Why Plasma Is Building a Settlement Layer for Stablecoins—Not Another Everything Chain Imagine a small business owner late at night, closing their laptop after approving payments. These payments cover salaries for a remote team, an invoice from a supplier, and a refund that absolutely must reach its recipient before morning. None of these transactions are dramatic; they aren't meant to be. What matters is that the money moves, arrives in full, and is settled without any hitches. This quiet expectation—speed without drama, certainty without fanfare—is the core of Plasma's mission. It's not a blockchain trying to grab headlines or a platform aiming for every possible application. Instead, it's foundational infrastructure built to operate discreetly in the background, much like the city's plumbing: essential but rarely given a second thought. The Hidden Gap in Blockchain Design While blockchains have evolved rapidly, most share a similar ambition: versatility. They aim to support a vast range of uses, from finance and gaming to managing digital identities, cultural projects, and experimental applications. This wide-reaching goal, however, can create complications for a specific, critical task: payments. When stablecoins operate on general-purpose blockchains, they become subject to the unpredictable conditions created by all other network activities. This can result in fluctuating fees, unexpected network congestion, and transaction finality that is inconsistent instead of guaranteed. For example, a decentralized finance protocol might experience a sudden surge in activity because of a new, lucrative yield farming opportunity. This can cause transaction times to stretch out and costs to surge for simple stablecoin transfers. While this might be acceptable for developers testing out new decentralized applications, it’s completely unsuitable for the practical, everyday movement of money. Plasma operates on a different principle: payments should not be hampered by experimentation. Stablecoins Are No Longer an Edge Case Stablecoins have long since moved past being a niche tool for cryptocurrency enthusiasts. They are now routinely used for payroll, international remittances, managing company treasuries, paying vendors, and facilitating cross-border transactions that traditional financial systems often handle with frustrating inefficiency. Consider a freelance graphic designer in the Philippines getting paid by a client in the United States using a stablecoin. This transaction can be completed in minutes, bypassing the lengthy delays and high fees typically associated with traditional wire transfers. Despite their growing significance, the underlying infrastructure often treats them as secondary, an afterthought to the blockchain's primary functions. Plasma fundamentally changes this perspective. Instead of figuring out how stablecoins can be shoehorned into existing blockchain frameworks, Plasma asks what a blockchain should look like if stablecoins are its main purpose. This core shift influences everything, from how fees are structured and performance is prioritized, to the underlying assumptions about security. Settlement Is a Different Job Than Computation Plasma is not designed to be a playground for boundless creative expression or intricate decentralized applications. Its focus is singular: settlement. Settlement is about finality. Once a transaction is complete, it must feel definitive, both economically and psychologically, leaving no room for ambiguity or the anxiety of sudden fee spikes or network gridlock. This is why Plasma aligns more closely with financial networks like Visa or SWIFT, which prioritize transaction certainty, than with application platforms like Ethereum or Solana. It adopts principles from systems that value predictability over flexibility. While smart contracts are present, they are not the main event; their role is to facilitate the core settlement function, not to enable every conceivable type of on-chain logic. Composability is a consideration, but it is not the primary objective; the ability to combine different applications is secondary to ensuring that each payment transaction is reliably settled. The fundamental mission is straightforward: to move stable value cleanly, consistently, and at a significant scale. Designing for the Real World, Not Just On-Chain Activity Most people using stablecoins are not concerned with blockspace, validator economics, or the technical details of gas fees. Their primary worries are: - Whether funds arrive on time, especially when meeting payroll or critical payment deadlines. - Whether fees are reasonable and predictable, allowing for accurate budgeting and cost management. - Whether the system operates reliably day after day, without unexpected downtime or performance drops. Plasma's architecture is built with this reality in mind. Its design prioritizes: - Fast and dependable transaction finality, ensuring that once a payment is initiated, it will complete within a predictable timeframe. - Fee structures that are suitable for payment transactions, meaning fees are low and stable, even during periods of high network demand for other uses. - A user experience that does not require an understanding of blockchain mechanics, making it accessible to businesses and individuals who simply need to send and receive money. The network is intended to support institutions and individuals who value dependable outcomes over experimental features, much like a business relies on a stable banking system for its daily operations. Borrowing Trust Instead of Inventing It Rather than building an entirely new security model from the ground up, Plasma bases its settlement assurances on Bitcoin. This deliberate choice reflects restraint and a focus on proven reliability. While Bitcoin may not be fast enough for instant payments, it is universally trusted, and its security has been rigorously tested. Plasma does not seek to replace that trust; instead, it extends it by offering a faster settlement environment while anchoring its credibility in a proven foundation. This means users can have confidence in the finality of their transactions because they are backed by Bitcoin's robust security. The result is a system that feels less like a speculative venture and more like enduring financial infrastructure with a long-term perspective, similar to how established financial institutions build upon existing regulatory frameworks. Knowing What to Leave Out Perhaps Plasma's most significant strategic decision is its choice to forgo broad applicability. It does not attempt to accommodate every emerging trend, optimize for fleeting hype cycles, or promise limitless flexibility. It avoids trying to be a platform for NFT marketplaces, decentralized gaming, or complex DAOs. By concentrating its efforts on stablecoin settlement, Plasma avoids diluting its core purpose and the associated technical complexities. In doing so, it aligns with a future where blockchains are judged not by their capacity for doing many things, but by their reliability in executing what is truly important – in this case, moving money. The Quiet Future of Stablecoin Infrastructure If Plasma succeeds, its impact will not be obvious. It won't dominate news cycles, define cultural trends, or be frequently noticed by the average user. And that is precisely the intention. The most critical financial systems are those that people overlook—until they break. Plasma is building for a future where stablecoins move as money should: smoothly and reliably, and where the underlying blockchain technology finally retreats into the background, getting out of the way of the actual financial activity it enables. @Plasma #plasma $XPL
$VANRY hit the first price target. Shorts opened earlier are profitable. New short entries aren't advised.
