What is Matic Network ? 2021 full presentation
Table of Contents
Introducing Matic Network
Matic Network is a blockchain project that aims to provide sidechain and offchain solutions to solve the scalability problems faced by many cryptocurrencies. At first, Matic focuses on Ethereum. The goal is to provide Vitalik Buterin’s blockchain with near-instant transactions.
Technically, Matic Network is an adaptation of Ethereum’s Plasma concept. But this is only a starting point for a project that intends to develop a whole series of offchain and sidechain solutions in order to remove the big obstacle that stands in the path of mass adoption of cryptos, namely scalability. Matic Network also aims to address the other big concern of this technology, namely a weak user experience. The project roadmap also includes cross-chain transfers. chains.
How does Matic Network work?
The Matic project is still young, but here’s how it works:
- The user transfers an asset(ETH or ERC-20 token) to the Matic contract of the Ethereum block chain
- Having done this, the tokens are in the Matic matrix thanks to the Matic Deposit bridge
- The user can now transfer his tokens to anyone almost instantaneously (the blocks of the Matic Chain sidechain are created every second, or less)
- The user can transfer his tokens from the Matic Chain to the main ethereum block chain at any time
Matic Network Architecture – source matic.network
This concept will also be implemented on other block chains later on.
For Matic Chain, it uses two consensus systems:
- Proof of Stake for transaction validation
- Block Producers, which are peer-elected stakers for the production of new Other projects offer faster transactions than Ethereum,but at the cost of higher centralization. With this architecture, Matic Network believes it can meet the two criteria of decentralization and speed of transactions..
What to remember about Matic Network
Matic Network is a project that offers scaling sidechain and offchain solutions (currently on Ethereum)to address the as yetunresolved problem of blockchain scalability. Its MATIC homemade token is used to staking and pay transaction fees on its Matic Chain sidechain.
Matic Network, the solution to Ethereum congestion?
In recent months, the explosion of decentralized finance (DeFi) has not been inconsequential. Since most protocols are based on Ethereum, the blockchain was very quickly overwhelmed by a large number of transactions that it was unable to manage smoothly.
Thus, fees on Ethereum have skyrocketed, making the use of a decentralized exchange (DEX) like Uniswap very expensive for users. Although the situation has calmed down, the decentralized finance sector is being held back by Ethereum’s technical limitations..
It is for these reasons that Matic Network appears as an alternative of choice, the network requiring much less fees for executing transactions, while being able to manage up to 7,000 persecond, compared to about 15 for Ethereum..
Matic Network is accompanied by the MATIC, a token that can be used to pay the user fees of decentralized applications built on the network.
In addition, the MATIC is eligible for staking, which allows you to delegate your tokens to network operation and generate rewards passively..
The platform Cex.io supports this very attractive investment option. I detail how to stack your MATICs in the rest of this article.
Where to buy Matic Network?
Matic Network is listed on about 20 cryptocurrency exchanges. Here are 3 suggestions for buying MATIC and investing in ethereum scaling solution:
- Binance: against BTC,, ETH, USDT or BNB (which you can acquire with your credit card). These are the MATIC pairs of Binance, one of the most popular cryptocurrency exchanges in the world
- IDEX: IDEX, the decentralized exchange exchange specializing in ERC-20 tokens, offers to buy Matic Network for Ether without your cryptos coming out of your wallet
- Bitrabbit: Bitrabbit is a relatively unknown Asian exchange that nevertheless offers the largest volumes on MATIC
Matic Network and Decentralized Finance (DeFi)
With its ability to accommodate decentralized finance applications, many projects have already turned to Matic Network.
Last August, Matic Network allocated $5 million to a new incubation fund to attract DeFi projects to its protocol. Note that grants are awarded in MATIC.
A project propelled into the limelight by Binance. Notably through the organization of its IEO on the platform, Matic Network has forged a special relationship with the largest exchange in the world.
For example, the Indian platform WazirX – owned by Binance – launched its own Automated Market Content Pool (AMM) last August. Which is entirely based on Matic Network’s architecture..
The choice of WazirX is not so surprising. As the platform wants to reduce as much as possible the costs incurred by the Ethereum network for its AMM. By using Matic Network, WazirX ensures that its solution performs well enough while remaining inexpensive for users.
Matic Network’s potential for growth in the DeFi sector is therefore significant, and as this ecosystem develops, the use of alternatives to Ethereum becomes a no-brainer.
In addition, other applications outside of DeFi also use Matic Network. These include blockchain games Decentraland and The Sandbox, both of which use Matic’s network to speed up transactions in their ecosystem.
Take advantage of Matic with Cex.io, an ultra-attractive ROI
As seen above, the MATIC token acts as a payment and settlement unit between participants interacting within the Matic Network ecosystem. The MATIC token is therefore likely to benefit from the development of Matic Network over time.
So, if you own or want to invest in MATIC over the long term, the staking option turns out to be very interesting. This is one of the offers of Cex.io, a famous platform for passive investment in cryptocurrencies.
By delegating your MATIC tokens to Cex.io, the platform will take care for you to staking them, avoiding the entire technical part of the maneuver. In addition, MATIC tokens staking is currently very profitable, with an annual interest rate fluctuating between 18 and 22%..
Cex.io’s offer comes in two variants.
- If you don’t have Matic, you can buy it directly with euros, USDT, BTC, etc.;
- And if you already have them, you can simply put your MATICs on the platform to make them grow.
Deleging your tokens to Cex.io is relatively simple. The platform has done everything possible to make the process as smooth as possible. To do this, simply select the desired number of MATIC tokens (manually or with the cursor). And then adjust your order.
Cex.io will indicate how many tokens you will get as a reward after a one-year period. Note that interest is paid every months, and can be removed from the platform at any time.
For more details on the offerings and how the platform works, read our full presentation of Cex.io.
Matic Network's FAQ
You have to keep in mind that crypto is still a very young market. Thus, it can be very volatile. However, Matic Network’s goal is to help Etherum blockchain to scale. So we won’t be surprised if Matic Network token’s price rises in the next year.
Matic Network was added to Coinbase custody’s Institutional Cryptocurrency Vault. Now, institutional investors are able to deposit and withdraw Matic token. Considering that, we can hope Matic Network should be listed on Coinbase for mainstream investors soon.