, including Minimal Viable Plasma, Plasma Cash, and Plasma Cashflow. Notably, Ethereum layer-2 scaling-focused firm Polygon Labs implemented Plasma in 2019, though it has since incorporated several other solutions. The shift away from Plasma was also spurred by Plasma Group, a nonprofit research firm that announced its decision to cease work on Ethereum-based scalability in January 2020.
Despite its recent decline in popularity, the potential resurgence of Plasma has already made waves in the cryptocurrency market. Following Buterin’s post, the price of OMG, the token of OMG Network, which utilizes Plasma, surged significantly before subsequently falling. This reaction underscores the potential impact of a renewed interest in Plasma.
In addition to supporting a revival of Plasma, Buterin’s remarks highlight a broader trend in the cryptocurrency space, where existing solutions are being revisited and re-evaluated in light of technological advancements and changing market dynamics.
The journey of Plasma from its rise to prominence to its subsequent decline and potential revival serves as a testament to the dynamic nature of the cryptocurrency landscape. As new technological developments continue to reshape the industry, it is likely that older solutions like Plasma will continue to evolve and find relevance in the rapidly changing digital economy.