Profitable shorts were above 0.0088–0.0091. New shorts near 0.0082 offer poor risk-reward. Entering shorts now risks a small bounce or sideways movement.
0.0081–0.0082 acts as short-term support. The RSI is close to oversold, indicating a pause, not a reversal.
This area is not a strong buying zone, just a possible pause. Better long entries require price to hold above 0.0081 and form higher lows. A clear bullish signal needs price to break 0.0093 with significant volume.
The trend remains down. Shorts were successful earlier. It's wise to take profits and observe, rather than pursue new trades.
Vanar Chain’s Bet: An AI-Native Layer-1 Built for Everyday Apps
Most of the time the internet does not feel like technology. The internet feels like something we do every day. We use the internet much that it feels like routine. The internet is something that is part of our daily life like the internet is always there. People use their phones to buy coffee when they're on their way to work. Someone who makes videos can upload them online without having to think about how it all works. A person who owns a business can pay their employees easily and they expect everything to go smoothly and happen on time. The great thing about the software we use today is that it becomes something we do every day without thinking about modern software and how modern software makes our lives easier, with the help of modern software. Blockchains have been around for a while. They are not going away. These Blockchains can be really annoying with things like wallet pop-ups and surprise fees. The user experience is also over the place and the apps often feel like they are still being tested. Vanar Chain thinks that the next big thing, in Web3 will not be the Blockchain that can do everything. The Blockchain that makes apps feel normal and easy to use like the apps we use every day for Blockchains. Not “ordinary” as in boring—ordinary as in frictionless, stable, and familiar. Vanar says it is a set of tools that uses artificial intelligence to help smart contracts work better. These tools are designed to make smart contracts remember things understand what they mean and do things on purpose. Vanar wants to make smart contracts more useful by giving them the ability to store information figure out what it means and then use that information to make decisions and take actions. Vanar is, about making smart contracts smarter and more helpful. Why “AI-Native” Is a Design Choice, Not a Buzzword Most blockchains think of intelligence like something you can just add on. You know, like a tool here a helper that works outside the main system there or a extra part that you can attach to the basic layer.. Vanars message is not the same. Vanar says that smart applications need some basic building blocks especially when it comes to memory, what things mean and how you get information.. Vanar thinks these building blocks should be a part of the main system, not just something that is added on from the outside. The difference is important because the apps we use every day are not things we do once. Everyday apps are, like a series of steps: When a user logs in to the app they will probably come back, to it later. The user expects the app to remember their preferences. The user wants the app to know what they like so the app should remember the users preferences. This is what the user expects from the app. The user logs in. The app should remember the users preferences. When we are talking about customer support it is really important to have some history and context. The customer support flow needs to know what has happened before not what is going on right now with a state variable. Customer support flow really needs this history. Context to work properly. A marketplace really needs to have things that make people trust it like ways to know who people are and checks to make sure everything is safe. A marketplace needs these trust signals these identity patterns and these risk checks to work properly. A content app needs storage that does not break when a server disappears. This is because the content app requires a storage system that's reliable and can keep working even if one of the servers stops working. The storage for a content app should be able to handle problems with servers without affecting the app. A good storage system, for a content app is one that keeps working even when a server disappears. If Web3 wants to be used by people it needs to work smoothly all the time. Vanar says that for this to happen Web3 needs to be able to remember things. To remember things Web3 needs a system that can store and look up important information not just run codes. Web3 needs this to really work. The Five-Layer Stack: Turning a Chain Into a System Vanar describes itself not much as a single chain but more like a stack. This stack has five layers. Each of these layers is working towards the goal. The goal is to move from just "smart contracts" and towards what Vanar calls "intelligent systems". Vanar wants to make this move from " contracts" to "intelligent systems”, with these five layers. Things, like names and how they are done can change over time. The basic idea of the concept is easy to understand: Vanar Chain (Base Layer) – the modular Layer-1 foundation powering the stack. Neutron – positioned as a semantic memory / compression layer designed to store richer data on-chain more efficiently. Kayon is like a layer that helps us think and ask questions, about the information we have stored. It also supports the way we work with intelligence information. Kayon does this by looking at the information we have and helping us make sense of it. Axon – described as intelligent automation (think orchestration and actions). Flows – the application layer mapping those capabilities into industry use cases. The main thing is not to remember the names. What Vanar is trying to do is put things : Compute + memory + retrieval + reasoning + orchestration So the idea is that app developers can use this thing without having to start from scratch and build the basic structure every single time they want to make an app. This means app developers can just use it as it is and make their apps without wasting time on the old basics. App developers will really like this because it saves them a lot of work when they are making apps. That is a response to a common problem that people have with Web3: a lot of Web3 apps still use centralized storage they use centralized search and they use centralized logic for anything that is more complicated than just moving things around. Web3 