Ethereum co-founder Vitalik Buterin has suggested a reevaluation of Plasma, a once-prominent layer-2 scaling solution for Ethereum, particularly in the context of emerging zero-knowledge (ZK) Ethereum Virtual Machines (EVMs).
Introduced in 2017, Plasma functions by redirecting data and computation (excluding deposits, withdrawals, and Merkle roots) to an off-chain environment. However, it gradually lost prominence to optimistic and ZK-rollups due to their cost-effective client-side data storage and unmatched security properties, according to Buterin’s Nov. 14 Twitter post.
While acknowledging rollups as the “gold standard,” Buterin advocates for revisiting Plasma, describing it as an “underrated design space” that holds potential for significant security enhancements, particularly for chains that would otherwise adopt validiums.
Validiums, like Plasma, move data and computation off-chain but utilize ZK-proofs for transaction validation. Plasma, in contrast, relies on fraud proofs, which are comparatively slower. Buterin believes that advancements in ZK-proofs, including validity proofs, can address the historical limitations of Plasma, making it a more viable scaling solution.
Recognizing that Plasma faced challenges when extended beyond payment applications before ZK-proofs gained prominence, Buterin anticipates the Ethereum layer-2 ecosystem evolving with diverse technological approaches.
Various iterations of Plasma, such as Minimal Viable Plasma, Plasma Cash, and Plasma Cashflow, have emerged over time. Polygon Labs, a firm focused on Ethereum layer-2 scaling, implemented Plasma in 2019 but has since incorporated other solutions.
The decline of Plasma’s popularity was partly attributed to Plasma Group, a nonprofit research firm, announcing the cessation of its work on Ethereum-based scalability in January 2020.
Following Buterin’s post, the token of OMG Network, which utilizes Plasma, experienced a notable spike of 28.6% to $0.78 in a three-hour window, as reported by CoinGecko. However, it subsequently fell by 14.3% to $0.67. The market response underscores the potential impact of influential figures in the cryptocurrency space on specific projects.