Steemit Crypto Academy Contest / S14W1 - Plasma Chains

Assalamualaikum everyone!

Welcome to the post. Hopefully, all of you will be doing well and enjoying the time with the grace and blessings of Almighty Allah. Today, I'm here to be a part of the week 1 contest in our beloved SteemitCryptoAcademy. The topic of discussion for this week is Plasma Chains. So, let's start the discussion without any wastage of time.

What is a plasma chain in the context of blockchain? And how do plasma chains help solve blockchain scalability issues?

A plasma chain is actually a sort of sidechain that is used to improve a blockchain's scalability. Sidechains are basically autonomous blockchains that are linked to the main blockchain. This enables them to handle transactions off-chain, potentially reducing the huge rush of transactions on the main blockchain.

Plasma chains are a form of sidechain that employs a technique known as Optimistic Fraud Proofs. This means that until shown otherwise, transactions are assumed to be genuine. As a result, plasma chains can process transactions swiftly and cheaply and this thing contributes a lot to improve the scalability of the main chain.

The Plasma Chains take transactions off the main blockchain. This can assist in decreasing the load of transactions on the main blockchain and speed up transactions in this way. They have the ability to handle transactions very swiftly. Because they use Optimistic Fraud Proofs, plasma chains can execute transactions considerably faster than the main blockchain.

They can process transactions at a low cost. Because plasma chains do not need to store all transaction data on the main blockchain, they can process transactions considerably more cheaply than the main blockchain. In this way, the users are attracted a lot because of the low transaction fees.

What is the main difference between a plasma chain and the main blockchain?

The principal blockchain of a cryptocurrency network is the main blockchain, also known as the root chain or layer 1 blockchain. It is the network's backbone, responsible for maintaining the general state of the system and assuring transaction security and immutability. Due to the large volume of transactions that must be processed, the main blockchain is generally slow and crowded.

A plasma chain is a form of layer 2 or sidechain blockchain that is linked to the main blockchain. It is a side chain or off-chain solution that aids in network scaling by processing transactions off-chain, hence lowering the burden on the main blockchain. Because they are linked to the main blockchain via a smart contract, plasma chains have its security.

Moving Towards the Key Differences...

First and the most important thing is that the Transactions are processed off-chain via plasma chains, while they are processed on-chain by the main blockchain. This off-chain processing minimizes the load on the main blockchain and speeds up transactions validation processes.

Moreover, Plasma chains are meant to be highly scalable, allowing them to handle a huge amount of transactions while maintaining security and decentralization. This scalability is achieved by doing transaction processing to side chains.

Another important thing to notice here is that through a fraud detection and dispute resolution system, plasma chains have the security of the main blockchain. This approach enables validators to filter fraudulent transactions and ensure the plasma chain's integrity.

Talking about the results after the complete processing of the transactions, plasma chain transactions are not very final until they are acknowledged and finalized by the main blockchain. This ensures that the network's overall state remains consistent and safe.

Are there any concrete examples of applications or projects using plasma chains successfully?

Yes, there are various real examples of plasma chain applications and projects that have been effective so far. Here are some important examples:

• OmiseGo (OMG)

It is a decentralized exchange and payment network that uses plasma chains to facilitate very fast and low-cost transactions. It has successfully utilized plasma chains to off-chain execute transactions, dramatically lowering transaction fees and increasing user experience.

• Loom Network:

Loom Network is a platform that allows developers to create dApps on its plasma chains. Its capacity to provide very fast, scalable, and cost-effective gaming experiences has made it popular among game creators.

• Matic Network:

Another platform that employs plasma chains to scale Ethereum is Matic Network. It has collaborated with a number of DeFi projects to provide off-chain transaction processing, allowing them to handle bigger transaction volumes while reducing burden of transactions on the Ethereum mainnet.

• dYdX:

dYdX is another decentralized exchange with plasma chains implementation to increase transaction throughput. It has successfully utilized plasma chains to execute margin trades and other complex transactions off-chain, thereby increasing the exchange overall performance as well.

• Gnosis

It is is a prediction market platform that uses plasma chains to create scalable, low-cost prediction markets. It has successfully deployed plasma chains to off-chain process prediction market outcomes, lowering transaction fees and increasing user participation.

How could the potential integration of plasma chains on the Steem Blockchain influence the speed of transactions and associated costs?

Integrating plasma chains onto the Steem Blockchain has the potential to greatly increase transaction speed while decreasing associated expenses.

How Increase Transactions Speed...?

By transferring transaction processing from the main Steem blockchain to these plasma chains, plasma chains can significantly improve transaction speed. This off-chain processing considerably reduces the load on the main blockchain, letting it to focus on other vital activities such as network maintenance and security.

As compared to the main blockchain, plasma chains use a fraud detection and dispute resolution process that allows for faster block confirmation times. This technique allows transactions to be validated and finalized more quickly, minimizing user wait time and thus it improves the scalability.

Moreover, Plasma chains can greatly increase transaction throughput by processing transactions off-chain, allowing the Steem Blockchain to handle a higher volume of transactions per second. This increased throughput allows for increased user activity while preventing network load as well.

How Transaction Fees is Reduced...?

Plasma chains may potentially result in lower transaction fees, making Steem more accessible to users. There are some factors which can act to lower the transactions costs.

Because of their off-chain processing efficiency, plasma chains often have lower transaction fees than the main blockchain. This can encourage users to initiate more frequent and smaller transactions, hence increasing network traffic and overall growth.

Scalable fee structures that react to network load can be implemented by plasma chains. Transactions Fees may increase during periods of high demand to ensure network stability and prevent spam as well. While, fees may reduce during periods of low demand to attract users more and more.

Are there any plans or discussions within the Steem Blockchain community regarding the exploration or implementation of plasma chains?

Well. According to my own knowledge and research, there is no a particular roadmap or discussion within the team of the Steem blockchain to implement the plasma chains at this time. But, as I have researched a bit about it I realized that there were some times in the past when the Steem blockchain community decided to do so.

In 2018, the Steem community decide to initiate a program to the name "Steem Plasma" proposal, which described a potential framework for adding plasma chains into the Steem Blockchain architecture. This proposal initiated the debate among developers and team of the community about the feasibility and potential impact of such an integration.

Moreover, in 2022, the Steem community addressed the possibility of using plasma chains to improve the performance of Steem-based dApps. These conversations focused on the the potential for plasma chains to address scalability difficulties and enhance transaction speed, particularly for high-volume dApps.

However, there is no particular implementation of roadmap that has been exposed by the Steem team at this time. But, it is obvious that the integration of such protocols will surely increase the scalability of the main Steem chain and hence attract more and more investors and users on the Steem blockchain.

Conclusions

Plasma chains are a viable answer to the scalability issues that primary blockchains are experiencing. They provide a safe and effective mechanism to perform off-chain transactions, increasing transaction speed and lowering costs. Plasma chain integration on the Steem Blockchain might greatly improve its performance, making it more scalable, cost-effective, and attracting to users and developers.

I would like to invite my friends @abdullahw2, @sahmie and @aaliarubab to be a part of this amazing contest.