The inventor of ethereum, Vitalik Buterin, eth.limo/general/2023/11/14/neoplasma.html” target=”_blank” rel=”noopener nofollow”>published an article that discusses the implementation of a new scalability solution. According to a document published on his blog, several benefits could be obtained by introducing “Plasma”, a scalability solution invented 6 years ago, in the early years of eth.
Exploring the potential of plasma in the ethereum ecosystem
According to the document, Plasma, which enables off-chain data and computing with significant scalability potential, faced challenges that led it to be overshadowed by rollups.
However, the integration of validity proofs, or zero-knowledge succinct and non-interactive knowledge argument (ZK-SNARK), gives Plasma a second look, particularly to address client-side data storage challenges and extend its usefulness beyond simple paid applications.
Vitalik Buterin believes that the technology has finally been developed to implement this scalability solution. In the post, the ethereum inventor explained possible use cases for the solution, including its potential to increase the security of the blockchain while preserving user privacy.
As seen in the image below, Plasma Cash, a version of Plasma, illustrates how the system works by treating each coin as a separate non-fungible token (nft) with its unique history. The operator-led Plasma chain requires close monitoring of users to prevent operator misconduct, such as publishing invalid or unavailable blocks.
In cases of irregularities, users must exit immediately, providing Merkle with proof of the legitimacy of their currency. The interplay of checks and balances ensures the security of assets within the Plasma ecosystem. Buterin wrote:
Plasma allows us to completely bypass the issue of data availability, greatly reducing transaction fees. Plasma can be an important security improvement for chains that would otherwise be validiums. The fact that the ZK-EVMs are finally coming to fruition this year makes it an excellent opportunity to re-explore this design space (…).
However, applying Plasma to more commonly used fungible tokens such as eth and USDC presents challenges, the ethereum inventor said. These include invalid block creation, issues with poorly created transactions, and others.
Developers have implemented solutions for some of these issues, such as grouping adjacent coins for optimized transfers or using Plasma Cashflow, but issues such as high exit gas costs remain. Creative defragmentation protocols and the UTXO (Unspent Transaction Output) model provide respite, but do not completely solve these problems.
The obstacles of implementing plasma in the EVM
Implementing Plasma to support the ethereum Virtual Machine (EVM) presents additional hurdles. The EVM operates under a complex framework.
This complexity is rooted in the EVM’s vast network of dependencies, which complicates the process of safely exiting the system (known as “exit games”) and validates the need for robust testing mechanisms (such as validity tests). Buterin explained.
However, by verifying the authenticity of the transactions, these tests emerge as a “beacon of hope.” They can directly confirm the legitimacy of each Plasma block, a type of scaling solution, on the blockchain.
According to the publication, this advancement could significantly reduce the burden on users, making transactions smoother and even allowing instant withdrawals under normal circumstances.
One promising development is the creation of parallel UTXO (Unspent Transaction Output) graphs for ethereum‘s native currency, eth, and its various tokens. This approach involves creating a system that runs alongside the EVM, where transactions are simpler and easier.
By using SNARK to connect this new system and the existing EVM state, many of the complexities of the EVM could be avoided. This method promises a more secure and user-friendly environment within the Plasma framework.
However, it is important to note that despite these advances, complete security guarantees remain a challenge, as Buterin noted, especially for parts of the blockchain that “do not have a clearly defined owner.”
While rollups remain the preferred option due to their high security and ease of use for developers, the potential of Plasma and technologies like ZK-EVM (Zero-Knowledge ethereum Virtual Machines) cannot be ignored.
As ethereum continues to evolve, reviewing and refining Plasma could offer key solutions to achieving a more efficient, secure and scalable blockchain infrastructure, Buterin believes.
With potential benefits like reduced transaction fees and improved security, especially for chains that would otherwise rely on less secure systems, Plasma’s role in the ethereum scalability story is worth watching.
At the time of writing, ethereum is trading at $2,050 with a 10% gain over the past week.
Cover image from Unsplash, chart from Tradingview
