The Security Model: A Bitcoin Sidechain Appro
In a world where bridge hacks and network outages are common, @Plasma has taken a "security-first" approach by anchoring its state to the Bitcoin blockchain. This makes it a high-performance sidechain that inherits a layer of "Bitcoin-level" finality and security, which is crucial for a network handling billions in stablecoin volume.
The $XPL token plays a vital role here as the collateral for the network’s decentralized consensus. Because the network uses "Reward Slashing" rather than "Stake Slashing," it creates a more friendly environment for institutional stakers who want to secure the network without the risk of losing their principal capital due to minor technical errors.
This architectural choice is why many see #plasma as the professional's choice for stablecoin settlement. By combining the speed of a modern L1 with the proven security of the world’s oldest blockchain, the project offers a robust platform for banks, fintechs, and DeFi protocols. As more liquidity flows into the ecosystem, the demand for $XPL to facilitate these secure transactions is expected to rise.
