Ethereum Plasma: The Ultimate Enlightenment Guide

Ethereum is looking to build a network to carry out calculations beyond the blockchain, hence developing Ethereum plasma technology. The reason to carry out the calculations beyond the blockchain is to ensure the chain scales billions of calculations in a second. Another goal is to achieve this with the least possible amount of chain updates. 

With Ethereum Plasma technology, nodes are not required to confirm all data as the next smart contract concludes. According to the Ethereum blockchain developers, the use of their Plasma technology allows transactions between trusted nodes. You can use the Plasma technology without referring to the main block, and you can execute it in a variety of projects. Cryptocurrency exchanges, blockchain systems, and decentralized social networks can use Plasma technology to improve pace and protection parameters. 

Ethereum plasma technology is a second-layer scaling solution for growth. It is likely to become the second fully deployed scaling solution on the Ethereum mainnet, only behind state channels. Plasma is a framework that gives developers the opportunity to create child blockchains that use the Ethereum mainnet as a layer of trust. The Plasma technology enables child chains to be designed to meet specific use cases; especially those not currently feasible on the Ethereum blockchain. All decentralized applications that require users to pay huge transaction fees are best suited for Ethereum Plasma. 

What are the key features of Ethereum Plasma?

The Ethereum Plasma is made up of the following elements:

How Does Plasma Technology Our Work?

Ethereum plasma aims to establish a framework of secondary chains that will rarely communicate and interact with the main chain. The main chain is the Ethereum blockchain system. This Ethereum plasma framework is built to function as a blockchain tree. The blockchain tree is arranged hierarchically to ensure smaller chains are created on top of the main one. 

These smaller chains are also called Plasma chains or child chains. It is vital that note that Plasma chains are similar to sidechains, but they are not the same thing. The plasma structure is built using smart contracts and Merkel trees, thus enabling the creation of an unlimited number of child chains. These child chains are smaller copies of the parent Ethereum blockchain. More chains can be created on top of each child chain, giving rise to a tree-like structure. 

Generally, every child chain is a customizable smart contract designed to work singularly, serving different needs. The implication is that the chains can coexist and still be operating independently. In the end, Plasma will enable companies and businesses to implement scalable solutions in various ways. 

Therefore, the successful development and deployment of Ethereum Plasma technology will ensure the main chain will be less likely to get congested. Each child chain is designed to work in a distinct way to achieve a specific goal. These goals are not necessarily related to the goals of the main chain. In essence, child chains would reduce the overall work of the main chain. 

How Stellar Architecture works? Read here

Ethereum Plasma Architecture  

The Ethereum Plasma constitutes blockchains in a tree-like structure, and each is managed as a separate blockchain. An enforced blockchain background and MapReducible calculations are embedded in Merkel proofs. By reframing a block into a child blockchain supported by the parent chain, users can achieve a broad scale application. The implication is that there will be reduced trust in the root blockchain presence and accuracy. 

Ethereum Plasma Architecture
Ethereum Plasma Architecture

All blockchain calculations are framed into a community of MapReduce structures. They also include an additional way to execute Proof-of-Stake token linkage ahead of preexisting blockchains. However, it comes with the conception that Nakamoto Consensus Drivers discipline with block any restraint. This is guaranteed by implementing a smart contract on the root blockchain using the Proof-of-Fraud method. 

In the Ethereum Plasma architecture, the decision to ensure correctness typically depends on all participants testing the chain. Participants must thoroughly check each block to ensure accuracy before they can be considered. A temporary obligation is used to create a reliable bond so that the claimed data is subject to a controversial period. Within this period, participants are allowed to ensure the data conforms with the state. 

Plasma technology also provides a framework that allows participants to enforce consequences. However, it can only happen if an incorrect state is claimed. The proof model enables interested participants to claim ground truths to non-interested participants on the parent blockchain. This architecture is used for both payments and commutation; thus, making blockchain the decision-maker for contracts.

How Secure is Plasma Technology 

Fraud proofs secure all communications between the child chains and the main chain. Therefore, the root chain is responsible for maintaining the security of the network and punishing malicious actors. Each child chain has a specific mechanism for validating blocks. Fraud proof ensures that users can report dishonest nodes in case of any malicious activity. Users can also protect their funds and exit the transaction whenever there is malicious activity. The fraud proofs are mechanisms that allow a plasma child chain to file a complaint to its parent chain to the root chain.  

Plasma employs the Ethereum blockchain as an arbitration layer, and users can still return to the root chain as a trusted source. The Ethereum main chain is linked to child chains through root contracts. These root contracts are smart contracts on the Ethereum blockchain. 


The Ethereum Plasma has all it takes to enhance the scalability of blockchain systems. At the moment, the Plasma protocol is still under test. However, experts who were part of the test noted a high throughput of up to 5,000 transactions per second. The implication is that increase in the number of projects on the Ethereum platform will not be correlated with network transaction delays.  

