Plasma in the cryptocurrency world refers to a layer-2 scaling solution designed to enhance the speed and efficiency of blockchain networks, particularly Ethereum.
It operates by creating "child chains" that process transactions off the main blockchain, bundling them into a single proof that is then submitted to the mainnet. This significantly reduces the load on the main chain, enabling higher transaction throughput and lower fees.
While complex in its implementation, Plasma offers a promising path toward scalable decentralized applications, allowing for faster and more cost-effective interactions within the crypto ecosystem. Its development continues to be a key focus for projects aiming to overcome blockchain's inherent scalability challenges.