Matic network came to solve the problems that other cryptocurrencies facing with. It’s a decentralized platform using an adapted version of plasma framework which work as a solution for faster and extremely cheaper transactions in addition with finality on a main chain. Matic uses Block Producer Layer to produce the blocks to solve the low transaction throughput problem. As a result, it enables the system to produce blocks at a very fast rate. It uses Proof of Stake and work as ERC20 token on Ethereum blockchain. All these enables Matic to achieve 216 transactions on a single side chain.
How does Matic work?
If you want to use Ethereum or any ERC20 tokens as payment gateway to buy goods or pay for services you have to wait for confirmations until the payment is done. The confirmation time ranges from 14 seconds to 20 seconds. Furthermore, you have to wait for multiple blocks to be sure of the finality of the block inclusion in the chain. That’s a discouragement for users to use the service.
As cryptocurrency is getting more and more popular and users show intention to use it as a payment gateway for their daily payments. As a result, more transactions will jam the Ethereum network, which result to increase the gas fees to have a faster confirmation. The gas fee is varied as per traffic and confirmation time. Matic proposed as a solution to overcome the challenge.
Here is how Matic works:
- The user deposits crypto assets in the Matic contract on mainchain. (Ethereum blockchain)
- The corresponding tokens will get reflected on the Matic chain, once the deposited tokens get confirmed.
- Now the user can transfer the tokens to receiver instantly with tiny amount fees. The transfer will be instantly because it has faster blocks. It’s around 1 second or even less.
- They can withdraw remaining tokens from the main chain, once the user is ready. The withdrawal gets done by establishing proof of remaining tokens on Root contract.
Matic features & advantages
Matic Network builds a decentralized platform to solve the blockchain scaling problem. It provides faster and cheaper transactions with finality on the main chain.
Matic has a smooth UX in addition with a native mobile app and SDK with WalletConnect support.
It uses Proof of Stake algorithm, each operator is themselves staker in the system.
Its sidechain provides fast, low-cost and secure transactions with finality achieved on main chain.
It can scale up to 65 thousand transactions per second on a single Matic chain.