In this episode Ahmed and Aniket speak to Sandeep Nailwal, COO of Matic Network.
Matic Network is a Layer 2 scaling solution for decentralised blockchain networks. The hosts explore why Matic exists, how they’re implementing Layer 2 solutions and what the platform is all about.
Sandeep in a nutshell explains how important it is to solve the biggest problems in the space; scalability and UX.
The Challenges
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Current blockchain networks have a big problem in scaling due to its decentralised nature and that for mass adoption current blockchain networks will not be able to service millions of users.
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When it comes to UX and usability of blockchain’s the biggest problems lie in the technical nature of using blockchain. The ultimate goal is that when users interact, they wouldn’t know that they are really interacting with blockchain networks. From a developer standpoint, they are also providing easy tools for developers to develop applications on top of Matic which would allow scalability for Dapps and ultimately lower fees as well.
Layer 1 and Layer 2
Sandeep goes into the differences between Layer 1 and Layer 2 in blockchain networks and how they behave respectively.
Sandeep explains that Layer 1 is all about economic considerations where there is a trade-off between security and scalability which is commonly seen in networks like Bitcoin and Ethereum. The higher the security the lower the scalability and thus inherently slow. Ahmed quotes Vitalik’s Scalability trilemma where if you had scalabilty, decentralisation and security, you can only choose two of these three. Most, if not all Layer 1 blockchain networks, they choose decentralisation and security.
In Layer 2, since you have Layer 1 to rely on which is security and decentralisation, then through cryptographic mechanisms you can get the same features on layer 2 as well as adding the scalability in layer 2 which is not included in layer 1.
Make sure to listen to the episode to hear how Matic network is building out this innovative Layer 2 solution they are creating.
Difference between Matic and others
Matic’s solution is highly inspired by the Plasma implementation that was put forward by Vitalik Buterin and Joseph Poon. Plasma is one of the first layer 2 frameworks out there in the market.
Here Sandeep explains how they are implementing layer 2 differently from Plasma, briefly explaining how they are implementing an account-based system rather than the UTXO system which is used by Plasma. Make sure to tune in to find out more!
Sandeep explains how Matic is different from competitors such as Loom Network and Skale.
He also goes into how they are improving developer experience since Matic is built on Ethereum, Ethereum developers are automatically Matic developers and thus it is easy to migrate to the layer 2 Matic is providing.
Crypto in India
Aniket who has been researching the Indian blockchain space is curious to see how Matic are operating in India given they are an Indian team.
Sandeep explains the structure of Matic and where they are based and states that their research team is based in India. He also goes to talk about the current regulatory landscape of crypto in India and believes that India will not ban crypto.
The Matic token and tokenomics
Ahmed asks about the token mechanism of Matic network and Sandeep answers that their token is a network token which is used to keep the network secure and to have the token in order to use the Matic network. Therefore, like most blockchain’s such as Bitocin and Ethereum and other protocol layers a native token is used for transaction fees. Additionally, Matic is a proof of stake system which requires a token to govern and secure the network thus a native asset is necessary to secure and incentivise network participants to keep honest, like how most blockchains currently are.
Thus, the token has two utilities: used for transaction fee and used for staking.
Is Matic doing an ICO?
Sandeep explains that they are looking to do an ICO and shares his plans on doing a large public sale on the back of recently completing a small private sale. They have an amazing announcement soon so do make sure to keep your eyes peeled.
We hope you enjoy!!!
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Special Guest: Sandeep nailwal.