The world of blockchain and cryptocurrencies are currently dominated by a host of smart contract platforms and Dapps which have increasingly captured the attention of the general public. However, there are many factors that are impeding its mass acceptance, such as scalability and user experience issues. The most successful and widely used smart contract platform, Ethereum, also faces a number of lingering issues that need to be solved.
To address such shortcomings, Matic Network is developed as a layer 2 scaling solution, designed to achieve scalability through the use of sidechains for off-chain computation. It also ensures asset security, by utilizing the Plasma framework along with Proof-of-Stake validators.
How Does It Work?
Matic Network aims to overcome problems plaguing the existing dapp ecosystem. For instance, for a currency which gains favor running on the Ethereum network, it will invariably jam the network as the traffic increases. This will also increase the Gas fees on average for each transaction. Here Matic Network would provide the much needed solution to this problem, through the following 4 steps.
- Users first deposit their cryptocurrency assets, in the Matic contract on the main chain.
- The corresponding tokens get reflected on the Matic chain after the deposited tokens are confirmed on the main chain.
- Token transferring can be done almost instantly with negligible fees. This is because of Matic Network’s fast block creation, with the transfers happening almost instantly.
- A user can then simply withdraw the remaining tokens from the main chain, once they’re ready. This can be done by establishing proof of remaining tokens on the Root contract.
The above method works for any token ERC20 tokens.
The Matic foundation aims to provide promote several basechain Dapps, such as NEO and EOS in the future. It also aims at awarding grants and funding for third party developers as an incentive to build various use cases.
As mentioned before, the current blockchain ecosystem is plagued with scalability issues especially when the demand is high. The issues of slow block confirmations, block size limitations and computations, need to be solved if mass adoption is the main aim.
Thus, the Matic Network aims to solve the following problems in the blockchain ecosystem.
- High Transaction Fees: Because of the ever-expanding number of cryptocurrencies being added, transferred and sold almost daily, the cost of transaction fees increases significantly. This is because every decentralized application issues its own tokens and has its own economy, with Ethereum gas fees thus varying in each case. These fees vary significantly, depending on the pending transaction pool and the limited block size.
- Low Transaction Throughput: To ensure ample time for block propagation, public blockchains tend to maintain an amount of time lag between each block production. The block size is also required to be lower, so that quick propagation of blocks is permitted. This limits the number of transactions in a particular block.
- Scalability Issues: Blockchain networks are made of blocks, which must be validated by multiple nodes. Each node is required to manage a copy of the state and all blocks. Maintaining and validating the whole blockchain becomes more difficult, as the chain size increases every day.
- Multiple Micropayment Channels: Opening and managing channels with multiple Dapps or users can be complex, which hinders the fast and convenient way of mediating payments over channels.
- Usability: Normal users have a tough time navigating through the current system put in place. For instance, users require Ether (ETH) and are required to pay GAS if they want to spend their tokens.
- Slow Transactions: Blockchain transactions have variable transaction times, with most setting a limit on the block size. For a transaction to get validated, it must wait for multiple block confirmations.
Who Are Matic’s Competitors?
Matic Network is different than the other projects mentioned such as Celer Network. For example, Matic Network is based on a set of side chains which is backed by a PoS consensus, whereas Celer network is a state channel-based solution.
When comparing with Raiden network, where both sender and receivers are required to create their payment channels, Matic Network has an edge when it comes to usability. With Matic’s architecture, no channels are required to be opened and users simply require a valid Ethereum address to receive tokens.
Thus, Matic Network has the aim to build a perfect Dapp ecosystem. By using an account based side-chain with plasma security. This allows for a relatively easier migration from Ethereum to Matic network’s main chain.
Other Components of Matic Network
- Dagger: Dagger is a part of the infrastructure being built by the Matic Network for developers. It is basically a tool or engine to track Ethereum accounts and events in real time. Dagger allows developers to track their own smart contracts, accounts and transactions.
- Matic Wallet: Matic Network is also in the process of releasing a user-friendly plasma wallet.
- Matic Tokens: Matic tokens are the native tokens of the Matic network, it is an ERC20 standard compliant digital token , running on the Ethereum blockchain.
- MultiChain Support: The Matic Network also supports multiple side chains or horizontal sharding. This will allow businesses to have dedicated side chains connected to the public check pointing layer. This allows the business to retain the immutability, provability and security of transactions.
- Fraud Proof: Matic Network provides a ground-breaking new feature called Fraud Proof. It allows any individual on the Mainchain to submit transaction details which they deem to be fraudulent. On the success of the challenge, the stakes of the parties in the fraud are deducted, with the challengers receiving the deducted funds as an incentive. For users, this can serve as a high reward bounty program, for anyone who wishes to investigate the veracity of a particular transaction.
- Atomic Swaps: Smart contracts on the Matic network, would allow users to receive in any assets they prefer when they pay with a crypto token. It will provide atomic swap facilities between cross chain crypto-assets
Matic Network is well on its way in providing a scalable and user-friendly ecosystem for third-party applications. The token is ranked #144 by coinmarketcap, currently valued at $0.017668 at the time or writing. It has almost 21 tradable markets, spread across exchanges worldwide, such as Wazir X, Coinsuper, Coinbit, and BiteBTC.
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