Matic Network Review by Midgard Research


Mass adoption of the blockchain and cryptocurrency usage in daily life is the main problem nowadays. The key factors that interfere with this are as follows:
1)Scalability of the blockchain and speed of transactions. Slow block confirmations, block size limitations and computations
2)Interoperability between different blockchain networks
3)High transaction fees for micropayments
4)Poor usability both for the development purposes and end users

Matic Network aims to solve mentioned issues providing 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 will be the de-facto platform on which developers will deploy and run decentralized applications.

The current working Testnet and alpha-Mainnet of the Matic Network works with Ethereum as the mainchain.


This diagram represents how Matic works on top of Ethereum

The actors of the Matic Network ecosystem are the following:

DApp developers will be the businesses who would be using Matic to scale their applications and provide a better UI/UX to their end users
End Users will interact in a convenient manner with applications that use Matic Network
Matic Token Stakers will validate the transactions and propose checkpoints on the mainchain using PoS consensus mechanism with 2⁄3 majority. They also choose Delegates amongst themselves who satisfy certain criteria to act as block producers.
Block Producers will enable faster blockchain generation times. They also have to provide a large stake as well as to satisfy various criteria such as KYC to be nominated as delegates.


MVP

Matic Network will release the Mainnet (alpha) soon, expected time: Q2 2019.
Matiс Network has already released Matic testnet, Matic.js Javascript SDK for developers and done a lot in terms of product development:

DAGGER
Matic Network has already developed Dagger which provides developers and users with the opportunity to receive real-time updates from Ethereum Blockchain. Dagger integration with Zapier allows to instantly connect Dagger for Ethereum with 1,400+ apps.

Matic Wallet
To ensure smooth asset transition to sidechains and easy asset management for users, Matic will be releasing its own wallet with a WalletConnect integration. Easy-to-use Plasma wallet mobile app, integrated with WalletConnect, will allow users to interact with DApps on browsers and in the future integrate many more devices.

Matic Network has collaborated with Decentraland marketplace for the implementation of Asset swaps PoC on Matic testnet. Matic Network allows users to get better user experience and minimize transaction fees.

Matic has already presented CryptoStaw, an app that can offer scalable DAI payments and lets users spend cryptocurrencies for real-world use cases.

The app was created by Chetan Badhe who was mentored by Matic team. Cryptostaw is still under development with already available beta version: https://cash.cryptostaw.com


PEER ANALYSIS

The main purpose of Matic project is the creation of a scaling solution for building dApps using different blockchains. In this area the main competitors are the following:

EOS (MarketCap ~ $5,000,000,000) is a blockchain platform for the development of dApps, similar to Ethereum in function. The EOS vision is to build a blockchain dApp platform that can securely and smoothly scale to thousands of transactions per second, all while providing an accessible experience to app developers, entrepreneurs, and users.

Zilliqa (MarketCap ~ $220,000,000) is a public blockchain platform that implemented sharding and achieved a throughput of 2828 transactions per second in its test net. This enables new use cases that have high-throughput demands that were not previously possible on public blockchain platforms.

Loom Network (MarketCap ~$62,800,000) is a Layer 2 scaling solution for Ethereum. It is a network of DPoS sidechains, which allows for highly-scalable games and user-facing DApps while still being backed by the security of Ethereum.

POA Network (MarketCap ~ $10,000,000) is an open-source public side-chain of Ethereum that has been getting quite a bit of interest from the community lately. The platform offers a framework for smart contracts which provides developers with an easy and effective way to code on Ethereum standards while leveraging the POA network.

Level 1 scaling solutions

Amidst other Level 1 scaling projects like Zilliqa, Quarkchain, etc, Matic stands out due to its ability to achieve scale while maintaining a great degree of decentralization due to its checkpointing layer as per the Plasma framework.

More importantly, these scalability projects have a BIG handicap. They are creating new blockchains where the new developer community, new product ecosystem, technical documentation – everything needs to be built from “scratch”. For instance, EOS has not been able to create a large enough developer community even with the level of visibility and hype they have had.  Matic, on the other hand, is based on EVM, all programming languages, developer documentation – everything is applicable to Matic Network.

Amongst Level 2 solutions there can be solutions like POA, Loom, etc. Matic Network is committed to achieving scale with decentralization. It does so by using checkpoints and fraud proofs from its adapted version of Plasma framework  Hence POA and Loom’s SDK model is not directly related to Matic Network as Matic sidechains are public blockchains backed by checkpoints and fraud-proof. The recently announced plans of Zombiechain by Loom may have similarities to Matic. But it has two key differences:

First and foremost, Focus is different. Loom is focusing on games and social apps with less decentralization while Matic needs security and decentralization as it is focused on DApps, games, financial transactions and trades. Matic also has plans for full-blown financial services like lending/trading dApps (tokenset swaps, margin trades and many more)

Secondly, Plasma Cash, which Loom wants to use “in future” blocktimes will always be more than the Ethereum blocktimes as you need to push every block of the sidechain to the mainchain, while Matic uses checkpoints(with PoS layer) for 1-second block time (with DPoS layer)

In Plasma cash you need to watch your own tokens, it means normal users need to pay third party fees to watch their tokens while in Matic anyone can challenge transactions – no need to watch your tokens. It increases the usability and user experience for mass adoption.