is supposed to be, about giving people control but these Web3 apps are not really doing that because they are still relying on centralized systems for a lot of things. Neutron and the “File Problem” in Web3 People say that blockchains are really good at keeping track of receipts. They are not very good at keeping the actual files. Blockchains can store information about things like receipts. They are not good at storing the things themselves like the files. This is a problem with blockchains. Blockchains are supposed to be good at keeping things safe. They are not good, at keeping files safe. Most chains can store proofs and hashes and small pieces of information.. The apps we use every day like media and commerce and identity and things we use at work they make real information: documents and logs and metadata and all sorts of rich content and histories. Vanars Neutron layer is trying to change the way people pay for storing things on the chain by using a lot of compression. Some people, in the community say that Vanars Neutron layer can compress kinds of data to a really small size. Vanars Neutron layer is supposed to make storing things on the chain less expensive. The thing is, even if the exact numbers are different depending on what kind of file we're talking about and how it is set up the direction of this is still important: If storage becomes cheaper and widely available in its natural form the cost of storing digital information will go down. Storage is something that people need to save their files and data. Storage is becoming more common and easier to use. This means that storage is getting better and better. People will be able to use storage without having to pay a lot of money. Storage is a thing, for people who use computers and other devices. Mobile apps can rely less on servers this means that the mobile apps can do more things on their own without needing to talk to external servers. This is good, for apps because they can work better even when the internet connection is slow or not available. Mobile apps can store information on the users device so they do not need to get it from external servers every time. and the idea of ownership becomes something that really means something it is a lot more, than a token that you have in your wallet. For everyday apps, this is the difference between: I have the NFT. The NFT is mine. I am the owner of the NFT. and I have the content, the history and the context that the app needs to work. The app requires my content, my history and my context to function. Kayon and the Missing Ingredient: On-Chain Context Smart contracts are like simple machines. You put something in. Something comes out. This is really useful. Smart contracts can not do much more, than that. Smart contracts are limited because they always do the thing. Real apps need to know what is going on around them. They have to understand the situation they are being used in. Real apps need context to work properly. This means they need to know things, like where the user's what the user is doing. Real apps need context to make sense of things. So I want to know what happened before that. Can you tell me what happened before all this started with the thing we are talking about the thing that happened before? This user usually asks for things to be rewritten so that they sound like a person wrote them. The user wants the writing to be simple and easy to understand. They do not like it when the writing sounds like a computer wrote it. The user also wants the person rewriting the text to use words that are not too long or complicated. They like it when the sentences are lengths, which makes the text more interesting to read. This user likes it when the main words are repeated of using pronouns. They want the text to sound like it was written by a person so they like it when the writer adds their own thoughts and feelings to the text. The user does not like it when the text has words or phrases that sound like they were written by a computer. They want the text to sound real and honest. If the user gives a piece of text that does not make sense they just want it to be erased and not rewritten. They like it when the formatting of the text is kept the same like when there are bullet points or numbers. The user wants the grammar and punctuation to be correct. They do not like it when symbols are used that are not, on a standard keyboard. They like it when the writer can figure out what kind of text they are rewriting, like an email or a story and write it in a style. The user does not want things to be changed, like names or addresses. They want these things to be left alone and rewritten exactly as they were written. Is this action normal or suspicious? What options are in line, with what the user wants to do? The users intent is what we are trying to figure out. We need to find the choices that match the users intent. Vanar frames Kayon as a layer that helps figure things out. It can look at the data we have stored and help our applications behave in a way. This is where the idea of something being "AI-native" actually starts to make sense. Of sending all the smart stuff away from the main system Vanar thinks it is better to keep things simple and honest. They want to make sure that the way things are done can be checked and that the important parts, like memory and logic are close to the parts that make sure everything is fair and safe like the chains guarantees. Vanars vision is, about making this happen with the chains guarantees so people can trust the way things are done with Vanars vision and the chains guarantees. Not everything has to be, on the blockchain.. People who use these apps every day need to feel safe knowing that the app is not doing something different without them noticing. The apps behavior should be honest and clear so people can trust it. People should be able to rely on the fact that the app is doing what it says it is doing and that it is not secretly changing how it works. People who use apps every day do not want these apps to have cryptocurrency features. They just want the apps to have features that they can use. Everyday apps should have features that're easy to understand and use, like the things we do every day. Everyday people want to use apps in a normal way without having to deal with cryptocurrency features. Vanar is always talking about one thing: people do not want a chain when they wake up. What people really want when they wake up are experiences. They want to play games. They want to be part of communities. They want tools that're useful. They