PLASMA CHAIN SOME OF ITS SIGNIFICANT DISADVANTAGES IN THE BLOCKCHAIN NETWORK.

Source

Plasma chain, a different kind of network which was created and introduced by two very brilliant minds Joseph Poon and Vitalik Buterin can be described and defined as being a layer two scaling solution, scaling solution meaning that the plasma chain aims to find solutions and address the issues and challenges of scalability that is faced or eminent in the different blockchain networks, the way the plasma chain operates and functions that makes it more scalable is that it allows and enables transactions in the network to be processed and executed off chain.

Therefore it is safe to say that creation and introduction of the plasma chain was vital and its method and technique of operating brings a lot of benefits and the advantage of increased scalability however, that is not all the plasma chain brings unfortunately, the plasma chain has certain flaws that makes it susceptible to certain risks and failures that poses a disadvantage to the blockchain network.

It is very important that we consider and examine these disadvantages of the plasma chain so as to decide if it is going to be an acceptable and sustainable scalability solution therefore allow me to use this opportunity to discuss and explain some of the key and significant disadvantages of the plasma hain in the block chain network, highlighting and explaining how it can lead to centralization risks, security vulnerabilities,exit scams, user experience issues, and regulatory uncertainty.

POSES RISK OF CENTRALIZATION

One of the significant and key disadvantages of the plasma chain to the block chain network is that it has the potential to lead to the centralization of the blockchain network which is originally decentralized and is popularly adopted for its feature of decentralization, the use of plasma chain particularly poses risk of centralization in the segments and department that is mainly responsible or have the task and job of the operation and validation on the plasma chain network.

Therefore, mainly because the plasma chains operations rely and depends on a network and system of operators to process and validate it's off chain transactions it is going to be vulnerable and susceptible to the risk and likely possibility that a small number of validators could gain excessive control over the network and as a result leading to the centralization of power, control and authority in the network.

Furthermore, if the plasma chain should become centralized and the process of validation is carried out in a way and manner that is not decentralized this means that the operations, processes and transactions carried out in the plasma chain is going to be at risk of censorship and there would be little anybody or the other users can do about it and when a decentralized network becomes one controlled mainly by a part or fraction of the validators it losses its decentralized nature and this is a big disadvantage.

FACES REGULATORY SCRUTINY

Regulatory scrutiny from governmental based agencies and institutions is another significant disadvantage of the plasma chain, although we can say for sure what the government response will be to plasma chains but assuming on how they treated and continue to treat the traditional blockchain networks and cryptocurrency we can say that the regulatory guidelines surrounding the plasma chain is still facing varying regulatory views and opinions depending on the countries.

Furthermore, the regulatory uncertainty faced by plasma chain and the blockchain and cryptocurrency world in general poses significant risks for developers and it tends to discourage investors from investing and adopting the blockchain network seeing as they are susceptible and might face legal and compliance challenges related to securities laws, financial regulations, and consumer protection measures as required by regulatory bodies at any given time.

Also, the actions taken to enforce any of these new and restrictive laws and guidelines could negatively impact and affect the viability and legality of plasma chain projects and plasma chain based networks and as a result leading to uncertainty and instability in the block chain ecosystem and potential loss of investment and capital for both projects developers and stakeholders.

Source

RISK OF SECURITY VULNERABILITY

Another significant disadvantage of using plasma chain is that it poses risk of causing security vulnerability, so this means that the creation and introduction of the plasma chain introduces higher opportunities for additional security vulnerabilities and attack vectors that could compromise and destroy the integrity and safety of user funds and assets especially during stages of the adoption process for existing blockchain networks.

This is does not mean that plasma chains do not have robust security protocols as a matter of fact they employ cryptographic protocols and mechanisms and fraud proofs authentication for transaction validity and prevent risk of double spending, they are still susceptible and vulnerable to various forms of attacks, including invalidation attacks, data withholding attacks, and mass exit attacks.

However there are still failures that makes the plasma chain prone and susceptible to these security vulnerabilities and risks which can undermine the reliability and trustworthiness of Plasma Chains and as a result leading to the loss or theft of user funds or assets and also destroying confidence in the technology.

CONCLUSION

In conclusion, the plasma chain offers to improve and increase scalability and provides solutions for blockchain networks however, it comes with several disadvantages, setbacks and challenges that must be carefully considered like centralization risks, security vulnerabilities, complexity, exit scams, user experience issues, and regulatory uncertainty all these disadvantages are among the challenges the plasma chain faces.