If you look at past crypto hacks, you see a trend. Bridges are usually what get hit, not the blockchain itself. This is often because many bridges use a Multi-Sig wallet. With these, only a few people, maybe 3 out of 5, have to sign off to move the funds.

I checked out the @Plasma docs to see how they solved this, and it looks like they use something called MPC (Multi Party Computation).

➡️ The Problem with Old Bridges:

In a traditional bridge, a private key exists somewhere. Even if it is encrypted, if a hacker finds that key or compromises the servers holding it, they can steal the funds. This is called the Single Point of Failure.

➡️ The Plasma "MPC" Solution:

Plasma, as the architecture docs say, uses a Threshold Signature Scheme (TSS) driven by Multi Party Computation.

Here's the basic idea: The private key never actually exists in one place.

Instead, the key is generated in shards or fragments. These fragments are distributed across different validator nodes. When a transaction needs to be signed, the nodes compute the signature together mathematically without ever revealing their individual fragment to each other.

➡️ Why, This System Can't Be hacked:

Since the whole key isn't put together on one computer, It is impossible for anyone to hack the system. To hack the system, they would need to hack almost all the validator nodes at the same time at the same second which is nearly impossible. So, it changes security from something like a password thing to a math problem that's pretty much unsolvable.

➡️ What is Trusted Execution Environments (TEE):

The docs also mention that these nodes run inside TEEs (Trusted Execution Environments). This is a hardware level lock. Even the person who owns the server cannot peek inside the memory to see the code running. This makes the system into a top notch level security.

➡️ The Bottom Line:

We usually buy $XPL for the speed or the zero fees. But the real value for institutions is this security model. Big banks won't use a bridge that can be hacked by a phishing email. They need the mathematical certainty of MPC to bridge their assets and that is exactly why #plasma is the future.