Despite that2019 was touted
the ?year of the security token offering (STO),? it hasn?t yet happened. What
has happened, nobody predicted. Instead, the initial exchange offering (IEO) has
taken over the crypto markets as the token offering medium of choice. When PwC
released itsfifth ICO/STO
[https://www.pwc.ch/en/publications/2019/ch-PwC-Strategy&-ICO-Report-Summer-2019.pdf] report this summer, the numbers said it all. So far this year, IEOs have far
outstripped STOs in terms of funding, and the number of launches.
Furthermore, there are some among the 2019 IEO launches that are now emerging as
strong contenders to existing projects. In particular, Binance Launchpad has
made a name for itself among IEO platforms for hosting some of the biggest and
brightest projects to hit the markets this year. Hot on the heels of Bittorrent
and Fetch.AI cameMatic Network [https://matic.network/], which successfully
executed a sellout IEO on Binance Launchpad in April this year.
Now, it looks like 2019 could be the year that Matic goes stellar. Immediately
after the IEO, Coinbase Ventures approached the project with anoffer of seed
August this year, Coinbase followed up by announcing it wasreviewing Matic
with seven other projects
listing on its exchange. Among the other seven are long-established projects
such as Dash, Cosmos, and Decred.
To Scalability and Beyond
Even at this point in 2019, it?s difficult to pinpoint any platform that?s
genuinely solved the scalability challenge while preserving decentralization and
attracting users. Ethereum is decentralized, but despite the ongoing efforts of
the core development team, transaction speeds continue to lag behind other
blockchains. EOS is capable of far faster processing speeds, but this comes at
the expense of decentralization.
Many other platforms have followed on the heels of these two giants, claiming to
have solved the predicament. But the fact is that few of them can rival Ethereum
or EOS for the? number of dApps, daily active users, or the size of the
Furthermore, nobody can deny that blockchain has a usability issue. In general,
dApp users have to hold tokens to pay transaction fees, meaning there?s a
significant barrier to entry.
To cap it all, Facebook set the clock ticking earlier this year when it
announced its Libra plans. No matter what you think about centralized
blockchains, Libra promises to deliver fast transaction speeds, to a massive
existing user base. Furthermore, it?s almost a given that Facebook will make
sure that Libra is easy to use and integrate with its suite of platforms, which
also includes WhatsApp and Instagram.
Why Matic is Different
Whereas most blockchain platforms have attempted to reinvent the Ethereum/EOS
wheel, Matic is different. The project was conceived by Jaynti Kanani, now CEO,
when he was looking for scaling solutions for end-user products. He realized
that Ethereum?s Plasma scaling protocol was an obvious choice, and started
contributing prolifically to the research, eventually producing one of the first
MVPs for Plasma.
It was this solution that evolved into Matic Network. By taking a different
route and developing Matic as a second-layer solution for Ethereum, the company
has been able to avoid spending years developing its own mainnet. Furthermore,
it can tap into the existing pool of Ethereum supporters, developers, and users.
Along with transaction speeds of 65,000 per second and all the decentralized
security of a truly PoS blockchain, Matic is also one of the only projects with
a focus on improving the user experience.
Scalability has proven to be one of the biggest challenges for blockchain-based
gaming, so it should be no surprise that gaming dApps are flocking to Matic. One
of the biggest names with whom the company is partnering is Decentraland. The
two teams have been working together since 2017, andhave recently tested their
solution for Decentraland
[https://decentraland.org/blog/technology/decentralands-path-toward-scaling-transactions/] , enabling transaction speeds in the milliseconds.
[https://medium.com/marblecards/matic-and-marble-cards-to-collaborate-on-scalability-569d588fef6e] , andBetProtocol
[https://medium.com/@betprotocol/matic-network-and-betprotocol-partner-to-power-scalable-betting-dapps-9db0d28bf04a] are also examples of gaming dApps building on Matic. Beyond gaming, Matic has
also teamed up withBinance chain
[https://community.binance.org/topic/1188/matic-network-matic-is-listed-on-binance-dex] to enable an interoperability solution and is engaged injoint infrastructure
research with Elrond
[https://blog.matic.network/matic-network-and-elrond-engage-in-joint-blockchain-infrastructure-research] . The projects flocking to work with the company are the surest indicator that
Matic is making waves.
The Indian Connection
India has long established itself as a global center of excellence for IT.
Companies such as Infosys, Oracle Financial Services, and Tata Consultancy
emerged from India. Although the government is resistant to accepting the idea
of crypto, the country remains a hub for blockchain development.
For example, the governors of the state of Maharashtra wererecently reported
[https://cointelegraph.com/news/second-largest-indian-state-to-use-blockchain-in-various-spheres] to be developing blockchain technology for various use cases, including supply
chain and agricultural marketing. Furthermore, Indian telecoms giant Jio
[https://telecom.economictimes.indiatimes.com/news/reliance-jio-to-install-worlds-largest-blockchain-network-setting-up-pan-india-edge-computing-network-for-video-service/70641247] plans to build ?the world?s biggest blockchain network.?
Now, Matic is also flying the flag high for the Indian blockchain scene.Reports
[https://www.techcircle.in/2018/05/10/blockchain-barrier-99-75-indian-developers-lack-skills-to-work-on-new-technology] that only 0.25% of India?s IT talent is currently versed in blockchain
programming. Matic is already using its influence to help promote blockchain on
its home ground. For example,it sponsored the India dapp fest
[https://medium.com/matic-network/matic-at-india-dapp-fest-conference-2019-matic-network-blog-9c2dcec60992?source=collection_home—4——12———————–] in Bengaluru in June this year.
By creating a bridge between local IT talent and big-name firms like Coinbase,
Matic could be the catalyst for further blockchain expansion of the blockchain
footprint in India.
Plasma has long been touted as the solution to Ethereum?s scalability woes. Now,
it seems that Matic has leapfrogged the competition to bring true scalability to
the Ethereum network. With plans to implement it?s layer 2 solution onto other
blockchains in future, Matic could be the project that finally ushers in the
promised new era of interoperability.