The development of stablecoins is currently accelerating rapidly, and various giants are turning their attention to this super cake. Plasma is undoubtedly one of the regular troops in this field. The strong backing of Tether, along with its specialization in stablecoins, gives Plasma significant competitive strength. Let's see how Plasma will establish its own place amid the fierce competition from predators. The current competitive landscape of stablecoins is mainly dominated by usdt and usdc, which together account for nearly ninety percent of the market share. With Tether behind it, Plasma naturally enjoys a considerable advantage, allowing it to access numerous resources and partnerships.
1. Overview of Plasma
The goal of Plasma is to serve as the infrastructure for future stablecoin financial systems, becoming the capillaries of this stablecoin empire. In the future, competition will secure a part of its own territory. Plasma has the following advantages that can compete with others:
1. High-performance architecture: Since Plasma only serves stablecoins and differs from the multifunctionality of other public chains, it has built a fast lane specifically for stablecoins. By adopting advanced technology architecture, it achieves sub-second level transfers for stablecoin transportation, making it faster than other public chains. This opens a pathway for daily use of stablecoins. Imagine if buying a cup of coffee only takes a few seconds to pay with stablecoins; many people might start trying stablecoin payments. This is also a part of Plasma's strategy to expand its stablecoin territory and secure a portion of land.
2. Zero transaction fees to attract users: By implementing automatic USDT transfers and XPL conversions at the protocol layer, users will not feel this exchange method. Additionally, the zero transaction fees for USDT transfers serve as the biggest highlight of the ecosystem. In the crypto world, the high gas fees for stablecoin transfers have always been a concern. Moreover, since daily consumption of stablecoins is difficult to promote—for example, if buying a cup of water costs 1U, who would use stablecoins for payment? Plasma opens channels between stablecoins and daily life through this method, expanding the probability and scope of stablecoin daily payments.
3. Security: Plasma periodically transmits status to $BTC . The security of Bitcoin is well-known. By utilizing Bitcoin's security mechanism, the uploaded transaction settlements are made tamper-proof. Security is also crucial in the crypto world. This method allows users to safely use Plasma for transactions without worrying about malicious merchants. Additionally, by being compatible with #ETH virtual machines, it attracts developers from other ecosystems to integrate into this ecosystem, building DApps or applications for it.
4. Powerful endorsements bring resources and cooperation. At the beginning of Plasma's launch, collaborations were established with top DeFi protocols such as Aave and Pendle. Liquidity is the most important thing in the financial world. Through cooperation, Plasma's ecosystem liquidity has expanded, attracting users and increasing transaction volume, which in turn leads to growth in transaction fees and the realization of a burning mechanism, ultimately completing the deflationary mechanism. This is Plasma.
Summary:
Whether Plasma can ultimately achieve its goal of being the financial infrastructure for stablecoins depends on the following key points: Can it attract users away from traditional public chains? Users are the most important, and more benefits and conveniences must be offered compared to public chains that already have a first-mover advantage. The prosperity of the ecosystem is also a matter of concern, such as the number of FDV in the ecosystem, as well as compliance progress achieved through institutional endorsements and whether technological development can keep up with time.
As an attempt by Tether regarding stablecoin public chains, Plasma represents Tether's effort to become a closed loop for stablecoin issuance and transmission. However, regardless of the circumstances, the competition for Plasma's stablecoin is a tough battle.
Plasma is giving away benefits! The first five hundred participants will receive rewards, including a Spring Festival red envelope.
