What is Matic Crypto?

The Matic Crypto: The Latest in Blockchain Technology

 

What is the Matic Crypto? The Matic team has developed an all-new, state-of-the-art blockchain technology designed to support future decentralized applications (DApps) with the aim of providing scalability, speed, and usability in the blockchain ecosystem. Learn more about the Matic Crypto today!

 

Decentralized Exchanges

The Matic crypto aims to solve a big problem with blockchain technology by decentralizing exchanges. To understand how a decentralized exchange works, we need to first define how centralized exchanges work.

Centralized exchanges are characterized by three things: user identities, bank accounts, and passwords. These centralized exchanges store private keys that control cryptocurrencies on their servers, effectively acting as custodians of your funds.

When you trade your cryptocurrency on these platforms you give up control of your private key and instead they move your money around behind-the-scenes.

They do charge transaction fees but they also have central points of failure where users can be hacked or transactions can be frozen by authorities or governments. It's not always clear if the central point is trustworthy.

 

How does the Matic Network work

As stated on their whitepaper, A blockchain can process a maximum of 20 transactions per second (TPS). In contrast, credit card companies like Visa or Mastercard process around 1,667 TPS and 5,000 TPS respectively.

These significant limitations cause network congestion and transaction backlogs. The lack of scalability has prevented the widespread adoption of blockchain technology.

To solve these problems and scale blockchains to massive levels without sacrificing decentralization or security, we developed an extension to Ethereum called Plasma Cash.

This enables all applications that require high transaction throughput to run on top of blockchains that support billions of transactions per day.

 

Why is it so fast, so far?

Until now, crypto has never been designed for mainstream use. Its blockchains haven’t been able to handle more than a handful of people using them at once.

In fact, scalability was a major problem that led to last year’s sharp drop in cryptocurrency prices—and Bitcoin’s rapid fall from its record high above $19K.

Today, blockchains remain hugely expensive and slow, with no practical solution on the horizon. For crypto to reach its potential, scalability must become a priority.

But finding solutions is tough because everyone has different ideas of what blockchain should be—and they don’t always agree on technical standards or how they should be implemented across chains.

 

Key components of a blockchain system

A blockchain is a chain of blocks, which contain data sets. These data sets are linked and secured using cryptography.

Each block can only be updated by consensus between participants in the system, and when new data is entered, it can never be erased. Blockchains use distributed ledgers to store transaction records; a blockchain database isn’t stored in any single location, meaning that records aren’t easily tampered with or destroyed.

 

Let’s dive deeper into each component

it’s all about semantics. Cryptocurrencies are essentially tokens—digital assets with a specific function that can be used as a currency or exchanged for other cryptocurrencies.

Tokens are produced and stored on blockchain-based networks, which require miners to verify transactions. Miners do their work by solving complex mathematical puzzles with computational power provided by dedicated hardware such as GPUs.

Transactions are added to blocks, which are combined into chains (hence, blockchain) through cryptographic algorithms.

 

Interoperability & sidechains

Launched on Ethereum, Matic is to become a part of an ecosystem that aims to bring about faster, cheaper, and easier blockchain-based solutions for mainstream users. This community will include features like interoperability, sidechains, and improvements to existing scalability solutions.

These are important technological leaps that can be taken forward with proof-of-stake blockchains such as Ethereum’s. From scaling solutions to improved governance protocols, interoperability will be key to widespread blockchain adoption.

 

Layer-2 Protocols such as Lightning Network and Raiden Network

Sidechains open up interoperability. With sidechains, tokens can be transferred from one blockchain to another, giving developers far more flexibility to create interesting applications.

So instead of building a new platform from scratch (and struggling for adoption), you can just implement features on top of an existing platform using its native token—you don’t need new users to adopt your coin; it is merely used as a means to access other platforms and services.

In addition, with sidechains each blockchain gets its own unique features, giving developers more freedom over what they want their application to do without limiting it by requiring an entire network of people all running that app.

 

Layer 3 Protocols like Ethereum

To understand layer 3 protocols, it helps to start with what a blockchain does. A blockchain is simply a list of transactions that is shared across multiple computers on a network.

These computers must all agree on what block to add next to maintain consensus, and nodes do so by mining new blocks.

 Layer 2 (or on-chain) protocols are built on top of layer 1 (the underlying blockchain), while layer 3 (or off-chain) solutions exist independently from blockchains themselves.

These off-chain solutions could be built using Ethereum smart contracts or even without them, as we will see below.

 

Summary of key points to take away from this blog

A blockchain is a decentralized database, and they allow us to trust that all of our data is being stored without having to trust a single company or organization.

Since every block in a blockchain contains a link to both its parent block and its successor, it’s easy for anyone to see what’s changed.

 A blockchain network lives by a shared consensus — everyone on the network agrees on what blocks are valid, which makes it nearly impossible for anyone to maliciously alter data. Rather than storing transactions, balances, or other data directly on their own servers, app developers use a smart contract written into Ethereum’s language Solidity and hosted off-site (on the cloud).

 Smart contracts automate away middlemen and intermediaries.

Conclusion

In conclusion, Matic’s team is a group of experienced professionals who have come together to work on solving one of blockchain technology’s greatest problems.

They have an existing product and are working towards building a product that is scalable and can be easily integrated into all sorts of applications.

With their strong development team, a solid background in blockchain and in distributed systems, and experience with other projects in the space they are positioned to make it happen.

We at [Private] believe that we have entered a new era where blockchains are ready for adoption by real-world business users and developers, so we eagerly await getting our hands on Matic’s platform when it goes live later this year.