The Matic Network has caused an impact on Ethereum-based Dapps, claiming to solve the issues of scalability and support. Will MATIC succeed where other projects fail to scale?
Ethereum still is the largest smart contract platform today, despite its notorious scaling issues and its inability to support large-scale DApps.
There have been some efforts from projects like Raiden, OmiseGo, and Loom to try to improve these issues but it seems only one has made a real impact so far: the Matic Network (MATIC).
In simpler terms, Plasma is an off-chain blockchain scaling solution, where a network of child chains is created on top of the main blockchain. Each child chain is a blockchain in itself, with its own consensus mechanism.
Transactions between two nodes are handled within the side chain, and only the final state is broadcasted to the main chain, saving a great amount of processing power and memory for the chain’s participants.
Matic’s off-chain scaling approach is referred to as a Layer 2 scaling solution.
While most other off-chain solutions support only off-chain payment transactions, Matic has the capability for the off-chain smart contracts as well and Matic has claimed to reach 10000 TPS on a single sidechain in their internal testnet, making Matic a vital solution for DApps which are looking for high scalability.
MATIC’s focus on DeFi and Gaming
Matic has been working hard at scalability solutions that apply to areas like DeFi and gaming.
Matic is working with Dapps that require UX akin to conventional applications. For these Dapps, smoothing the interface to reduce lag and transaction costs is crucial. Matic is explicitly designed to give such applications a boost, and many projects are taking notice.
Matic partnered with blockchain-oriented gaming projects Battle Racers (housed in Decentraland – another project for which Matic is providing scaling infrastructure) and Blockade Games. ChainGuardians, an NFT-oriented game, even hosted an NFT sale on Matic Network for their limited edition ‘Mudra’ NFT.
For Decentralized Finance (DeFi) projects on Ethereum are still pretty much catered to small communities of early investors and governance participants. However, things are likely to change should arbitrage and market-making strategies help the market mature to a level appealing to financial institutions.
With Matic, DeFi projects that begin to attract vast amounts of liquidity and users will focus on flexible, scalable solutions like Matic for a smooth experience.
In November 2019, Matic partnered with TROY, a prime broker specialized in crypto trading and asset management to devote R&D resources for layer two networks. TROY plans to utilize layer two solutions to cater to the high-performance demands of financial institutions.
In 2018, Matic partnered with MakerDAO, which recently extended to multi-collateral lending (Sai), and new doors open for developers seeking to build commerce applications that leverage the Dai stablecoin.
Complementing platforms like MakerDAO will only serve to attract more developers and users to Matic ultimately.
Matic Coin ($MATIC) – QUICK STATS
- Matic Network Price – $0.01556955
- Matic Network ROI Beta – 490%
- Market Cap – $39,664,029
- Market Cap Dominance – 0.02%
- Market Cap Rank – 84
- 24H Trading Volume – $21,347,603
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