Ethereum Plasma Cash Enabled International Trades

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This affects the speed of moving money indomestic and international market economies.

On October 24 at 20:30, Sergey Grybniak, founder of Opporty, visited Mars Finance Group to share on the theme of “international trading platform based on ETH Plasma Cash”

GuestCharles/McDonald’s(China)CIO CDO

Dialogue initiator: SergeyGrybniak / Founder of Opporty

– The money transfer time between businesses for international and domestic transactions can take from 1 to 5 business days, with the cost of international transfer usually around 40 USD.

– On average, contract enforcement takes from 490 to 1100 days,costing from 15 to 50% of the claim value, and taking up to 37 steps, depending on the country.

– Eighty percent of cases do not come to resolution at all because of the length, complexity and expense of the procedure.

This affects the speed of moving money indomestic and international market economies. For instance, it makes harder for small enterprisesparticipating in international activities, forcing them to deal through larger intermediaries.

All of the above factors affect business survival rates, impacting primarily SMEs, which are the backbone of all developed economies. Inefficiency of intermediaries affects the efficiency of the whole.

Q: Hello, Sergey. Please introduce yourself.

Sergey Grybniak, almost 15 yearsof experience in development and marketing of applications for enterprises of a different size in Central and Eastern Europe, North America and Asia.

Opporty is a company with 3 operational units which are New York, USA, business development and technology design, Shanghai, China, business development, and Odessa, Ukraine, research and development. As a member of Enterprise Ethereum Alliance we are exploring the opportunities of an applications for business transactions using blockchain technology including international trade. We use Plasma based side chains proposed by Joseph Poon and VitalikButerin in August, 2017.

We are exploring advantages of a blockchain for international trade. Chinese One Belt One Road project is currently biggest project in the world and it is directly related to the international trade. Infrastructure corridors encompassing around 60 countries, primarily in Asia and Europe but also including Oceania and East Africa, will cost an estimated US$4–8 trillion.

I would like to share some thoughts on blockhain implementations related to this initiative and to the international trade in general.

We are exploring such opportunities as a member of China Cooperative Trade Enterprise Association, and advised by Mr. Daniel Wu who is a Deputy Director of One Belt One Road Development center.

We are foreigners so it takes some time from us to get familiarwith the particular details on the local market but we closely cooperate with local partners. We are proud to be partner ofInfiniVisionin the fields of big data and blockchain integrations. Worth paying additional attention to OCR (Optical Character Recognition) which allows to digitize any document. With blockchain capabilities of doing tamper proof records there are potentially very interesting implementations for applications. Mr. Cai Dong personally advise us.

Q: As we know plasma was designed for Ethereum to solve a scalability problem. Is that correct? Can you tell us more about it?

The answer is yes and no. Plasma is applicable for Ethereum and able to solve a scalability problem. However even in Plasma Whitepaper they use term “root chain” saying directly that it could be potentially implemented on top of other root chains and not only for Ethereum.

“Plasma is a proposed framework for incentivized and enforced execution of smart contracts which is scalable to a significant amount of state updates per second (poten-tially billions) enabling the blockchain to be able to represent a significant amount of decentralized financial applications worldwide. These smart contracts are incentivized to continue operation autonomously via network transaction fees, which is ultimately reliant upon the underlying blockchain (e.g. Ethereum) to enforce transactional state transitions.” – Joseph Poon, VitalikBiterin, Plasma Whitepaper.

That means that potentially smart contracts and applications on Plasma could be “integrated” with other blockchain protocols. We are highly inspired of this idea of Blockchain Agnostic applications and smart contract. It will require significant cooperation with other blockchains because in the current state it is not possible to implement “as is”.  But we are already making steps in this direction and we believe that blockchains will be doing that as well because it will benefit each participant and industry overall.

Q: So Plasma allows building decentralized applications and smart contracts potentially able to work  not only with Ethereum but with other Blockchains. Are there something else you would like to share about it?    

Yes. Few things. First plasma allows to implement privacy and levels of access in building decentralized applications which allows them potentially “talking” to each other. Also ability towork with other blockchains is big vision.

Worth paying attention to Plasma Cash. This design pattern was proposed by VitalikButerin in March 2018. This approach has certain advantages before initial Plasma.

Plasma Cash is an enhancement to Plasma Protocol, which is imperfect due to limited scaling capabilities. Its drawbacks do not allow Plasma to support the exponential blockchain growth required to enable IoT.

Plasma Cash resolves issues of security and scalability, speeding up the process by eliminating the need to download entire Plasma blocks. Proof data is now only required for a user’s own coins.

Without going too technical Plasma Cash makes tokensindivisible and attaches to each one unique ID. It could work both with ERC-20 (fungible tokens most projects are using) and ERC-721 (non fungible tokens like the ones used for Crypto Kitties).

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