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Most blockchains today are trapped in the ambition to be multi-purpose platforms, ultimately sacrificing efficiency.
As a result, stablecoin transactions, which should be the backbone of cross-border payments, are often hampered by soaring gas fees and severe network congestion.
Ironically, the assets most frequently used for value transfers must compete for space with thousands of other applications on the same network.
To address this challenge, Plasma exists as a Layer 1 blockchain specifically designed to bridge the needs of stablecoins.
However, it is important to note that Plasma is not an exchange, trading platform, or marketplace for buying and selling crypto assets.
It is also important to understand that this article is solely intended as an educational tool to dissect the technical concepts and role of Plasma (XPL) Coin in strengthening the infrastructure of the blockchain ecosystem. @Plasma
What is Plasma (XPL) Coin?
Plasma is a Layer 1 blockchain designed with a primary focus on stablecoin transactions.
This network was built to move stable assets, such as USDT, efficiently and predictably, making it more suitable for payments and remittances than speculative crypto activities.
From the outset, Plasma was not positioned as a general-purpose blockchain, but rather as a dedicated infrastructure to support the use of stablecoins in real-world transaction scenarios.
XPL, within the Plasma ecosystem, serves as the native token that underpins the network’s operations. Its role is primarily in technical aspects, including network security, validator incentives, and protocol governance mechanisms.
XPL was also not designed as a primary payment tool for end users, but rather as an internal component that ensures the network’s stability and sustainability.
Functionally, Plasma positions itself as a blockchain-based payment infrastructure. Its primary focus is to provide a fast and efficient path for transferring value for stablecoins, not to build a speculative financial ecosystem.#Plasma $XPL
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