Repeated Game Assumption

For all cryptoegraphic protocols such that uses trusted entities within its construction

There exists a protocol which is named Plasma

Plasma is a blokchcain transaction offloading protocol which guarantees the safety of the state transition via verifying state validity only when the malicious computation is done on the trusted third party (Plasma chain Operator/the operator), and thus the parental blockchain data propagation and processing are to be mitigated via the netting-ish concept.

The operator can be either a legal entity or an identfied individual(And thus they are explicitly sharing their physical address, bank account, and so on) or anonymous entity.

Where the operator is a legal entity

The fraud of the operator is to be legal matter depends on the terms and condition.

The bad behavior of the operator is to be rumored soon then to be panished.

Do some fraud in Mexico, and then try the same scheme in Japan again, it has to be quickly detectable.

Under this assumption:

Plasma is a safety guaranteed protocol and so it doesn't have to be regulated.

The operator is able to be trusted and able to cooperate in order to improved customers' experience

such as

when a user losts one's secret key, the opearator can try exit and sulvage the asset into the preregistered customer's address directly. This isn't custodial process.

when a user mistakenly sent an asset to malformed address, the operator can do the same,