Plasma supposes that Ethereum Mainnet doesn't need to verify all transactions. Instead, we can process transactions off Mainnet, freeing nodes from having to validate every transaction.
While Plasma executes transactions off-chain, they are settled on the main Ethereum execution layer
To prevent malicious withdrawals, a "challenge period" is introduced
they have more incentive to advance invalid state transitions on a larger scale
Does not support general computation (cannot run smart contracts. Only basic token transfers, swaps, and a few other transaction types are supported via predicate logic.
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