The Rise of Stablecoin-Specific Chains: A Comparative Analysis of Plasma and Stable

Stablecoins are gradually penetrating the traditional financial sector and retail market, with their application scenarios continuously expanding. To support this trend of expansion, the support of new infrastructure is particularly important. Recently, stablecoin-related chains such as Plasma and Stable have attracted market attention. This article will conduct an in-depth analysis of these two projects, exploring their similarities and differences, as well as their potential impact in the stablecoin ecosystem.

Overview of Stablecoin Exclusive Chains

The design goal of Plasma and Stable is to achieve faster, cheaper, and more scalable stablecoin transfer functions. Their core concept is to attract liquidity from older networks that have low efficiency but still hold a large amount of stablecoins. Although there are some differences between the two, their similarities are more pronounced, especially with USDT serving as a core hub.

Both networks have integrated USDT0, which is an anti-fragmentation version of USDT that can be natively exchanged across different blockchain networks using specific technology. Currently, USDT0 is primarily based on the Arbitrum network and is expanding to emerging public chains. For end users, the experience is no different from that of regular USDT.

Plasma Explained

Plasma is built as a sidechain of Bitcoin, inheriting Bitcoin's security through an anchoring mechanism while maintaining its own independent consensus mechanism. This system is specifically designed for high-frequency trading and fast confirmations, making it very suitable for quickly transferring USDT. One of the main features of Plasma is that basic USDT transfers incur no GAS fees at all; its profit model relies on the GAS fee revenue generated from other operations within the network.

Plasma is fully compatible with EVM, allowing developers to easily deploy Ethereum applications. Users can choose to pay transaction fees using USDT or Bitcoin. The platform is supported by certain well-known exchanges and stablecoin issuers.

Stable Analysis

Stable adopts a different implementation scheme; it is an independent Layer 1 network that uses a self-developed Proof of Stake consensus mechanism. Similar to Plasma, Stable is also EVM compatible and offers zero Gas fee transfers for the USDT stablecoin. However, Stable only accepts USDT as the currency for Gas fee payments.

Stable has received support from certain important institutions and has hired industry renowned figures as advisors, demonstrating its focus on the circulation of USDT. In addition, Stable seems to be more focused on corporate and institutional clients.

Privacy Protection Policy

Both networks place a high emphasis on privacy protection. Plasma proposed the concept of Shielded transactions, while Stable adopted confidential transfer technology. These designs aim to protect transaction privacy while maintaining compliance.

Institutional-friendly Features

The Stable platform plans to add more institutional-focused features, such as:

1. Exclusive Blockchain Space Service for Enterprises: Providing exclusive blockchain space for enterprises to ensure stable transaction speed and prevent cost surges.
2. USDT Transfer Aggregator: Integrates multiple USDT0 transfers to improve processing speed and reduce transaction costs.

Market Positioning and Potential Impact

The core strategy of this type of proprietary chain is to target ecosystems with weak DeFi fundamentals for liquidity absorption. They aim not only to surpass the inefficient chain ecosystems but also to build a hub centered around USDT payments and commercial settlements. This may give rise to a new global payment system, specifically serving stablecoins, where stablecoin issuers not only issue currency but also become a dual cornerstone supporting the currency's value and its underlying infrastructure.

However, other blockchain ecosystems will not be forgotten because of this. Chains that focus on specific functions or application scenarios, such as Solana, Ethereum, and its layer two solutions, may continue to thrive.

Recent Progress on Plasma

Plasma has gained significant attention through its public token sale, with total subscriptions reaching $1 billion. In addition, Plasma has advanced several collaborations, including:

• Collaborate with USDT transfer service providers in Africa
• Connect the Turkish Lira with stablecoin to enable cross-border payments.
• Bring commodity trading on-chain
• Launching yield-generating synthetic USD
• Collaborate with multiple DeFi projects

Conclusion

The concept of "stablecoin chain" may be a marketing strategy aimed at creating a spotlight effect for USDT, and attracting users with the gimmick of zero Gas fees. Essentially, this is a free value-added model in the trading field. Both chains are ready, and how they will engage in differentiated competition, choose the best market channels, and whether they can create a sustainable business ecosystem will be the key points to watch.