Development on Tezos has just expanded beyond its root blockchain.
Development team Cryptoeconomics Lab has won a grant from Tezos Foundation to develop a layer-2 framework for Tezos, similarly to what Lightning Network is currently for Bitcoin.
Cryptoeconomics Lab is a blockchain organization based in Tokyo that specializes in Plasma framework implementations.
What is Plasma?
Plasma is an L2 or a sidechain project initially developed for Ethereum and proposed as a solution to the scalability problem in August of 2017. Joseph Poon was one of the authors’ whitepaper, alongside Ethereum founder Vitalik Buterin. Poon also wrote Bitcoin’s scaling solution, Lightning Network with Thaddeus Dryja in early 2016, which is another L2 basic framework.
Compared to Bitcoin’s Lightning Network though, Plasma targets blockchains that have fully smart contract capabilities. Lightning is a mere payment layer at its core.
The framework could solve the potential scalability problems Tezos might encounter on its own road to mainstream adoption, much like Ethereum that suffered many inconveniences during the 2017 Initial Coin Offering (ICO) hype and Crypto Kitties era.
Instead of bringing all that traffic to the Tezos blockchain, Plasma promises to create the foundation for sidechains or ‘child chains’. Therefore, the main traffic bulk of blockchain games like Crypto Kitties would actually use a child chain with Plasma.
This potential chain would be linked to the parent chain or ‘root chain’ as it is commonly known, which is Tezos mainnet. The child chain will rely on the mainnet’s security and decentralized nature.
Depending on adoption and usage, Tezos could host countless child chains, each serving a different purpose and each ready to offer very low fees and instant finality.
Potential Uses For Tezos
According to a recent Cryptoeconomics Lab Medium blog, the future Plasma implementation on Tezos could mean no fees for the end-users, unlimited scaling (transactions stay off-chain, on L2, until otherwise stated), and greater speeds for any type of blockchain operations (usually 2 to 6 minutes per transaction or 300 ms in special cases).
Moreover, a Tezos user will be able to create & execute smart contracts off the main chain and even conduct voting without relying exclusively on the Tezos blockchain.
Interestingly enough, a stablecoin project on Tezos such as USDtez could actually conduct its business using Plasma. Developers and users alike could also be able to use decentralized environments with different applications like the security solution Zk-S[NT]ARK.
The first step though for Cryptoeconomics Lab is the release of an Android prototype wallet that should be released in the coming days. The Plasma framework integration is scheduled for the beginning of next year.
Be sure to check our TopNewCrypto.com website for more updates on the project.
Will Plasma framework implementation on Tezos be a success? Is it a step in the right direction? Let us know in the comment section below!
Images courtesy of Pixnio.com & Cryptoeconomicslab.com.