Also learn about Optimistic Rollups in our article.

Stellar Architecture: How It Our Works


Stellar is an open-source protocol that allows users to exchange money or tokens using the Stellar Consensus Protocol. The Stellar architecture supports a distributed ledger network that connects banks, payment systems, and individuals. The goal is to facilitate low-cost and cross-asset transfers of value.

Stellar's open-source payment technology possesses a few similarities with Ripple, a real-time gross settlement currency used for remittance and payments. Jed McCaleb, the co-founder of Ripple, and Joyce Kim are the founders of the Stellar network. At first, both Ripple and Stellar shared the same protocol. However, when Stellar created the Stellar Consensus Protocol (SCP), it resulted in foundational differences between the two platforms. The SCP made Stellar an open-source system, while Ripple remained a closed system. 

Stellar has a native asset called Lumen (XLM), which powers the Stellar network and its operations. This article will provide you with a deep dive into Stellar architecture and how it works. 

The Basics of Stellar Blockchain

Stellar is a decentralized network distributed among interconnected nodes (servers) in the Stellar network. Using the Stellar Core, anyone can set up a verification node (server). Stellar Core acts as a backbone to the Stellar network. It is responsible for carrying out verifications using the Stellar Consensus Protocol (SCP). The Stellar Consensus Protocol serves as the algorithm to verify transactions on the Stellar network. 

Unlike the Bitcoin network, where miners verify transactions, the trusted nodes known as verification nodes run the Stellar Core and verify transactions. Therefore, the Stellar network consists of a series of Stellar Cores that work together to verify transactions and ensure everything is up-to-date. 

The Features of Stellar Blockchain  

Before we go further to explore the Stellar architecture, let's do a quick run-through of Stellar's features.

The Stellar smart contract is an open-source network for storing and moving money, whereas the Ethereum smart contract is an open-source network for decentralized applications. Ethereum is more decentralized and slower, while Stellar is less decentralized but faster. 

Stellar Architecture and How it Our Works

Nodes that help in the smooth functioning of the Blockchain and the ledger's publishing make the Stellar network. Before we go any deeper, let's do a brief overview. Let's say that Shinzo wants to send money to Nakamura. Shinzo lives in the United States, and Nakamura lives in Japan. Consider that Shinzo needs to convert from USD to Yen for Nakamura to receive and spend the money in Japan. The rigorous process resonates with a question- how will this transaction work?

Assuming Shinzo belongs to Bank "A" based in the US and Bob belongs to Bank "B" based in Japan. Both banks are connected to the Stellar network. Once Shinzo sends the $100 through his bank connected to the Stellar network, the transaction intent is sent to Bank B (on the same Stellar network) within seconds to ascertain if Nakamura is compliant or not. 

Immediately Bank "A" gets the green light from Bank "B," they deduct the funds from Shinzu's personal account. The USD will be moved to Bank "B" pool account and then moved into the Stellar network in the form of credits (Lumens), the native token of Stellar. Once inside, the network searches for the best exchange rate to use in order to convert the Lumens into Yen. The money will then be moved to Bank B's base account, credited to Nakamura's account. 

This is the general overview of how the Stellar network works. Now, let's go deeper into the architecture of Stellar. Different components make up the Stellar network. These components come together to ensure the network is up and running. These components include the following.

A Decentralized System

The Stellar system is decentralized and peer-to-peer. Therefore, there is no centralized entity that makes all the decisions in the system. 

  1. The Ledger System

The Stellar architecture incorporates an open ledger system. The Blockchain that acts as a transparent and open ledger system stores the transactions. All users on the network can look at the ledger and see all the transaction details. 

  1. Stellar Consensus Protocol  

Every decision carried out on the Stellar network is done through consensus. The process of reaching consensus on the Stellar network happens every 3-5 seconds. 

  1. Anchors And Credit

In the Stellar architecture, Anchors hold deposits and issue credits when they are required. They act as a bridge between different currencies and the Stellar network. The Stellar network is heavily dependent on Anchors. The work of the Anchors includes:

  1. Multi-currency Transactions

This is arguably one of the biggest features of the Stellar architecture. It means Shinzo can send his USD to Nakamura in the form of Yen. The beauty of Stellar is this seamless decentral forex. Transactions happen in many ways, but we will focus on the USD/EUR exchange for the sake of convenience. 

The Stellar network looks in the USD/EUR exchange to know if someone wants to purchase EUR for USD. If there is someone available, the transaction takes place instantaneously. 

The Stellar also searches for people looking to get USD in exchange for Lumens. They can connect the person to someone searching for Lumens in exchange for Euros and then ensure the transaction pulls through. 

However, if none of the conversions are available, the network can go through a conversion chain. Examples of such conversions include BTC/XLM, XLM/EUR, etc. 

