In a presentation live streamed on YouTube from a Paris conference, Vitalik Buterin, one of the creators of Ethereum, talked about Plasma Cash, a scaling solution that will have, as one of its major consequences, the impossibility of your tokens to be stolen from an exchange.

If you're interested in the long story, go ahead and watch the conference on YouTube, I didn't embedded it here as I didn't want to clog the article. It's 2 and a half hours long and it's relatively technical.

In layman terms, Vitalik proposes something similar to pegging. The Plasma protocol will enable to any token to be "paired" with a Plasma token, which can be released only under certain circumstances. Because of that, even if the token changes ownership, the releasing of the tokens still has to be done by the original owner. That will make hacking of an exchange obsolete, because even if you take over an account, if the tokens are on Plasma protocol, then you can't use them.

If you're wondering if this will kinda ruin the privacy layer, since each token will be paired with an identity, then you'd be probably right. But if privacy is a concern, you'd probably be better off just "Plasming" the tokens you keep on exchanges.

Interesting, the concept is relatively similar with what @dan made in Bitshares, where tokens traded there are actually "pegs", backed with real tokens. That's why you trade OPEN.ETH and OPEN.STEEM on OpenLedger, and not ETH or STEEM. But once you want to withdraw from OpenLedger, you get STEEM and ETH. There are a few other differences, quite consistent, but this similarity is relatively striking.

Lately, Vitalik seemed to be on a roll with two major innovations (apart form Casper): the DAICO and this new Plasma thing.

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I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.

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