Matic Network Review
Matic Network ("Matic" or "the Project") is a layer-2 scaling platform that enables fast, easy and secure off-chain transactions for not only payment transactions, but also generalized off-chain smart contract.
- Matic Network is a Layer 2 scaling solution that achieves scale by utilizing sidechains for off-chain computation, while ensuring asset security using the Plasma framework and a decentralized network of Proof-of-Stake (PoS) validators.
- Matic Network has been a significant contributor to the Ethereum ecosystem having worked on implementations of Plasma MVP (Minimum Viable Plasma), WalletConnect protocol and the popular Ethereum event notification engine - Dagger.
- Many projects are already building apps & integrations with Matic.
- Matic launched its first testnet in September and has an advanced pre-mainnet version of the network ready internally.
- Matic will soon launch an extremely user friendly Plasma wallet with native WalletConnect support to interact trustlessly with dApps and services across devices.
Key Features & Higlights
- Scalability: Fast, low-cost and secure transactions on Matic sidechains with finality achieved on mainchain and Ethereum as the first compatible Layer 1 basechain
- High Throughput: Achieved up to 7,000 TPS on a single sidechain on internal testnet; Multiple chains to be added for horizontal scaling
- User Experience: Smooth UX and developer abstraction from mainchain to Matic chain; native mobile apps and SDK with WalletConnect support
- Security: Matic chain operators are themselves stakers in the PoS system
- Public Sidechains: Matic sidechains are public in nature (vs. individual dApp chains), permissionless and capable of supporting multiple protocols
What is Matic?
Matic's mission is to create a plasma-influenced Layer 2 scaling solution to enable throughput capable of meeting the transaction demand for mass adoption of dApps.
Matic is unique both in terms of its technical approach towards Layer 2 as well as its potential support for variety of use cases.
- Matic Layer 2 is an account-based variant of MoreVP (More Viable Plasma). The Plasma framework is used to guarantee the security of assets on the main chain (such as ERC-20 and ERC-721 tokens for Ethereum), while generic transactions are secured by a Proof-of-Stake network, built on top of Tendermint. Matic sidechains are essentially EVM-enabled chains and are conducive to ready deployment of solidity smart contracts, essentially making it an easy tool for Ethereum Developers to use it for scaling their dApps/Protocols.
- Commercially, Matic sidechains are structurally effective for supporting many Decentralized Finance (DeFi) protocols available in the Ethereum ecosystem.
- Matic’s core philosophy is to enable dApps to compete with the user experience that is offered by centralized apps today.
- Ethereum is the first basechain Matic Network supports, but Matic intends to offer support for additional basechains, based on community suggestions and consensus, to enable an interoperable decentralized Layer 2 blockchain platform.
Matic Token Ecosystem
- The Matic token is used to stake in order to participate in the Proof of Stake consensus mechanism of the network of sidechains.
- The Matic token is also used to pay mining rewards to the POS stakers and any transaction / gas fees.
- Each time a transaction happens, a small percentage of transaction fees will be kept and reserved in-protocol to support the projects building for enhancing Matic Ecosystem and will be disbursed using on-chain governance.
Token Governance & Use of Funds
As of 26 February 2019, Matic Network has used approximately 7% of TGE funds according to the allocations below:
- 1% Partnerships
- 9% Marketing
- 15% Legal
- 75% Technical Development
Treasury & Strategy
As per their risk management strategy, Matic plans to perpetually hold sufficient fiat reserves to fund their operational costs for at least 12 months. The rest of any funds held in crypto will be stored in cold wallets with multisig support.
MATIC Token Release Schedule
The following chart represents the number and breakdown of all MATIC tokens that are intended to be released into circulation on a monthly basis.
Token Overview & Use Cases
The MATIC token has three key use cases:
- Participating in the Proof of Stake consensus: Matic sidechains enforce consensus using a Proof of Stake (PoS) layer in which network participants stake Matic tokens in order to participate as validators.
- Paying for the transaction fees in the network: The transaction fees on Matic sidechains are paid in MATIC tokens. The more users onboard to use the apps on Matic Network, the more the transaction volume and hence the transaction fees.
