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Crypto Terms:  Letter Q
Jul 07, 2023 |
updated: Apr 02, 2024

What is Quasar Smart Contract (OMG Foundation)?

Quasar Smart Contract (OMG Foundation) Meaning:
Quasar Smart Contract (OMG Foundation) - Quasar Smart Contract – a smart contract that solves problems on layer 2 blockchains.
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Let's find out Quasar Smart Contract (OMG Foundation) meaning, definition in crypto, what is Quasar Smart Contract (OMG Foundation), and all other detailed facts.

The Quasar Smart Contract (developed by OMG Network) addresses one of the most significant issues faced by layer 2 blockchain projects – the fact that moving assets from layer 2 to layer 1 takes about 14 days.

To overcome the issue of layer 2 blockchain scalability, OMG Network employs its Plasma layer 2 scaling solution. Note that they improved their Plasma solution so they could transform it into Quasar.

Besides, keep in mind that every layer 2 blockchain that incorporates fraud proofs is affected by the 'exit period challenge'. OMG Network is no different, however, their Quasar Smart Contract method allows for a 'fast exit.'

Why Are Layer-2 Solutions Important?

A few of the problems that layer 2 blockchains (such as the Ethereum blockchain) face are high transaction fees and extended waiting period. By processing transactions on a second layer, some projects hope to solve this underlying problem. Within the umbrella of layer 2 solutions, Plasma is one of five options.

Plasma contains several copies of the main chain that coexist. Thousands of transactions are handled by these subsidiary chains before they are bundled and sent back to the main chain as a single transaction. A child chain is a non-custodial, trustless chain in which users own their funds. They can go to the most recent accurate snapshots of the plasma chain to reclaim their tokens if there are any exploits or mistakes.

At a fraction of the cost of previous technologies, plasma layers offer a high throughput of over 1,000 transactions per second. A trade does not have to be made with a certain number of well-known companies or individuals because there is always an opportunity for flexibility. Plasma solutions are suitable only for transactions and swaps, so they don't support smart contracts properly. Plasma layers are used in two projects: Polygon and OMG Network.