Quasar Smart Contract: Accelerating Off-Chain Transactions

The Quashar Smart Contract (Quasar Smart Contract OMG Foundation) is a smart contract from OMG Network to solve Layer 2 blockchain problems.

What is a Quasar Smart Contract?

The implementation of the Quasar Smart Contract is a solution to one of the biggest problems in layer 2 blockchain: it takes about 14 days to move an asset from level 1 into layer 2. 

OMG Network is using its Plasma second-tier scaling solution to solve the second-tier blockchain performance problem. The company has improved the Plasma solution into Quasar.

Layer 2 blockchains that use fraud proofing have an “exit period” problem. On the other hand, OMG Network also faced this problem. But its approach to Smart Contract development provides “quick exit”.

The need for a Level 2 solution

Two of three properties are characteristic of chains: scalability, decentralization and security. Scalability is inversely proportional to decentralization for a given level of security. As a result, there are tradeoffs to be made in blockchain. Transaction fees and long waits are a problem for Ethereum, one of the most popular blockchains. Other projects try to mitigate this fundamental problem by processing transactions on a second layer. 

Plasma is one of five participants in second-level solutions. In Plasma, multiple copies of the main chain are adjacent to each other. 

All of these child chains process thousands of transactions before combining them and sending them back to the parent chain. A child chain is a system where users own their funds. They can refer to the last accurate snapshots of the chain to recover their tokens when errors or exploits occur.

High-bandwidth layers have high throughput – more than 1,000 transactions per second at a lower cost for traditional technologies. There is no need to transact with a certain number of known companies or individuals; there is always room for flexibility. A plasma solution is only for transactions and swaps, but does not allow for full implementation of smart contracts.