With more people beginning to adopt cryptocurrencies and more Initial Coin Offerings springing up, most of these operating on the Ethereum blockchain, the network is definitely getting pretty crowded. Scaling has been a major problem for Ethereum and the introduction of the Raiden Network, and works on the Liquidity.Network, has proven that the Ethereum team has been working on ways to ensure maximum efficiency.
Last Friday at the ECC in Paris, Vitamin Buterin announced that the team had come up with a new solution to their scaling problem. Plasma Cash which was first propsosed seven months ago in August of 2017 has been approved and will be introduced somewhere next year to help solve the issues of scaling for the network.
The new technology, an upgrade to the original Plasma which was co-developed with Joseph Poon of Bitcoin’s Lightning network, will enable Ethereum to represent its decentralised applications (financial) with reinforced smart contracts. It will also utilise the proof-of-stake verification method that Ethereum has been touting for quite a while now.
Bringing more Security to Ethereum Users; Owner-Coin Relation
Having being designed to help Ethereum to manage very large sets of data, Plasma has done a great job so far. However, Ethereum is still not able to handle transaction speeds like that of Visa for a couple of reasons, considering that it wants to be its competitor.
The upgrade will still operate the smart contracts of Ethereum but this time around it will only bring transactions to the main Ethereum blockchain when they are complete. The optimisation that Plasma performs on these transactions helps reducing both power consumption and time which also reduces the fees involved per each transaction. But all of these will still not make exponential scaling available – for now at least.This newer version will use the value of Ether, Ethereum’s cryptocurrency to create coins that have non-identical IDs.
With the coins being given to specific users, increased security is somewhat assured. One reason we have hackers being able to steal coins from many exchanges is because these coins barely have any extra security aside the unknown codes that are give them on the blockchain.
What Plasma Cash does now is to make it possible to identify each coin to a user, thus, any form of theft or coin loss can only be done by the user of that coin and no one else. This development goes a long way to ensure top security on the Ethereum blockchain. Buterin reemphasised that point when he was speaking at the Conference:
“Regardless of what happens in the exchange, users can run their money through the Plasma exit procedure and get their money out,”
The announcement of Plasma Cash comes at a time when many scaling solutions are being introduced to ease transactions on blockchain networks. Ethereum users must certainly be happy to hear this, however, with the price of Ether fast declining what do you think this news could mean for the Ethereum community and the cryptocurrency itself. Let us know your views and thoughts via our Telegram platform.
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