Buterin Presents Anti-Hack Solution for Crypto Exchanges
March 12, 2018
Vitalik Buterin has presented a solution for blockchain scaling called Plasma Cash.
Plasma Cash was produced by Buterin and developers Dan Robinson and Karl Floersch. Plasma is essentially an on-chain solution for scaling designed by Buterin and the initiator of Lightning Network Joseph Poon as early as in August 2017. By optimizing data transmitted to the root blockchain Plasma reduces transaction fees for smart-contracts and decentralized apps (DApps).
As Buterin, the problem with scalability for the new solution is that each user has to load and verify every block which prevents exponential scalability. Unlike Plasma, Plasma Cash would demand the users paying attention to the coin-containing blocks only.
As for the current apps for Plasma Cash, Buterin sees an opportunity for the crypto exchanges to use the technology for better service security and anti-hacking protection.
Buterin also notes, even if exchange with Plasma Cash gets hacked, users won’t lose their funds.
Earlier Segregated Witness (SegWit), a bitcoin scalability solution, was implemented at most of crypto exchanges. The client version Bitcoin Core with complete support of the SegWit technology was officially published on February 26.