want products that fit into their life. Vanar says that people want these things, not a new chain. That is why Vanars ecosystem messaging focuses on consumer-facing distribution channels like Virtua, which's a metaverse and VGN which is a gaming network. Vanars ecosystem uses these channels to reach people. Vanars ecosystem is trying to connect with people through places, like Virtua and VGN. From an adoption standpoint, this is a deliberate strategy: When people build infrastructure- chains they are usually thinking that developers will be interested, in them first and then users will start to use them. This is how it often works with infrastructure- chains. They really count on developers to come and build things on them and after that users will follow and start using what the developers have made. Experience first ecosystems are really about meeting the users where they already spend their time like when they're watching entertainment or hanging out with friends on social media, which is a big part of their social identity and culture. These ecosystems try to bring in blockchain technology in a quiet way without making a big deal, about it so the users can just focus on what they are doing. The idea is to make blockchain a part of the experience like something that's just there and not something that the users have to think about. Experience first ecosystems want to make sure that the users have a time and that blockchain technology is used to make the experience even better so the users can enjoy entertainment and express their social identity and culture in a more fun and exciting way. This is a gamble. It makes sense. It looks at blockchain like the pipes, behind the wall not the thing you actually use. Blockchain is the backend, not the actual product that people see. Blockchain is what makes things work. It is not the thing that people buy. This is where the bet gets real. We are talking about PayFi and RWAs. There are also these apps that must not break. PayFi and RWAs are important here. The thing is, these apps that must not break they really cannot break. PayFi is something that people are counting on. RWAs are also a deal. So when we talk about PayFi and RWAs we have to think about these apps that must not break. PayFi and RWAs are the key, to making sure these apps work properly. Vanar also puts itself around things that're actually useful like PayFi and real things that are represented by tokens, which shows that Vanar wants to help systems where it is really important that things work properly more, than just being new and different. This matters because payments and asset rails do not like it when things are messy. If you are building something, payments and asset rails will make things tough, for you when things are not organized. Payments and asset rails really do punish chaos. microtransactions in games, subscription billing, settlement between businesses, programmable invoices, loyalty systems tied to real goods, You cannot send out something that only works when gas is cheap and users are familiar with crypto. This thing will not be good enough for people who do not know a lot about crypto and, for when gas is expensive. You have to think about the people who are going to use this thing and make sure it works well for them when gas is not cheap and they are not crypto experts. Crypto users need something that's reliable and works all the time not just when gas is cheap. Some people in the community talk about things that make the experience better for users like being able to buy things having a smooth experience, without extra costs or making it easier to manage accounts. Details are different depending on who you ask and things can change with each version of the community and exchange. The main thing to remember is that regular apps need to work in a way that people can expect. If Vanar does well it will be because developers can make things that work the same every time and that makes the products feel solid and reliable. Vanar needs to make sure that the things it does are things that people can count on so developers can build products with Vanar that people will like to use. The Role of the Token: Utility, Security, and Participation Vanars documentation says that $VANRY is not a token that you use to make transactions. It is more than that. Vanars documentation frames $VANRY as something that also helps to keep the network safe allows people to have a say, in how thingsre run and gets people involved in the ecosystem of $VANRY . In a system that is fully grown the question of tokens is not so much, about what people're talking about and more about how the tokens fit in with the rest of the tokens: So who actually pays for the resources that we use, like the computer power, the storage and the inference. The people who pay for these resources, like compute, storage and inference are the ones who use them. The people who take care of the network are the ones who secure the network. They make sure the network is safe, from people who want to do bad things to the network. The people who secure the network do an important job to keep the network safe for everyone who uses the network. The people in charge of upgrades and parameters are the ones who make sure everything runs smoothly. They are responsible, for upgrades and parameters. These people have to know what they are doing with upgrades and parameters. The team that handles upgrades and parameters has to be very careful. They have to think about upgrades and parameters all the time. Incentives are supposed to reward people for doing something not just for doing a lot of things. So how do incentives actually reward activity rather, than just empty volume? The idea is that incentives should motivate people to do things that're really helpful like the useful activity of creating something new instead of just doing things that do not really matter which is the empty volume. Vanars own recent comments, which were written like a plan for the future say that they want to try out a way of paying for some of their artificial intelligence tools. This new way would be like a subscription. The idea behind this is to make sure that people are paying for what they use so that Vanar can make a steady income, from these tools. Vanar wants to make sure that the money they get from these intelligence tools is fair and will last over time. The thing is, we do not know if this model is going to work.. It is the kind of question we should be asking. This is because the apps we use every day need to be able to last for a time not just be