Hey guys, we’re back with a detailed summary this week on Matic Network ie, Polygon Network, and how they are trying to revolutionize the Defi space. As you might have heard, Matic is a layer-2 protocol and today we will discuss every single detail about this project & trust me this would be the only article you would ever need to read on Matic Network. Let’s get started!
Matic Team Members
Matic is essentially a blockchain solution that originated in India as a layer-2 protocol that aims to solve the scalability issues with Ethereum Blockchain. By Scalability problems, I aim to denote problems like high gas fees, low transactions per second, etc. This year in February, the project rebranded itself to Polygon Network with an aim for a larger vision & increase in adoption.
Initially, Matic was founded by three Indians, Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. The main aim of the project is to solve some of the key issues, that are faced by the Ethereum Network which includes issues in mass adoption due to lack of scalability & high load times. Even there are smart contracts that claim to solve the issue of slower transaction speed but that too comes at a cost of the lower level of decentralization. Matic Network aims to solve these scalability issues by not compromising on the existing levels of decentralization & efficiency.
Polygon uses a customized version of the Plasma framework which is built on proof-of-stake checkpoints that run through the Ethereum main chain. This allows polygon to achieve up to 65,000 transactions per block.
Key Features of Matic Network
- Security: Matic Network chain operators are stakers in the PoS system. In simple terms, Staking is the less-resource intensive alternative to proof of work and involves holding funds in a cryptocurrency wallet to support the security & operations of a blockchain network. The main idea in a PoS system is that the participants can lock their coins and validate transactions that the protocol randomly assigns them. In return, the validators get staking rewards based on multiple factors like how many coins they’ve staked, how long they have been actively staking, the number of coins staked in the network, the inflation rate & more.
- High Throughput & Scalability: Matic network has achieved up to 10,000 TPS on a single side-chain as per their internal testnet. Multiple chains could also be added to further enhance the capability. Fast, low-cost transactions on Matic Sidechains can be achieved.
- Public Sidechains: Matic sidechains are public in nature as compared to individual dApp chains and are permissionless and capable of supporting multiple protocols.
- For Developers: Polygon’s central SDK provides a more efficient, flexible & modular framework for app developers to produce a variety of dApps with more efficiency & ease.
Matic tokens have a total supply of 10,000,000,000 MATIC tokens out of which 6,293,422,325 MATIC tokens are already in circulating supply. It ranks 16 in CoinMarketCap & has a live trading price of $1.20 (as of 23rd June 2021).
It has a market cap of approximately $7,456,771,123.76 ($7 billion USD), with a fully diluted market cap of over $11 billion USD. Matic token reached an all-time high price of $2.68 on 18th May, 2021 & I’m assuming it’s not a big one considering the utilities for the same.
Matic tokens are released on a month-to-month basis. At the initial private sale in 2017, 3.8% of Matic’s total supply was issued. In the April, 2019 launchpad sale, another 19 percent of the total supply was issued and was sold at $0.00263 per token to raise $5 million.
The remaining will be distributed as follows:
- Team Tokens: 16% of the total supply
- Advisors Tokens: 4% of the total supply
- Network Operations tokens: 12% of the total supply.
- Foundation tokens: 21.86% of the total supply.
- Ecosystem tokens: 23.33 % of the total supply.
There are four layers of operation in Polygon Network which helps to perform a variety of tasks, this includes the Ethereum Layer, the Security Layer, the Polygon Network Layer & the Execution Layer.
Matic Price Prediction
Matic was priced at $0.002 in January, 2021. In March, the coin rose to about $0.45. In May, it reached an all time high of $2.68.
If we look at the utilities of the project & ongoing innovations, some folks suggest that the coin could be trading at over $5 by the end of this year and might reach $50/token by the end of next 5 years.
We’ve made videos on Matic earlier also. You can find some of them below,
Thanks for reading !