Ethereum is the second largest cryptocurrency by market cap and is the second most used
cryptocurrency after Bitcoin, however unlike Bitcoin, Ethereum is used for far more than just transferring a store of value between users. Ethereum recently has seen a huge increase in the number of people using the Ethereum platform, examples of this are ICO launches of projects that will run on the Ethereum blockchain, there has also been an increase in smart contact fees which is clogging up the n
etwork ad causing delays which are now affecting all users.
The problem with the Ethereum blockchain is that because there is so much happening on the
network there is so much data as a result and to hold a copy of the entire ledger would need some
serious amount of data and would not really be feasible for any regular user with an everyday device.
A new solution called Plasma looks to put an end to this
Plasma is currently being developed by Vitalik Buterin (Creator of Ethereum) and Joesph Poon (Co-
author of the Lightning Network). In short Plasma will create something called baby blockchains,
these baby blockchains will all connect to the main blockchain, this is similar in a way to the lightning
network but has been extended to more complex computations and in thecase of Ethereum will
extend to smart contracts.
Although Plasma is still in development phase there has been a lot of positive reception around this
development, this could be down to the fact of the two people who are leading the project or simply
because it is recognised as the best solution so far to the Ethereum issues
It is not without its criticisms but with Vitalik Buterin and Joseph Poon working on the idea it is
definitely something to keep an eye on.
Ethereum saw its highest ever day of trading yesterday… Could it be linked to speculation about
Plasma been a success?