Matic Network is developing a layer 2 blockchain solution. The team is focussed on building a scalability solution for the Ethereum blockchain. Scalability should be achieved through secure, scalable and instant Delegated Proof of Stake side chains. Through better scalability the gas fees should be decreased and the block confirmation speed should be increased. Both factors are necessary for mass adoption of decentralized applications and blockchain technology.
Matic is essentially building an adapted version of Plasma. Plasma in the context of Ethereum is a technology for off-chain transactions similar to Bitcoin’s Lightning Network. The security of these transactions is guaranteed by the underlying Ethereum blockchain.
What are the tokens used for and how can the token value appreciate?
Tokens on the Matic Network are called Matic tokens. Users can stake their tokens on a contract. This way they become a Staker in the Proof of Stake checkpointing layer and in exchange receive staking rewards. As the usage of the Matic Network increases, the market capitalization of the Matic token will increase consecutively.
How advanced is the project?
The teams seems to be working since 2017 on Matic and has completed the white paper. The project counts with a functional testnet and an alpha-Mainnet that works with Ethereum as a mainchain.
The Matic team includes three co-founders, four engineers, one researcher, one project manager and one community manager.
Jaynti Kanani is the co-founder and CEO of Matic. He counts with previous experience as a data scientist at Housing.com and several other software engineering roles. He holds a bachelor in IT from Dharmsinh Desai Institute of Technology.
Sandeep Nailwal is the co-founder and COO of Matic. He previously worked at a blockchain development agency and counts with experience in dApp engineering and design. He holds an MBA from NITIE.
Anurag Arjun is the co-founder and CPO (Chief Product Manager) of Matic. He has more than a decade of experience in product management and holds a Bachelor in Engineering from Nirma Institute Of Technology.
Esteban Ordano is an advisor of Matic and the founder and CTO of Decentralland.
Ari Meilich is another advisor of Matic and founder & CEO at Decentraland.
They have another advisor who is head of engineering, Wallet at Coinbase. Pete Kim is also the Creator of CipherBrowser and previously Co-Founder & CTO at Nitrous, Inc.
Matic plans to achieve 65,000 TPS (transactions per second) on a single Matic chain. Combining these chains under a sidechain tree architecture could achieve several millions of TPS.
Among the products that Matic plans to offer are the Matic wallet, payment APIs & SDKs and identity solutions. Matic’s focus for all of these products will be on UX (User Experience) which is currently lacking for mass adoption.
Matic uses a Proof of Stake consensus mechanism. For every few blocks on Matic, a proposer will be chosen among the stakeholders to propose a checkpoint on the main chain. The checkpoint will later on be included in the Ethereum main chain.
Strength and Opportunities
The Matic Network counts with a broad number of use cases including payments, atomic swaps, which enables users to pay with and receive any token they wish, decentralized exchanges, credit scoring through user’s past transaction history, and identity features.
A very interesting feature that Matic Network offers is the Zappier integration through Dagger for Ethereum. With this integrations developers can connect the Ethereum platforms with hundreds of popular applications which can potentially boost adoption among users and developers.
Weaknesses and Threats
No private investors have been announced so far which will make the process of a public token sale harder. Also there is only one advisor stated so far.
There are several teams that are building layer 2 blockchain applications focussed on scalability. Among them are Celer Network and Loom Network. The approach of these teams is very similar, but their stage is already more advanced.
Matic’s developing efforts are focussed on improving the scalability of Ethereum, the world’s leading smart contract platform by market capitalization. Scalability of Ethereum will remain one of the biggest constraints over the next years and hence Matic is not alone in this field. The platform who can deliver a solution for this problem may receive a substantial reward. Still, the token model of Matic is not yet fully proven. Also without credible private investors it will be difficult to create sufficient hype around the ICO.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.