Blockchain networks face natural limits when every transaction must be processed on a single chain. Plasma was introduced to overcome this challenge by creating a layered structure where most transactions are handled on secondary chains, with only essential data committed to the main blockchain.
This approach reduces congestion, lowers fees, and increases throughput without compromising decentralization. Users retain control over their assets through exit mechanisms that allow them to safely withdraw to the main chain if a secondary chain fails or acts maliciously.
Although newer Layer-2 solutions have since evolved, Plasma remains an important concept in blockchain development. Its ideas laid the foundation for scalable designs and demonstrated how off-chain processing can support broader adoption of decentralized networks.