popular for a little while. Everyday apps, like these need to be strong not just get attention for a short time. The model of apps needs to have economic durability, not just temporary attention. The Hard Part: Turning “Stack Ambition” Into Developer Reality Stacks look really good, on slides. Developers judge stacks in two places: How quickly can I get something real done and out the door with Time-to-build? What is the speed at which I can actually deliver something with Time-to-build? Time-to-build is, about how I can make something happen and get it to people. Does the system keep working when users show up? What I mean, by Time-to-maintain is that it should still be working properly. The Time-to-maintain of the system is very important because it has to keep working when users show up and start using it. Vanars approach is really interesting because it brings together memory and reasoning concepts and some basic ideas that are focused on Artificial Intelligence. This makes Vanars approach very ambitious. However it also makes things more complicated. When things get complicated that is usually when new platforms have problems and do not do well as they could. The complexity of Vanars approach is something to think about. Vanars approach has a lot of potential. The complexity is a big challenge, for Vanars approach. So the real test of Vanars bet is not, about whether the term "AI-native" sounds good. The real test of Vanars bet will be whether Vanars bet actually works out. The real test of Vanars bet is what really matters. Developers can use these layers without having to fight against them the layers are made so that developers can work with the layers easily the developers do not have to worry about the layers getting in the way the layers and the developers can work together smoothly the developers can just use the layers. People can use it without having to learn about crypto things. Users do not need to know a lot, about crypto behavior to interact with it. The system is made so that users can interact without being trained in crypto behavior. Things do not always go as planned and applications stay resilient when conditions are not perfect. This means that the applications can still work properly even when things are not ideal. The applications stay resilient when conditions are not perfect so people can keep using them without much trouble. If Vanar really does it it will not feel like something new and exciting. It will feel like an app that just does what it is supposed to do. Vanar will make the app work in a way that's simple and easy to use so it does not feel like a big change. The app will just. That is what Vanar is trying to do. That is the point. What to Watch Next If you are watching Vanar closely as a company that makes apps for use there are a few things that are more important, than what they say: We want to see real people staying with the apps it talks about not getting them or making accounts but actually using the apps. Developer adoption of Neutron/Kayon-style primitives beyond demos. Cost and performance under real usage (especially storage + retrieval patterns). The economic design should be about rewarding people for using things in a way not just for buying and selling things quickly to make a profit. The idea is to encourage people to use things and make the most of them rather than just treating them as a way to make money. This is what economic design that rewards usage is all, about, not just speculative flow. Closing Thought Vanar Chain is making a bet. They think the next big thing in Web3 will not be about chains that try to collect lots of ecosystems. Instead Vanar Chain believes it will be, about chains that make software feel simple and easy to use. This means that Web3 will have intelligence that can remember things apps that can keep working without stopping and people will stop talking about blockchain all the time. Vanar Chain wants to make Web3 feel normal again. If that sounds “too boring” for crypto, that may be exactly why it has a chance. @Vanarchain #Vanar $VANRY
Money need not be a thrill to matter. The world asks for little from payments: that they reach their destination swiftly, whole, and without unexpected turns. Plasma was forged with this very view. Rather than aiming to be a chain that "does it all," Plasma casts stablecoins as its primary purpose—the chief task, not a secondary option. The core idea is straightforward: if stablecoins are already the internet's most popular financial tool, they merit an infrastructure crafted for their actual use—high volume, effortless transactions, dependable settlement, and a clear experience for everyone, individuals and companies alike. Consider sending payroll to different countries. Or a market paying out countless vendors. Or a small shop moving its inventory funds in the dead of night. These are not DeFi rollercoasters. They are mundane processes that keep everyday life running—and they falter when networks become crowded, charges surge, or confirmation drags on. Plasma's narrative is a subdued one: to construct a settlement layer where stablecoins flow as money ought to—dependable, impartial, and perpetually active. If it succeeds, you'll pay Plasma no mind. You'll simply observe that money, at last, acts as it should. @Plasma #plasma $XPL
Snowy Davos, but the conversations are anything but cold. The World Economic Forum Annual Meeting 2026 (Jan 19–23) is running under the theme “A Spirit of Dialogue” a reminder that, in a more fragmented world, progress still starts with people sitting at the same table.
This year’s agenda keeps circling five big questions: cooperation in a contested world, new sources of growth, investing in people, scaling innovation responsibly, and building prosperity within planetary boundaries.
And you can feel the tension behind the headlines: AI is moving from “future promise” to “present shock,” with leaders warning it could reshape huge parts of the job market fast.
Davos 2026, at its best, isn’t about perfect answers, it’s about pressure-testing reality, then leaving with actions that survive the flight home.
$VANRY Short strategy: Sell high, buy low. Enter short: 0.0088–0.0090, or 0.0091. Take profit: First at 0.0085–0.0084 or 0.0080–0.0078. Stop loss: 0.0092–0.0094.
Long (buy) is risky now — wait for price to break and stay above 0.0093–0.0095 with green candles and more volume. It's not there yet.
Plasma isn’t chasing hype. It quietly makes stablecoins move fast, cheap, and predictably—so payments feel boring, reliable, and invisible. That silence is success.
