On the 11th of August 2017 Vitalik Buterin and Joseph Poon published “Plasma: Scalable Autonomous Smart Contracts” (Buterin & Poon, 2017). The proposed Plasma-sidechain framework for enforced and incentivized execution of smart contracts, was capable of scaling potentially billions of state updates per second, thus enabling the representation of a substantial number of decentralized financial applications (Defi) globally (Buterin & Poon, 2017). The framework allows for multiple blockchains to exist within a root blockchain; in this instance the Ethereum Blockchain (see figure 1 below). To be clear, not only Ethereum based tokens can be used to create individual blockchains but integration is possible with any blockchain. For example, Harmony One has fully integrated with Matic (Sorenson, 2019). Other examples of blockchains that would benefit by fully integrating or using modified Matic plasma sidechains are Cosmos, Ethereum Classic (ETC) and Bitcoin gold (BTG) – the reasons for this will be elaborated in the third section. However, the three mentioned are only a few. Currently over 40 projects are building on Matic, awaiting the imminent final mainnet in Q1 2020 and numerous other projects are still deciding on how to scale. The infographic in the next section shows a more comprehensive list of partnerships.
Source: Buterin & Poon, 2017, p. 3
How is Millions or Billions of Transactions Per Second (TPS) Possible | Horizontal Sharding
In order to understand this it is necessary to comprehend the theoretical speed of plasma-sidechains as well as the concept of horizontal sharding. A Matic-sidechain has a theoretical speed of 12 to the power of 16, in other words 65 000 TPS per second on a single sidechain (Matic Network, 2018). The term horizontal sharding refers to multiple linked sidechains for individual projects or blockchains. According to Jaynti Kanani, in an article “What is Matic Network”, theoretically, there can be an infinite number of side chains working under the secured and decentralized layer of checkpoints; however, an infinite number will not be required. Currently, prior to mainnet, Matic is achieving 10 000 TPS; nevertheless the goal is to achieve as close to 65 000 TPS as is possible. Mainnet is due for release by the end of March 2020. The Matic Network has the capacity for millions of transactions per second and possibly billions as envisioned by Buterin and Poon in 2017 just 2.5 years ago.
It started in 2017 when Jaynti Kanani (CEO of Matic) began seeking a solution to the scaling issue (Matic Network, 2020). He began contributing substantially to plasma research and Matic developed one of the first implementations of Plasma MVP (more viable plasma). Matic remains the most viable implementation of plasma.
Many who have heard of Matic have heard of scaling with regard to Matic plasma-sidechains but most do not understand that Matic also uses horizontal sharding for multiple linked sidechains. According to Vitalik Buterin sharding is “inherently more fragile” or less secure than plasma (Matic Network, 2019). Buterin (2019) states that a likely approach is a sharded base layer with plasma chains on top to provide further scalability . Harmony has selected this option with Matic plasma-sidechain integration for the best possible scalability. Overall with regard to scalability it does appear that plasma-sidechains are the best solution available and that literally most blockchains can solve the scalability problems by integrating them. Scalability has proven to be one of the main issues that have prevented mass adoption and large institutional investment to date.
Source: Crytozak10 https://twitter.com/cryptozak10/status/1220250880177594368?s=08
Cosmos, Ethereum Classic (ETC), Bitcoin Gold (BTG) and Interoperability
There are many blockchains that can be integrated with Matic plasma-sidechains such as Cosmos, Ethereum Classic and Bitcoin Gold. This article will briefly consider these three.
Ethereum Classic (ETC)
Firstly, Ethereum classic is the original Ethereum and became Ethereum classic after the hardfork in 2016 following the messy divorce which resulted from the DAO hack (Coindesk, 2020). What is most interesting is that due to recent updates like Constantinople and the upcoming Istanbul in March 2020, Ethereum Classic will become fully compatible with the Ethereum Blockchain and can take advantage of the layer 2 scaling technology offered by Matic Network plasma-sidechain scaling architecture (Summerwill, 2020). Currently, ETC scales at about 14 TPS. This state of the ETC blockchain can be changed in the near future by integrating with Matic Network.
Bitcoin Gold (BTG)
Bitcoin Gold is another project that can benefit by scaling. It Bitcoin Gold (BTG) is a fork of Bitcoin that occurred on October 24, 2017. Bitcoin Gold changed Bitcoin's proof-of-work algorithm from SHA256 to Equihash rendering specialised mining equipment obsolete in an attempt to democratise the Bitcoin mining process.
BTG’s current TPS rate is approximately 7. The BTG road map specifies plasma-sidechain development – “Actual deployment of sidechains, backed by the mainchain. This allows tremendous bandwidth (throughput) and rapid code execution on the Plasma sidechain while enjoying funds security on the mainchain”(Bitcoin Gold, 2019).
It would appear that the BTG team are behind with the roadmap due to numerous other developments that are in progress. Integration with Matic Network and the support of the seasoned and experienced Matic team in the area of plasma-sidechain development will expedite the process of achieving the BTG development team goals for layer 2 plasma scaling.
Cosmos
Cosmos has achieved great results for scaling as a layer 1 blockchain but much higher throughput is needed for the Blockchain’s envisioned growth globally. The Cosmos blockchain will need to use layer 2 scaling solutions such as the Matic network.
