Plasma is a Layer-1 blockchain that has been created to support the economy of stablecoins in the large scale. Plasma also is not competitive like a general-purpose chain, but where crypto already excels, i.e. what can be fast, cheap, and trustworthy: value transmission. The network can provide sub-second finality by using Reth compatible with PlasmaBFT consensus and allows making stablecoin payments feel instant and practical by using them in the real-world.
The most striking thing about Plasma is that it is based on a stablecoin. Such services as transferring USDT gaslessly and making payment for transaction fees directly in the form of stablecoins eliminate friction when it comes to both personal users and institutions. Plasma would be particularly applicable in the areas where stablecoins already are digital cash and settlement layers.
At the centre of the vision of Plasma is liquidity. One of the largest on-chain lending markets in the world is now hosted by the network and is a good indicator of the real demand and efficiency of capital. As Bitcoin-secured neutrality and censorship resistance improves as security, Plasma as a financial infrastructure can be considered to be aimed at long-term functionality. It is not the process of adapting stablecoins to blockchain constraints but, rather, the process of restructuring blockchain to support stablecoins as the foundations of the modern financial system.