As Plasma Cash works with the NFT (Non-Fungible Token), it works great for game cards and social state changes where you have pre-defined fees (bundled as NFT – eg “20 tokens” to play game == 1 NFT coin on plasma cash). For normal tokens transfer, you may need to swap tokens (like normal currency notes change) on top of plasma cash which I think makes it difficult (more difficult for usability/users). It is still being discussed on plasma calls. While Matic uses state-based plasma (closer to Plasma MVP), this is not the problem for Matic Network


ROADMAP

Matic Network has existed and developed its product for more than a year.

Already been done:
-Plasma MVP contracts on testnet and Plasma exits tokenized for fast exits;
-Javascript SDK for the testnet;
-Dagger, a real-time Ethereum events notifications engine that was integrated with Zapier, an American for-profit corporation and a web-based service that allows end users to integrate the web applications they use;
-Cryptostaw, a decentralized peer to peer payments platform based on adopted version Ethereum’s plasma and Dai stablecoin,  was integrated with Matic testnet

Matic is dfinitely not a White Paper project. The team worked hard and surely will achieve its goals.

The Product roadmap divided into four categories:

1)Core Network
2)DApps
3)Protocol Integration
4)Interoperability

You can check the full roadmap of the project by this link – https://matic.network/roadmap


TEAM & ADVISORS

Matic Network team consists of 12 persons. They have a solid development and management background. The team worked for other blockchain related projects.

Matic Network has 3 technical co-founders that have already worked on a project for a 1.5 year:

Jaynti Kanani, Co-founder & CEO at Matic Network, is a full-stack developer and blockchain engineer. It is worth to mention that Jaynti is a contributor to well-known projects: Web3, Plasma, WalletConnect. Also, he had worked almost 3 years for Housing.com, real estate platform for buying, selling and renting homes, as a Data Scientist.

Sandeep Nailwal, Co-founder & COO at Matic Network, is a blockchain programmer and entrepreneur. He is a co-founder and CEO at ScopeWeaver that provides blockchain products and consulting services.

Anurag Arjun, Co-founder & CPO at Matic Network. He worked previously for AVP, IRIS Business, SNL Financial, Dexter Consultancy, and Cognizant Technologies on the positions of product/project management.

Matic Network has 3 advisers from the blockchain industry:

Esteban Ordano, Founder & CTO at Decentraland, Market Cap – $62,416,268 on 5th of April. Previously worked as a Software Engineer at BitPay.

Pete Kim works as a Head of Engineering, wallet at Coinbase. He is a creator of CipherBrowser and a co-founder & CTO at Nitrous, Inc.

Ari Meilich is a co-founder of Benchrise, Inc. Now Ari is working at Decentraland as a Project Lead.

The rest of the team, responsible for development and marketing, are true-geeks that will definitely bring the final product to life.


PARTNERSHIPS

Matic Network has several partnerships with well-known blockchain projects: Maker DAO QuarkChain, Ankr Network, Decentraland, Portis and Ripio Credit Network. These projects cooperate with Matic on research, development and integration purposes.

Maker Dao’s DAI will be the first ERC-20 token to be integrated with the Matic sidechains when the network launches its Mainnet.


TOKENOMICS AND TOKEN SALE

Matic Network’s token sale will be hosted by Binance Launchpad.
Launchpad Hard Cap: $5,000,000
Have already raised: $615,000 ($165,000 on a Seed Round plus $450,000 on Private Sale)
Total Hardcap: $5,615,000
Public Sale Token Price: $0.00263
Private Sale Token Price: 1 MATIC = $0.00263
Private Sale Allocation: 1.7% of Total Token Supply
Private Sale Vesting Period: 50% unlocked in the first month of TGE, remaining 50% unlocked in the seventh month
Seed Sale Token Price: 1 MATIC = $0.00079
Seed Sale Allocation: 2.09% of Total Token Supply
Seed Sale Vesting Period: 50% unlocked in the first month of TGE, remaining 50% unlocked in the seventh month

MATIK Token will be issued as ERC-20 (as of TGE) standard compliant digital tokens on the Ethereum blockchain. MATIK Token is designed to be a utility token. The main usage of the token is a unit of payment and settlement between participants who interact within the ecosystem on the Matic Network.

TOKEN ALLOCATION

TOKEN RELEASE SCHEDULE


VERDICT: 9.5 out of 10

Matic Network aims to solve the actual problems faced by blockchain industry. Matic Network has already released the testnet and plans to release a Mainnet (alpha) in Q2 2019. Matic Network has cooperated with Decentraland, CryptoStaw, and other projects to provide a better user experience with lower transaction costs to end users. The team is solid and experienced enough in terms of development and delivering the product.

Tokenomics seems to be reasonable and hardcap is low comparing with Matic Competitors (Total Hardcap – $5,615,000). Matic token is a utility token, it is a unit of payment and settlement between participants who interact within the Matic  ecosystem.

The important point is that token sale will be held on Binance Launchpad. It has already created a lot of hype and interest in the project. Demand for the token sale is high and supply is extremely limited, only 16,666 contributors will be able to participate in the sale. Definitely the project will reach the goal to raise $5,000,000 on public sale. The main question is how many Xs we can expect when tokens become tradable ;D

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