Matic Network is a namesake Layer-2 solution, which is designed to make use of side chains to achieve scalability for off-chain computation. This is done while ensuring security using a decentralized network of Proof-of-Stake (PoS) validators within a Plasma framework. MATIC is the ERC-20 token used on the Matic Network.
This guide will explain what Matic Network is all about, the purpose it is designed for, the team behind it, the way it works, and the various uses and applications.
What Is Matic Network Designed For?
While cryptocurrencies and smart contract platforms built using blockchain tech have garnered mass attention, they still have not been able to achieve mass adoption. This is mainly due to user experience issues and scalability problems. Some of the most advanced and widely used platforms, such as Ethereum, are also not ready for mass adoption.
This is where Matic Network comes in. This platform is scalable, secure, and instant. It helps by providing desirable transactions on the Ethereum blockchain using a Proof-of-Stake network and Plasma side chains.
Who Is The Team Behind Matic Network?
Matic Network is co-founded by Jayanti Kanani, Sandeep Nailwal, and Anurag Arjun. Kanani is the CEO and also a contributor to WalletConnect, Web3, and Plasma. Nailwal is the current COO and has experience as the previous CEO of Scopeweaver and CTO (Ecommerce) Welspun Group. Arjun is the CPO and was previously the AVP (Product Management) at IRIS Business. He has also done stints at SNL Financial, Dexter Consultancy, and Cognizant Technologies.
How Does Matic Network Work?
Matic Network works by using a Block Producer layer that effectively solves the low transaction throughput problem. Block producers allow the system to create blocks at a faster rate. Decentralization is ensured using PoS checkpoints that are pushed onto the Ethereum mainchain.
A dual strategy of Block Producers at the block producer layer and Proof-of-Stake at the checkpointing layer is used, which achieves faster block times and ensures a high degree of decentralization. Finality on the main chain is achieved using checkpoints and fraud-proof mechanisms.
Fraud Proofs on the main chain are also provided to enhance the security of the Matic Network transactions. This mechanism allows users to submit details of those transactions on the main chain that are suspected of being fraudulent.
What Are Current and Future Applications of Matic Network?
Matic Foundation is dedicated to providing a user-friendly and scalable ecosystem for all third party Dapps to thrive upon. Grants and funding to third party Dapps developers shall be awarded by way of MATIC token. Various use cases can be built atop the Matic Network.
Some of these are:
Payments: An interface shall be provided by Matic Network for users, to connect with merchants and accept payment in crypto.
Atomic swaps: Matic smart contracts shall allow users to pay through a preferred crypto token. Conversions shall be handled by Matic through atomic swaps between cross-chain cryptocurrencies.
Liquidity: Matic Network can be used by third parties to exchange tokens by leveraging 0x liquidity pool or another while transferring crypto assets.
Decentralized Exchange (DEX) and Marketplace support: Matic Network is going to have all the support and benefits of a regular exchange platform. They shall allow for faster and cheaper trades. The Network can support other decentralized exchanges and enable trust-less, easy, and reliable crypto trades.
Lending Platform: A lending platform shall enable merchants to assess whether connected users are creditworthy or not. They shall be able to deduce this by looking at their transaction history. Based on this deduction, the merchants shall decide whether to lend tokens when they face insufficient funds. Dharma protocol is used by the Matic Network to enable the tokenized debt to users.
Games: It is expected that games would become a big part of the present Matic Network. Most of the Dapps are expected to be in the games category. Their in-gaming assets are represented as NFTs (ERC721). These are expected to be purchased, sold, and traded in large quantities on their side chains.
A product ecosystem is being built by Matic Foundation to include mobile apps, desktop wallets, and browser extensions. This will allow users to transfer, pay, and hold crypto assets without having to worry about the underlying system’s complexities.
They are also working towards developing a suite of tools for developers, like:
Hermione, a realtime, scalable, and modular Ethereum data processor
Dagger, which is a real-time notification engine made specifically for Ethereum events
The Matic team is an active contributor to WalletConnect protocol implementation. These benefits contribute to the overall growth of the platform.