- Having taken inspiration from Livepeer and its "protocol funding the ecosystem" model, Matic intends to enable a separate staking mechanism for supporting the ecosystem projects. This will help create a fund out of the "block rewards" that can help support developers working on features and dApps needed by the network to get a part of block rewards. This mechanism is funded by reserving a percentage of the transaction fees in-protocol to support the projects building for enhancing Matic Ecosystem.
Matic’s main community focus has been to attract more and more dApp developers to build on the network. Thus, Matic wants to build a developer community, and tap into the immense potential of developers who have yet to dive into crypto. In order to achieve this, Matic is collaborating with top universities in India and the rest of the world to ensure that budding developers are aware and use Matic as a platform to scale their dApps.
Matic’s primary geographical focuses are detailed as below:
- India - India - Matic has sponsored, mentored, and judged several hackathons in India such as ETHIndia, and also organized a DApp training course in India’s leading engineering institution IIT Bombay that introduced 80 developers to building and maintaining decentralized applications. The team has continued to support and provide guidance to some of the projects from this cohort. Matic has also addressed students at blockchain events at institutions such as IT Mumbai, IIT Roorkee, and NIT Surat.
Matic team was also a sponsor and part of the judges panel at ETHIndia that was held in Bangalore and at ETHSIngapore.
- US & China - Given these geographies are centres of the blockchain development, they are strategically important to Matic as a significant percentage of current blockchain developers are based out of these areas. Matic plans to have developer outreach hubs based out of SF and Hong Kong along with working spaces to spur innovation and development on the Matic platform.
- Japan - Matic is fairly connected with the Plasma research community in Japan and is also working to raise awareness in the local community. Matic intends to build a sizeable developer base in Japan specifically related to enterprise use cases.
- Germany - Chainbreakers is a German team developing an RPG game on Decentraland. They have announced that they will be using Matic Network for their scalability needs. Matic plans to hire from the vibrant blockchain development community based out of Berlin and also are exploring the feasibility of having a development center in Berlin.
- United Kingdom - Matic is collaborating with a decentralized exchange from the UK to help them explore moving to Matic sidechains to boost trade processing speeds and increase user adoption.
- Korea - Matic did an interview with KoreaCryptoSocial during a blockchain event in Seoul, but the team will add additional resources devoted to the Korean market after its Launchpad sale.
- Vietnam - Matic has started a local telegram group to engage the Vietnam community, organize developer meetups, and establish university connections.
- Thailand - Matic has a Thailand community group and plans to identify the universities and developer hotspots to collaborate with to spur blockchain development.
ETHIndia Mumbai Meetup:
- Before the ETHIndia Bangalore Hackathon, Matic organized a panel discussion with the Leading Blockchain Industry Leaders in India, followed by a hands-on workshop for Ethereum developers and blockchain enthusiasts.
- The team received 180+ registrations & 70+ devs attended workshop.
Matic & Ankr Network Mumbai Meetup:
- Matic Network presented alongside Ankr Network in Mumbai on 1st September, 2018. During the meetup, the Matic team presented a demo of the testnet Matic wallet featuring instant & low cost transactions with a convenient UI.
- The team received 50+ registrations & 20+ attendees were present.
- Skale Labs: Skale plans to run a network of sidechains called S-chains.These chains are run by Validators nodes which contain a number of containers. S-Chains utilize the Skale Parallel Asynchronous Consensus (SPAC), unlike the PoS consensus used by Matic Sidechains. Like Matic network, Skale plans to run its own version of EVM on its sidechains; however, Skale’s goal is to enable separate dAppchains, while Matic is designed to create "public sidechains" that can host any number of dApps.
- Plasma Group: Plasma Group wants to create an Open Plasma implementation that helps people deploy their own instance of an individual Plasma chain. Matic Network on the other hand is focused on building a permissionless, public Layer 2 Plasma based sidechain system where everyone can enjoy easy deployment of apps and smart contracts.
Matic Network Points of Differentiation
- ~1 second block times - enabling physical-world use-cases
- Plasma security for assets
- Public Chains capable of hosting multiple protocols, thus enabling interoperability and full scale DeFi solutions
- PoS based checkpointing layer provides finality and fraud proofs on main chain
- Ethereum based applications can be onboarded seamlessly & all Ethereum ecosystem tools are supported right out of the box