Another second-layer scaling method for Ethereum is Plasma. It is envisaged that it will follow state channels as the second fully deployed scaling solution on the mainnet of Ethereum. The term “Plasma” refers to an architecture that enables the development of subsidiary blockchains that rely on the main Ethereum chain for authentication and dispute resolution.
Child chains in Plasma can be created to satisfy the needs of particular use cases, particularly those that are not currently practical on Ethereum. Plasma is significantly more suited to decentralized apps that demand high transaction fees from users.
The Plasma framework allows building an infinite number of side chains, which are scaled-down versions of the Ethereum blockchain. It is developed using smart contracts and Merkle Trees.
Companies can use the Plasma structure to meet their own demands because the child chains can effectively be used to execute a customized smart contract. As a result, several Plasma smart contracts can be developed for various use cases.
