$XPL #plasma @Plasma

Plasma does not build a blockchain for everything

The first special point in Plasma architecture is:

👉 Plasma is not designed to serve all use cases

Not optimized for:

  1. NFT

  2. GameFi

  3. Meme coin

  4. Complex DeFi, many logics

Instead, Plasma concentrates almost all resources on stablecoins and payments. This directly affects how they design:

  1. Base layer

  2. Transaction processing mechanism

  3. Fees and network throughput

In other words, Plasma is a 'specialized' blockchain, not a 'general-purpose' blockchain, optimized architecture for stablecoin transactions

Stablecoins have a very distinct characteristic compared to other crypto assets:

  1. High transaction volume

  2. Stable value

  3. Low profit margin

  4. Users are very sensitive to fees and delays

Plasma architecture with clear priorities:

  1. Low and stable transaction fees

  2. Fast confirmation

  3. Ability to handle a large volume of small transactions

This makes Plasma suitable for activities such as:

  1. Money transfer

  2. Retail payment

  3. Cross-border payment

Things that Ethereum currently struggles with due to high fees and congestion.