Vitalik Buterin, co-founder of Ethereum, presented a Blockchain scaling solution called Plasma Cash, an even “more scalable” version of an existing solution called Plasma, during a talk live streamed on YouTube at the Ethereum Community Conference in Paris on Friday, March 9.
Plasma Cash was developed by Buterin and developers Dan Robinson and Karl Floersch.
Plasma itself is an on-chain scaling solution for Blockchains, introduced by Buterin and Lightning Network creator Joseph Poon in August 2017. Plasma works by optimizing data that is passed onto the root Blockchain, reducing the transaction fees for smart contracts and decentralized applications (DApps).
The problems with the scalability of Plasma, according to Buterin, is that every user must download and authenticate each Plasma block, which prevents exponential scaling.
To explain the Plasma Cash model, Buterin gives the example that if a user deposits some amount of ether to a crypto exchange or any third party service, a Plasma coin would be created with the same value of ether and a unique ID that cannot be merged or split.
In contrast with Plasma, Plasma Cash would only require users to pay attention to the blocks that contain coins they want to keep track of:
“A user actually only needs to verify the availability and correctness of the Plasma chain only […] at the specific index of the coin, of any coins that they own and any coins that they care about.”