Matic is the cryptocurrency that powers the Matic Network, a decentralized network operating on a side-chain, implemented on the main Ethereum network, for the verification and validation of off-chain transactions.
The purpose of this project is to solve some of the key issues that affect the operation and user experience of dApps.
These issues, as is often the case, are related to the scalability and usability of a decentralized platform, and the cost and speed of executing a transaction.
When the tokens held by a user are deposited and confirmed on the Ethereum blockchain, the same balance will be reflected on the Matic Network.
Using this system allows the Matic side-chain to confirm a block in about one second and achieve cheaper and faster transactions.
Given the protocol infrastructure and its composition, Matic is an ERC20 token and the network it powers allows instant swaps with all ERC20 and ERC71 tokens. In the future Matic already plans to enable exchanges between cryptocurrencies from different blockchains to improve interoperability between projects.
Dedicated smart contracts will allow users to make crypto payments and receive any type of token they prefer; Matic will manage the conversion process of the different assets through the atomic swap based on a cross-chain system where the crypto assets will be transmitted.
This will allow sending BTC for example and enabling the counterparty to receive the equivalent in ETH, all in the same transaction.
The Matic crypto asset was created with the purpose of being used to cover the expenses related to transaction network fees and as a token of participation in the ecosystem to support the PoS as a consensus mechanism.
Thanks to the high level of demand in recent years it has also been integrated into several external platforms as a means of payment.
It currently has a market capitalization of $70 million and is ranked 86th among the top 100 crypto assets in circulation.
Although it is in a prominent position compared to the other 5600 existing cryptocurrencies, it has not managed to recover the huge loss, which in the second week of December saw its value plunge by 70%, stopping the decline at just over $0.01.
This decline was caused by an erroneous tweet, denied shortly afterwards by the COO of Matic Network.
Exactly three months after this catastrophic event, between the end of the second and the beginning of the third week of March, the price of the crypto broke a major support, marking a new low at $0.007; during the last twenty days, Matic’s value seems to have settled in the area around $0.02, recovering most of its losses.