In the crypto space, I've seen too many public chains claiming to 'disrupt the industry', but most are either trapped in technical parameters and self-indulgence or just circulating within small circles of the crypto world. It wasn't until I delved into @Plasma that I realized this thing is not simply 'another new chain'—its true ambition is to span traditional finance, cryptocurrency, and the stock market, tackling the core 'settlement' links to completely break the efficiency bottlenecks that intermediary institutions have been holding back for decades.
First, let's talk about the pain points in traditional finance, which many people may not have experienced directly. Recently, I helped a friend process a cross-border remittance, transferring dollars from China to Europe. Not only did it take 3 days to arrive, but the fees deducted nearly 200 dollars, and there were 'hidden charges' from the intermediary bank. This is not an isolated case; the SWIFT system, which global cross-border clearing relies on, is essentially a 'mediator alliance'. With each additional link, there is an extra layer of cost, and it also carries the risks of fund freezing and message loss. The most brilliant aspect of Plasma is that it replaces these 'manual reconciliations and layers of endorsements' with algorithmic automation. Its three-layer architecture looks complex, but it actually solves three problems: the verification layer allows for second-level transaction confirmations, the liquidity layer ensures money can be used anytime, and the compliance layer embeds legal rules into the protocol. In other words, in the future, bank transfers may no longer take several days, and high fees may not be required. Even ordinary people may directly interface with the global settlement network on their phones, which is a breakthrough for those without bank accounts, effectively opening up the financial 'meridians'.
Looking at the cryptocurrency world, stablecoins were originally the 'hard currency of the crypto world,' but they have been struggling. Transferring USDT on Ethereum can see Gas fees soar to dozens of dollars during peak times, even higher than the transfer amount; switching to another public chain raises security concerns, fearing that project teams might run away. Plasma has captured this pain point and created a 'dedicated runway for stablecoins.' It supports zero-fee transfers of stablecoins and allows paying Gas fees directly with USDT, eliminating the need to buy native tokens, which lowers the threshold for ordinary users to the minimum. I already have many friends in cross-border e-commerce who have started using Plasma to transfer funds, not only is it fast, but it also saves a lot on fees. Moreover, it has integrated DeFi protocols like Aave and Curve, meaning that the stablecoins you hold can be transferred at any time and also directly used for investment to earn returns, without having to bounce between different platforms. In the first week after launch, the TVL surged to $8.7 billion, which is not without reason—the cryptocurrency world has never lacked public chains; it lacks infrastructure that can truly solve practical problems.
What is most surprising is its impact on the stock market. Now when buying stocks, the A-shares settle on T+1 and the US stocks on T+2, meaning when you sell stocks, you have to wait one or two days for the money to arrive, during which time this money is effectively 'frozen' and cannot be used. This is actually a problem of the efficiency of centralized clearinghouses, which need to verify the accounts and funds of both parties involved in the transaction while also preventing default risks. However, Plasma's 'atomic settlement' can achieve 'settlement upon transaction,' meaning that at the moment the transaction is completed, the money and stocks are delivered without waiting. If this were implemented in the stock market, it could not only eliminate the price volatility risk caused by delays but also release trillions of dollars in idle capital. For example, the daily trading volume of A-shares is several hundred billion; if this money could flow back into the market instantly, it would be a huge boost for both investors and market liquidity. Interestingly, its cross-chain functionality allows for stocks to be tokenized and connected with stablecoins and DeFi protocols—meaning in the future, the stocks you buy could be traded on exchanges and directly used for collateral loans, or even split into small amounts to be sold to global investors, potentially rewriting the rules of the stock market.
Of course, Plasma also has its shortcomings. Previously, the TVL dropped from $14 billion to $2.1 billion, exposing issues such as the early verification nodes being too centralized and the ecological incentives not being sustainable enough. But its core logic stands: whether in finance, cryptocurrency, or stocks, they are essentially businesses of 'value transfer,' and the settlement process is the 'capillary' of this business. Now, the capillaries have been blocked by intermediaries for too long, and Plasma uses technical means to unblock them.
It has now partnered with Chainlink's CCIP protocol, able to connect with over 60 public chains; payment giants in Africa have also integrated it into local settlement networks, allowing local users to transfer using stablecoins. These practical scenarios are far more convincing than simple technical parameters. Perhaps it won't be long before we no longer have to wait several days for transfers, no longer pay high Gas fees for stablecoin transfers, and can receive stock sales instantly—behind all this, it may all be tied to the settlement network that Plasma is building. It is not a 'savior,' but it is indeed quietly changing the rules of the game in three markets, and such changes based on fundamental logic are often the most powerful.
