In the world of cryptocurrencies, those projects that address recurring issues and aim to simplify interactions between users or developers and networks, platforms and ecosystems make an immense contribution towards mass adoption. The vast potential of smart contracts, for instance, is widely underutilized due to a lack of user-friendliness and scalability. Not even the most popular platforms, such as Ethereum, have seen any of their DApps reach such a significant status. Transaction throughput is indeed often improved at the expense of decentralization. Other projects fail to take into account the needs of the ever-growing developer communities such platforms possess. Matic Network (MATIC) positions itself as a solution to address scalability and usability issues without sacrificing decentralization or the imperatives of developer ecosystems and communities.
Our Matic Network Guide tells you everything you need to know.
The Matic Network Cryptocurrency: Introduction and Definition
Matic Network news has reflected how relevant its Layer-2 scaling platform has become. Its success rests on what this technology allows the Matic Network to provide, namely simplifying blockchain-related interactions without upgrading the basic layers of said blockchains. To achieve this, Matic Network (MATIC) uses the Plasma framework and effective sidechains all while maintaining optimal security levels thanks to a network of Proof of Stake (PoS) validators. In practice, the system targets a number of problematic areas that more traditional models fail to solve by improving mass adoption potential.
Decentralized Apps want to offer more smart contract-based solutions, but the limitations of current blockchain platforms prevent adequate user experience and therefore mainstream adoption.
Slow transactions, for instance, are an issue many protocols have to face due to a lack of active nodes, block size restrictions or how long it takes for each block to be generated.
High transaction fees are another factor that greatly hinders user experience yet may not be circumvented because validators need to be rewarded for their participation. Ethereum, as various blockchains do, charges gas fees for every transaction that takes place on its network.
As for the transactions themselves, low throughput is a frequent issue which has to do with the lag time public blockchains have to maintain with regard to intermediate block production. Block size is another caveat, as it needs to be small enough to avoid impeding propagation through the network. Therefore, blocks can only accommodate a certain number of transactions.
General scalability constitutes another recurrent challenge which, failing to be addressed, would overturn the very concept of decentralization.
Finally, usability, convertibility, on-chain trade and micropayment channels are all poised to become non-negotiable parts of a well-rounded decentralized blockchain offer.
Matic Network (MATIC)’s decentralized platform allows main chains to provide faster, cheaper and more user-friendly transaction solutions while addressing all these issues.
How Does Matic Network (MATIC) Work?
Fast and low-cost, the Matic Network utilizes the Plasma Framework, which is a scalable smart contract solution. To address transaction throughput, blocks are produced thanks to a high-speed Block Producer Layer which uses PoS checkpoints. This allows Matic Network (MATIC) to achieve a theoretical rate of 2¹⁶ transactions on just one chain.
Using Matic involves making a crypto asset deposit on the main chain through a Matic contract. Once the deposit is confirmed, the tokens appear on the Matic chain via a “bridge” function. Thanks to the Dagger tool, all events are detected in real time and recorded. Providing a mirror image of the main chain, the Matic chain allows users to interact with their tokens at incredible speeds (since its block time is 1 second or less) and the fees are practically non-existent. After the operation, the remaining funds may be withdrawn from the main chain. The Matic chain lets any fungible crypto asset be assimilated as an ERC20 token. This means that the system will work is many cases. Plus, Matic Network (MATIC) supports such non fungible tokens as ERC721 / NFTs.
Thanks to a dual strategy involving checkpoints proposed by Stakeholders and a PoS system coupled with a block producer layer, faster block times are achieved without compromising on decentralization. The checkpoints, together with fraud-proof procedures, are used to establish consensus.
In practice, proposers create checkpoints by validating all the blocks on a given layer and generating a Merkle tree out of the block hashes accumulated since the previous checkpoint. The Stakers then sign the Merkle root, other stakeholders ensure the proof is valid and they finally approve the new block by applying their own signature. At least two thirds of these stakeholders need to give their approval for each new header block to be added to the root contract.
The Matic system also provides proofs of burn, proofs of fraud (enhancing transaction security) and multi-chain support.
The MATIC Token
As most crypto projects do, Matic Network (MATIC) comes with its own proprietary token: MATIC. The latter serves as a unit of payment on the Matic Network and can play a part in the operation of its ecosystem. Lastly, token holders can make contributions in the form of MATIC to keep the system evolving.
Following a completely new lottery format, Matic Network held a token sale on April 24, 2019, using the Binance Launchpad platform. 1.9 billion tokens were sold, raising $5 million.
Why Use Matic Network?
Matic Network (MATIC) users can benefit from a convenient ecosystem made up of mobile applications, a selection of desktop wallets and handy browser extensions, all contributing to a flawless user experience. This allows them to seamlessly switch between platforms and pay for goods and services, carry out transfers and hold assets in a variety of cryptocurrencies.
As for developers, Matic Network puts a whole range of tools at their disposal, such as Dagger (a real-time Ethereum event notification engine) and Hermione (a real-time Ethereum data processor).
The practical features Matic offers make it an ideal ecosystem for third party decentralized applications. Thus, developers are encouraged to create payment solutions using the interface, including through atomic swaps or by leveraging 0x liquidity pools and other liquidity providers.
Matic Network (MATIC) also works as a decentralized exchange whose performance is on par with the most efficient centralized DEXs, thanks to its high throughput and low wait times.
As in-game currencies, digital collectibles and assets gradually become the norm, gaming networks will need to offer gamers a means of actually owning these holdings instead of having them stored on the platform itself. Matic can supply excellent solutions for these highly targeted imperatives.
Personal data, identity verification, lending and credit scoring and many more use cases are also on the horizon.
How to Buy MATIC on Bitit?
Purchasing MATIC will often require you to have Bitcoin (BTC) or Ethereum (ETH) to trade with as few platforms support credit cards, or even fiat currencies at all. In addition, DEXs can be great tools for more seasoned traders, but if you are just looking to acquire MATIC tokens for yourself, you may find their interface unnecessarily cumbersome.
Bitit was created to make buying cryptocurrencies quick and simple. No complicated registration process, no need to already have crypto in order to get crypto! Just head to Bitit’s Dashboard and check the real-time conversion rate for Matic Network (MATIC) against your own fiat currency (EUR, USD, GBP, etc.). You can then create an account in a few, uncomplicated steps and place your order as you would from any other e-commerce website. Bitit supports credit and debit cards, cash payments and bank transfers.
Your tokens are sent to your wallet of choice a few minutes later.
How to Store MATIC?
One of the advantages of Matic Network is that, as an ERC20 token, MATIC can be stored on a wide variety of desktop, online and mobile wallets (including Trust Wallet, Atomic Wallet and MyEtherWallet). The safest option, however, remains hardware wallets, such as the Ledger Nano S or the Trezor.
Matic Network (MATIC) does offer its own solution, featuring a WalletConnect integration which allows it to communicate with DApps directly. The private keys are stored on your mobile device and the Matic Network support enables token transfer management on Ethereum as well as on Matic side chains.
Convenient, forward thinking and transparent, the main drawback of Matic Network is perhaps that it is not as widely known as it would be necessary to fully harness its potential. Yet, the constant improvements, new partnerships and additional relevant use cases contribute to making Matic Network an increasingly convincing actor in the crypto world.