The Cosmos Inter-blockchain Technology (IBT) protocol, when it goes live, will enable blockchains built on Cosmos to interact with the Matic Network and take advantage of the plasma-sidechains as elaborated above. According to the website information, “Now the global economy can connect to the blockchain, and parties on existing blockchains can interact and exchange with each other across chains” (Tendermint, 2019). Sandeep Nailwal, COO of Matic Network, clarified that IBC is Cosmos' protocol for inter-blockchain connectivity and "since Matic is built on Tendermint, it has easy connectivity with the protocol and hence inter-connectivity will be live once IBC goes live."
IBT is an interoperability protocol. Interoperability is defined as “a characteristic of a product or system, whose interfaces are completely understood, to work with other products or systems, at present or in the future, in either implementation or access, without any restrictions” (Wikipedia, 2019).
Matic interoperability: In addition to the Ethereum mainchain, “the Matic network intends to integrate multiple leading smart contract platforms cryptocurrencies such as Bitcoin and others to provide an universal platform for the users to be able to use/exchange their assets from various blockchains” (Matic, 2018). In a nutshell, this means that other blockchains will be able to interact with the Matic Network using their own native tokens or coins. This process is explained by Perry1 under the article sub-heading “Integration of Other Blockchains Native Tokens with the Matic Network” (Follow the link)
Summary
Buterin and Poon’s 2017 vision of plasma-sidechains potentially scaling millions or even billions of transactions per second is imminent. The Matic Network’s mainnet, built on the Ethereum blockchain, will go live in Q1 of 2020. Scaling blockchains to achieve high throughput will be possible by using Matic plasma-sidechains. The dilemma preventing mass and institutional adoption will have been removed through the efforts of numerous individuals and beginning with Buterin and Poon’s academic paper on plasma-scaling. Horizontal sharding combined with plasma-sidechains will result in millions of transactions per second as scaling adoption continues to expand and will likely result in exponential growth.
Numerous projects that have built on Matic will launch their projects when Matic mainnet arrives in the very near future. Other projects such as Bitcoin Gold and Ethereum Classic are in a favourable position now to integrate and develop partnerships with Matic to secure layer 2 scaling for their individual blockchains. The IBT protocol will likewise enable all blockchains built on Cosmos to use the Matic layer 2 solution for optimal scaling through interoperability protocols.
Contact a Core Team Member
For those interested in building / integrating with the Ethereum / Matic network you can contact a member of the team at https://matic.network/about/ where individual team members contact information can be found, or at [email protected]
Source: Telegram Dao Maker Community Https://t.me/daomaker
FOR OTHER MATIC ARTICLES WRITTEN BY THE SAME AUTHOR GO TO BLOCKCHAIN INNOVATION
Sources
Bitcoin Gold. (2019). Roadmap 2019. Retrieved from https://bitcoingold.org/roadmap-2019/
Buterin, V., & Poon, J. (2017, August). Plasma: Scalable Autonomous Smart Contracts. Retrieved from https://pdfs.semanticscholar.org/cbc7/75e301d62740bcb3b8ec361721b3edd7c879.pdf
Buterin, V. (2019, June). Sidechains vs Plasma vs Sharding. Retrieved from https://vitalik.ca/general/2019/06/12/plasma_vs_sharding.html
Coindesk (2020, January). Ethereum Classic successfully completes 'Agharta? Hard fork. Retrieved from https://www.coindesk.com/ethereum-classic-successfully-completes-agharta-hard-fork
Matic Network. (2018). Matic Whitepaper. Retrieved from https://whitepaper.matic.network/#scalability
Matic Network. (2019, September). PlasMatic Education Series: Part I. Retrieved from https://blog.matic.network/plasmatic-education-series-part-i/
Matic Network. (2020, January). PlasMatic Education Series: Part II. Retrieved from https://blog.matic.network/plasmatic-education-series-part-ii/
Perry1. (2020, January). Matic Network | Blockchain Collaboration, Integration and Technology Sharing Encouraged | POS Sidechains | Adapted Plasma Framework | Cosmos | Chainlink | Harmony One | Elrond |Ethereum Blockchain. Retrieved from https://www.publish0x.com/blockchain-innovation/matic-network-blockchain-collaboration-integration-and-techn-xowxxw
Sørensen, M. (2019, July). Harmony and Matic team up??'to set new industry standards in blockchain scalability and Dapp?. Retrieved from https://medium.com/harmony-one/harmony-and-matic-team-up-to-set-new-industry-standards-in-blockchain-scalability-and-dapp-b2e60a4aff68
Summerwill, B. (2020, January). Twitter - Ethereum Classic upgrades. Retrieved from https://twitter.com/BobSummerwill/status/1219592458075398144
Tendermint. (2019). Inter-Blockchain Communication. Retrieved from https://cosmos.network/ibc/
Twitter Cryptozak10. (2020, January). Matic partnerships. Retrieved from https://twitter.com/cryptozak10/status/1220250880177594368?s=08
What is Matic Network
https://medium.com/matic-network/what-is-matic-network-466a2c493ae
Wikipedia. (2019, December). Interoperability. Retrieved from https://en.wikipedia.org/wiki/Interoperability