$BNB slipped from the top 📉😬 Buyers hesitated, sellers celebrated too early 😅 Then it steadied near 888 💪📊 Now everyone’s watching: bounce back… or one more prank? 😈📈
Plasma Isn’t Trying to Be Everything—It Just Wants Stablecoins to Work
Plasma wants to be the place where people can easily use stablecoins. This is a story about the behind the scenes work that makes things run smoothly. Plasma is trying to be the settlement layer for stablecoins. The people at Plasma are working hard to make this happen. They want to make sure that stablecoins can be used easily and quickly. This is a story about the work that Plasma is doing to make this a reality. Plasma and stablecoins are going to be very important in the future. Plasma is the key to making stablecoins work well. The team at Plasma is focused on building a foundation, for stablecoins. This will help people use stablecoins with confidence. Plasma and stablecoins are a deal. On a Tuesday morning nothing big happens, at least that is what you see at first. A payroll operator sends a batch of money to people: contractors in three countries, a bill from a supplier and a little money back, to a teammate who is traveling. The amounts of money are normal. What people want is for the money to get there away and they want to know exactly how much it will cost and they want the whole process to be straightforward and not exciting. The payroll operator just wants the money to get where it needs to go without any problems so the process is basically routine and uneventful like it should be. The thing is, being "boring" is actually the point. Payments are really cool when you do not think about how hard they're to make. This is because payments only seem magical when they do not remind you that they are hard. Payments, like these are what people want. Stablecoins are really useful for people who use crypto every day. They are used for lots of things like settlement. Sending money to other people. Stablecoins are also used for exchange and for companies to manage their money. The people at Plasma think that stablecoins are important enough to have their special kind of network. They do not want to make another network that can do everything. Rather a network that is good at one thing. Moving stablecoins safely and reliably. Stablecoins are a deal and Plasma wants to make a network that is just, for them. 1) The problem with stablecoins is that they do not work well on the blockchain systems they're on. Stablecoins are not living up to what they were meant to do because the blockchain systems were not made for stablecoins. The blockchain systems that stablecoins are on are not stable enough for stablecoins. This is an issue, for stablecoins. Stablecoins need blockchain systems that can handle them properly.. The blockchain systems that stablecoins are living on are not doing a good job of supporting stablecoins. General purpose blockchains are good for a lot of things. They can handle types of assets and many different applications. They can also do different things at the same time. This is really good for trying out things.. When it comes to stablecoin settlement it is a different story. Stablecoin settlement has its set of problems that can go wrong. General purpose blockchains are not the fit, for stablecoin settlement because stablecoin settlement needs something more specific. People who use stablecoins do not really think about whether they can use it for anything they want. What they think about is: The thing about execution is that transfers should not be competing with things that have nothing to do with them. Transfers need to happen without any unrelated activity getting in the way of transfers. This way transfers can be done quickly and efficiently which is what predictable execution of transfers is, about. The fee has to be stable. This means that payments cannot depend on the network mood. We need to make sure that the fee for payments is always the same so people know what to expect. The network should not be able to change the fee just because it feels like it. This is important, for fee stability. Fee stability is necessary for payments to work properly. We need things to be done quickly and reliably so that the settlement can be finished properly. The settlement needs to close that means it needs to be fast and reliable. Fast and reliable finality is very important for the settlement to be completed without any issues. simple UX (especially around gas management) Plasmas framing starts stablecoins are the main thing. They are what the system is working on. If stablecoins are what the system is working on then the blockchain should think of them as important not just something that is also using the system. The blockchain should treat stablecoins like they are the users of the road not just something that is sharing the road with a lot of other things. Plasmas idea is that stablecoins are the focus so they should be treated that way. 2) Plasmas idea is that they should focus on building a settlement. Plasma does not think they should try to be the best at everything. Plasma believes it is better to be really good at one thing like building a settlement of trying to do a little bit of everything. This way Plasma can make their settlement really strong and good. Plasmas thesis is, about specializing in settlement and not competing with others on every single thing. Plasma is a type of cryptocurrency that says it is a stablecoin-native Layer 1. This means Plasma is made for payments and settlement. It does not try to be everything to everyone. Plasma just wants to be good at helping people make payments and settle transactions. Plasma positions itself as a stablecoin-native Layer 1 built for payments and settlement than a catch-all ecosystem that tries to win every narrative, about Plasma and what Plasma can do. That specialization shows up in what the specialization chooses to optimize: zero-fee USD₮ transfers as a headline primitive (not a temporary subsidy) A stablecoin is used first when it comes to fees so users do not have to deal with an asset just to send stablecoins. This makes it easier for users of stablecoins to send value without having to worry about other things. The basic act of sending stablecoins is made simple, for users of stablecoins. Some things you can add to make things better are payments or transactions. People usually want to keep their payments private especially when it comes to business. Payments are something that people do not want others to know about so it is good to have this option. * You can have payments * You can have secret transactions Payments are very important and people want to keep them secret. The system has EVM compatibility so the builders of the Ethereum Virtual Machine do not need to learn the Ethereum Virtual Machine all over again from the beginning. This means that the builders of the Ethereum Virtual Machine can just keep using the Ethereum Virtual Machine as they already know how to use the Ethereum Virtual Machine. This is not what a company does when it wants to take over everything. This is what a company does when it wants to be the place where people use stablecoins. The company wants to be the place, for stablecoins. 