The Aim Of Stellar Architecture

Stellar is designed to solve the following problems:


The Stellar architecture has made Stellar useful and valuable as a global exchange network. The Stellar network has the capacity to host thousands of exchanges between currencies and tokens. Although exchanging between crypto and fiat or vice versa can be expensive, Stellar makes it swift and cheap. 

Also Read Stellar Payment Network: Detailed-Explanation

Xord is a Blockchain development company providing Blockchain solutions to your business processes. Connect with us for your projects and free Blockchain consultation at https://

MultiChain Architecture Explained

The MultiChain architecture is an extended version of the Bitcoin Core; therefore, there is no distinction between them. Your ability to understand the fundamental design of MultiChain depends on how you understand the Bitcoin Core. You remember the analogy that "the apple doesn't fall far from the tree." That's exactly what exists between the MultiChain and the Bitcoin Core. Before we go further to explore the MultiChain architecture, let us have a look at the Blockchain technology itself. 

Blockchain is a distributed ledger that leverages cryptography and game-theoretic concepts to enable immutable transactions and automatics consensus of all parties involved in its maintenance. Over the years, Blockchain has evolved into a fast-developing technology, promising increased efficiency and security in virtually every industry, especially the use cases that primarily depend on all kinds of transactions. 

MultiChain Architecture 

Although the MultiChain architecture is akin to that of the Bitcoin Core, here is a basic architectural description of MultiChain. Also, the MultiChain has two main subsystems, which are the node and the wallet. While the node's job is to track the chain's global state, the wallet tracks transactions that are of specific interest to the node. The wallet also holds the private keys used to sign a transaction. Both the wallet and node employ different mechanisms for storing and retrieving information. 

The MultiChain is an extended version of the Bitcoin Core; therefore, there is no distinction between the two. Every node on the MultiChain platform has its API. This API can be connected to form an application. The chain also contains information permissions, assets, and streams. You can also have MultiChain connected to the same chain. The first few blocks on the MultiChain is referred to as a "setup phase". At this phase, a single administrator can bypass the voting process. The future versions of MultiChain could introduce a "super administrator" who can assign and revoke privileges without any consensus. 

Miners on the MultiChain network do not need to engage in proof-of-work. So, the MultiChain network uses a novel way to ensure miners trust decision making. This process refers to as mining diversity. It enables miners to process transactions to approve transactions in a random rotation. 

How Does MultiChain work?

The multiChain network sees miners as an identifiable set of "entities," and it introduces what refers to as mining diversity. This mining diversity binds 0≤mining diversity≤1. However, the effectiveness of a block on MultiChain can be verified through the following processes:

  1. By applying changes to a transaction and blocking permissions in the MultiChain network. Then count the total number of approved miners set in the block following the variations listed here. 
  2. Mining diversity increases the number of miners and round up to achieve left spacing—this action initiative into the effect, the round-robin schedule. The round-robin schedule is a preemptive process algorithm. Each process here has a fixed time to execute and is referred to as a quantum. Once any process is executed for a specified period, it is preempted, and other processes also execute for a given period. You can use context switching to save states of preempted processes. 
  3. In the round-robin schedule, the miners create blocks in rotation in order to generate a precise Blockchain. The criterion for mining diversity establishes the rigidity of the scheme. The "one" value ensures that each allowed miner is included in the rotation process. Meanwhile, "zero results" does not imply there is a restriction at all. 
  4. In MultiChain, the transaction fees and the block incentives are null by default. However, in the params.dat.file of the MultiChain system, you can mention this value. This file contains the whole configurations as listed below:

MultiChain Fork Solutions 

Private Blockchain

It controls who connects, read, and write on the chain

Customize Mining 

It configures diversity, the size of the block, and frequency.

The Pros of MultiChain Architecture 

Fault Tolerance 

The MultiChain architecture with a diversity set at zero (0) allows any miner (block-adder) to add a block to the chain. This process is very tolerant, although it increases the possibility of a small group of miners compromising the system. Meanwhile, that is an improbable task. With the diversity setting of one (1), once you add a block, you will have to wait until all other miners have added one block respectively before you can add another block. The system continues in this cycle, making it impossible for a single or group of miners to create a fork. However, if a node goes offline, no further blocks will be added while the network waits for that node to add the next block. With the diversity set, you can choose the balance between security and technical malfunction risk. 


Since each of the nodes on the MultiChain network independently processes all transactions, the supported rate of transactions per second is barely affected. More latency occurs as transactions and blocks make more hops to propagate the entire MultiChain network. 

The Configuration of Blockchain in MultiChain

In a configuration file, MultiChain allows you as a user to set all the Blockchain parameters mentioned below:


The MuliChain architecture is designed to keep the Blockchain's visibility within the chosen participants. This helps to avoid confusion and ensures stability and control over which transaction exists. MultiChain Blockchain model only transacts the accounts validated to the participants of the chain.

Also read Hyperledger Fabric Architecture: A Deep Dive

Xord is a Blockchain development company providing Blockchain solutions to your business processes. Connect with us for your projects and free Blockchain consultation at https://