Matic Network is a scalable blockchain platform with a whole set of products and tools helping developers create decentralized apps. It implements side-chains for off-chain computation while relying on the Proof-of-stake (PoS) consensus algorithm and Plasma framework for providing the high level of the platform’s security. The project has already developed Plasma MVP (Minimum Viable Plasma), WalletConnect protocol, and the Ethereum event notification engine Dagger. The platform is powered by a utility token under the same name.
Matic Network explained
Matic Network names itself a blockchain agnostic Layer-2 scaling solution with the key goal to facilitate scalable, instant and secure transactions on the blockchain. Initially built upon the Ethereum Network, it adds Plasma-based side-chains on top of it to ensure asset security. In order to resolve the scalability problem inherent to Ethereum and all its derivatives, Matic Network provides Layer-2 solutions which in theory can help it process 2^16 or near 65,000 transactions per block. In addition, it eliminates the problem of interoperability via DEXs which would help users change cryptocurrencies based on different blockchains (for example, Bitcoin and Ethereum) directly between their own wallets.
Among other problems that are inherent to Ethereum-based projects and that Matic plans to overcome are block size limitations, slow block confirmation, and computations issues in smart contract-based blockchain platforms.
For developers, Matic has designed and rolled out payment APIs and SDKs and a number of other tools helping them create, launch, and migrate decentralized apps built on different platforms. Matic has also developed its own wallet with a simplified interface that can help its users interact with dApps without having to share their private keys.
Matic Network is not the only project in the blockchain industry to struggle with the scalability issue. Among its key competitors who develop Layer-2 solutions are Loom Network, OmiseGO, Proof of Authority Network, Lition, Liquid Network, and Rootstock. A number of projects work on implementing the side-chain solutions, too. These are the Lightning Network, Raiden Network, Celer Venwork and Liquidity Network. Cosmos and Polkadot develop a solution for the interoperability problem, and one also should keep in mind EOS, TRON, and Zilliqa that have resolved the scalability problem in their own way and are already widely used by developers.
The competition is pretty high, however, as Matic has already rolled out some Minimum Viable Products, it has good chances to gain its market share.
The platform is fueled by a native ERC-20 token MTX. This is a utility token and it has the following use cases:
Covering transaction fees. Any transactions occurring in the system will require paying the network fee which users will pay with the help of Matic.
Backing the Proof-of-Stake consensus. In order to validate transactions, nodes will have to stake MTX in the system. The rewards for validation will be paid in MTX as well.
Supporting the Protocol Funding Ecosystem. For every transaction, a small part of the transaction fee will be sent to the platform’s reserve which is used to support projects improving the Matic ecosystem.
Matic distributed its tokens via an IEO on Binance Launchpad on April 24-26th, 2019. During the IEO, 1.9 billion tokens were distributed out of the total supply of 10 billion helping the project raise its hard cap of 5 million USD. The rest of the tokens were allocated for the following purposes:
3.8% - private sale
16% - team
4% - advisors
12% - network operations
21.86% - foundation
23.33% - ecosystem
The project was founded by an India-based team in 2017. Jaynti Kanari is the project’s Co-founder and CEO. He holds a Bachelor’s degree at Dharmsinh Desai Institute of Technology and prior to Matic, he has worked as a Data Scientist for almost 3 years at Housing.com.
Another Co-founder and COO of the project, Sandeep Nailwal, holds an MBA in Technology, Finance, and Supply Chain Management from the National Institute of Industrial Engineering, one of the most prestigious educational establishments in India. He also was a Co-founder at another blockchain project ScopeWeaver.com.
The third Co-founder and CPO Anurag Arjun holds a Bachelor’s degree in Engineering and Computer Engineering at the Nirma Institute of Technology. Before Matic, he had worked for over three years as AVP (Product Management) at IRIS Business and founded the Dexter Consultancy firm specializing in Management Consulting.