3) What “Settlement Layer” Means in Practice In style money matters the thing called settlement is not really something people get excited, about but everyone needs it to happen. This is the moment when all the records are finally set in stone all the money is accounted for and people do not owe each money anymore. Settlement is really important because it is when settlement happens that everyone knows where they stand with their money. Settlement is what makes sure that people do things fairly and that money is moved correctly. The language that Plasma uses for its settlement layer really means that it is responsible, for a number of things. Plasmas settlement layer is supposed to do a job. Plasmas settlement layer is not supposed to do everything. not the flashiest apps not the prettiest wallets not the social layer not the exchange UI The thing that makes the ledger work in a way that feels like money is that it is consistent and predictable. This means that when you move stablecoins it feels like you are moving money. The ledger behavior is hard to break which is what makes it feel much like money movement. The stablecoin movement is consistent and predictable which is important for it to feel like money. This is why Plasmas documents really focus on the design and features that are made for stablecoins. The main goal of Plasma is to be able to handle a lot of transactions, around the world and to make it easy to move money. This is the thing that Plasma is supposed to do. 4) The Gas Problem: People Have Trouble Making Payments Because Of All The Extra Steps A stablecoin transfer is conceptually simple: debit here, credit there. Most chains do something that feels really weird to people. They make you have a token and you need to use it to pay for the right to move your first token. This is okay for people who are used to crypto. It is a big problem for everyone else. The thing is, most chains are, like this and it is how they work with tokens. Plasma is trying to make things easier for people. When people in the community write about Plasma and how it works with things they say that it can handle fees in a way that is easy to understand like using stablecoins. This means that when people send money it is, like sending dollars and they do not have to worry about all the extra things that come with using cryptocurrency like managing a small portfolio just to make a transaction. Plasma wants to make it so that people can just send money without having to think about all that stuff. The main thing is not about marketing. It is about how people behave and what the people, in marketing do to understand the behavior of people and how the behavior of people affects the marketing and the people who are doing the marketing. When we use stablecoins to make payments the transaction should be simple and easy to do. It should not feel like we are doing something complicated with finance like a ceremony. Stablecoins are, for payments so using them should be straightforward. When we talk about stablecoins being used for settlement the cost really should not be a surprise, to you. Stablecoins are meant for settlement so you should expect the cost that comes with using stablecoins for this purpose. 5) EVM Compatibility, Without the “Reinvent Everything” Tax Plasma made a smart decision by staying compatible with EVM. This means it will work with the tools and contracts that people are used to with Ethereum. Plasma wants to support the kind of tooling and contract environments that Ethereum users are familiar, with. This is important because the infrastructure, for settlements is something that gets better over time by adding to what's already there not by starting over from the beginning. Settlement infrastructure is what really benefits from this. It does so by building on what it already has not by resetting everything. Settlement infrastructure is the key here. It is the thing that wins in the long run. Digital wallets can be set up quickly. This means that people can start using their wallets to make payments and do other things with them faster. Digital wallets can integrate with services faster too. Developers can take the code they already have and change it so it works with something or they can use it as a starting point to create something similar, with the existing code. They can do this by porting the existing code or adapting the existing code to make it work. This way they can use the existing code they have. tooling and audits are more transferable So Plasma is like something that can have ideas about what is important but at the same time it is careful, about how it allows people to create things with it. Plasma does things in terms of what it thinks is important but when it comes to how Plasma lets builders make stuff Plasma is more traditional. 6) A Chain Designed Around Stablecoin Workloads, Not Chain Culture Here is an uncomfortable truth: chains often build culture first and then utility second. The thing about stablecoin settlement is that it flips that order. Chains are usually about building a culture. Then they think about utility but stablecoin settlement does the opposite it focuses on utility first and then culture, which is the case, with stablecoin settlement. Plasma is made to work with stablecoins. It has features that help stablecoins move around. For example you can send USD₮ without paying any fees. The fees, for stablecoins are also handled in a special way. Plasma also helps keep your transactions private. That is not an ecosystem vibe. It is a decision about workload. The ecosystem vibe is not what this is about. This is, about making a decision regarding the workload. The workload is what matters in this situation. Workload decisions tend to be long lasting because they are made to deal with things that happen over and again like recurring needs. Workload decisions are a part of this and they are often made with the idea that workload decisions will be around, for a while. Remittances are something that people will always need. They are a way for people to send money to their families and friends who live in countries. This is something that has been happening for a time and it will continue to happen. People will always want to help their loved ones who are living else. Remittances are very important for people around the world. They help people to pay for things, like food and housing. Remittances are not something that will go out of style soon. People will keep using remittances to send money to the people they care about. Payroll will not become a thing of the past. The idea that payroll is no longer needed is not true. Payroll is still very important. People will always need to get paid for the work they do. Payroll is a part of every business and it will continue to be that way. Payroll is here to stay. It will not become obsolete. Payroll systems may change over time. The basic idea of payroll will remain the same. People will always need payroll to get their money. Payroll is essential, for everyone who works. Business does not come to a halt just because people start talking about things. Commerce is always going on no matter what stories are being told at the time. When narratives change commerce keeps moving it does not stop because of the new stories that people are talking about, commerce and business are always happening. If Plasma is successful it will not be because the people who like it were the loudest. It will be because Plasma made people think that stablecoins are a part of how things work. Plasma made using stablecoins feel like a thing to do. 7) Consensus and Finality: The thing is, Settlement really cares about when thingsre done more, than what is actually done. If you are building a meme app, the fact that something is final is a detail that affects how users experience the app. The meme app is what matters and finality is one part of the meme app that makes it work well for users of the meme app. If you are dealing with something that's like money then the final result is what really matters. When you are settling something that has a lot of value, like money the final outcome is the thing that you get in the end. This final outcome is what people care about when they're dealing with money-like value. Other people have written about Plasma in a way. They say Plasma uses a kind of system to make sure everyone agrees on things. This system is, like the ones used by PlasmaBFT. It is based on something called HotStuff. The goal of Plasma is to be very efficient and to be able to handle a lot of things at the time. This is what you need when you are dealing with payments and you want to make sure they are settled quickly and correctly. Plasma is trying to do this. The main thing is not what the letters stand for. It is what the Computer System or Software or Program is supposed to do. The key idea is the intent of the Computer System or Software or Program. reduce ambiguity about transaction ordering I want the settlement to happen fast and to happen the way every time. The settlement needs to be quick and consistent. This will make things easier, for the settlement. The settlement has to happen consistently. You do not want to get that feeling that everything's fine except when it is not because that really hurts the trust people have when they make payments with you. The "it worked, except when it didn’t" feeling is really bad, for payment trust. Payment trust is very important. You need to make sure that payment trust is strong. You want people to trust payments when they use your service so you have to avoid the "it worked, except when it didn’t" feeling that kills payment trust. 