Quasar Smart Contract (OMG Foundation)

A smart contract by OMG Network to solve layer-2 blockchain problems.

What Is Quasar Smart Contract?

Quasar Smart Contract is the solution to one of the biggest challenges faced by layer-2 blockchain projects; it takes around 14 days to move the asset to layer 1 from layer 2. 

OMG Network uses its Plasma layer-2 scaling solution to get past the issue of layer-2 blockchain scalability. It enhanced its Plasma solution to transform it into Quasar.

Every layer-2 blockchain that uses fraud proofs faces the ‘exit period challenge.’ OMG Network also faces the problem, but its Quasar Smart Contract approach enables ‘fast exit.’

The Need for Layer-2 Solutions

Chains can generally have two of the three properties: scalability, decentralization, and security. Scalability is inversely proportional to decentralization for a given level of security. As a result, trade-offs must be made in a blockchain. High transaction fees and extended waiting times are a problem on Ethereum, the most popular blockchain. Some projects aim to alleviate this fundamental difficulty by processing transactions on a second layer. Plasma is one of five different actors in the umbrella of layer-2 solutions.

Multiple copies of the main chain run alongside each other in plasma. These subsidiary chains handle thousands of transactions before bundling them and sending them back to the parent chain as a single transaction. A child chain is a non-custodial, trustless chain in which users own their funds. They may thus go to the most recent accurate snapshots of the plasma chain to recover their tokens if there are any mistakes or exploits.

Plasma layers have a high throughput of over 1,000 transactions per second at a fraction of the cost of traditional technologies. There is no need that a trade must be made with a set number of known companies or persons; there is always room for flexibility. Plasma solutions are only suited for transactions and swaps and do not completely enable smart contracts. Polygon and OMG Network are two projects that utilize plasma layers.