8) Confidentiality as a Payments Feature, Not a Crypto Luxury Payments are not about moving money from one place to another. They are also about the people and companies we do business with. This includes things, like invoices and salary information and what we agree to when we work with suppliers. This is information that businesses usually do not want to share with everyone. Plasma has documentation. They do research on this thing. They talk about how Plasma can help people make payments or do secret transactions. This is something they thought about when they made Plasma, which's mostly, about stablecoins. That is a signal. Stablecoin settlement is not about how fast it is and how much it costs. It is, about giving people what they already expect from money systems. People expect that not every time they send money it will be announced to the public. Stablecoin settlement is supposed to match these expectations that people have from money systems like the ones they use every day. 9) The “Neutral Rails” Angle: Winning Without Demanding Exclusivity Some companies try to win by keeping people in their little world. They say things, like "you can do everything here" and they mean it. They want you to stay inside their world and not go else. The idea is that if they can keep you there you will use their stuff and not look at what other people have to offer. They want to be the ones you deal with. This is what people mean when they talk about being trapped in a garden. Some infrastructure does this too. They try to keep you from leaving by making everything you need available inside their walls. The way companies work with each other or the settlement-layer posture suggests that they should try an approach. This approach is to be useful to everyone to people who do not always support the company. The settlement-layer posture is important here because it shows that being useful to people who're not loyal is a good strategy. The settlement-layer posture is about being helpful, to everyone and that is what companies should focus on. People talk about Plasma in terms of ecosystems. They say it can be at the bottom of a lot of different activities. For example stablecoins can be used on different networks and applications but when it comes to settling transactions it can all go through a chain that is really good at doing that job. Plasma is, like a base that supports all these things, including stablecoins. This is closer to how real payment networks spread and work in the real world, like the way people use payment networks to pay for things and send money to each other through payment networks. by being compatible by being dependable Things get really dull when you are the part that everyone quietly uses. The internet connection is the part everyone quietly uses. People do not really think about the internet connection until it stops working. The same thing is true, for the part everyone quietly uses. 10) The Real Test: Can It Remain Uninteresting When It Gets Really Big? Making payments around the world is something a lot of people can promise.. It is really tough to keep being reliable when a large number of payments at global scale come in. Payments at scale can be very tricky to handle when the volume of payments, at global scale increases. One case study points out that Plasma got a lot of attention fast. It says Plasma is, about making it easy to move money around for apps that deal with payments. The study thinks of Plasma as a way to make stablecoins work well rather than a place where people can try out all sorts of things. When you think about a settlement and the things that make it work, like roads and houses it is not how good it is when it first starts that matters. What really matters is how well it works over a period of time not just at the very beginning. The settlement infrastructure is something that people look at and judge over time not just when it is launched. Are the fees easy to understand? Do the fees make sense to people? Are the fees something that people can figure out without getting confused? The fees should be simple for everyone to understand. Do the fees remain easy to understand? When the system is under a lot of stress does the throughput of the system remain stable? I want to know if the throughput of the system stays the same even when it is really busy. The throughput is what I am worried about so I want to make sure the throughput does not go down when the system is, under stress. So I was thinking about integrations. I wanted to know if they are still easy to do. Do integrations remain simple? I mean are integrations straightforward and not too complicated? So when we are talking about edge cases do they get taken care of without the user having to deal with a lot of hassle. I mean do edge cases get handled smoothly without the user having to go through a lot of trouble. Do edge cases really get handled without any user drama. So Plasma is really focused on settlement. The thing that shows if Plasma is successful is not all the excitement, around it. It is whether people think of the Plasma chain when they ask a question. Stablecoins are really cool because they feel like money when you use them to buy things online. Stablecoins feel like real money when you are shopping on the internet. You can use stablecoins to pay for things you want. It feels like you are using real money. Stablecoins are also useful when you are sending money to someone. The person who gets the stablecoins can use them to buy things they want. It feels like they got real money. Closing Scene: The Best Settlement Layer Is Invisible Back to that Tuesday morning payroll batch. The operator does not want a religion. They want to see receipts and confirmations. They want to know that everything is final. The operator wants a number that matches what is, in the ledger. They do not want to have to think about the problems of blockspace or the details of gas tokens. Plasma wants to be the place where stablecoins are used in a way. This means that people can send money quickly. The fees for using stablecoins are handled in a way that makes sense for stablecoins. Plasma is designed to make payments easy. That is the main thing it is used for. Plasma is, about making it easy to use stablecoins. If something like Plasma actually works most people will not say that Plasma is really amazing. They probably will not even mention Plasma all.. If Plasma does not work people will definitely talk about Plasma and how Plasma is not that great. So we can tell how good Plasma is, by what people say about Plasma. People will just stop talking about the rails. The rails will not be mentioned anymore. And for settlement infrastructure, that silence is the highest compliment. @Plasma #plasma $XPL
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