Yesterday we announced the results of our stress testing of the Matic Network CS-2008 testnet: 7,200 TPS! As a replica of the mainnet, the performance capabilities of CS-2008 (and thus the Matic mainnet) has huge implications for the future of the Ethereum ecosystem.
Providing Scalability for Mass Adoption
As the longest-standing DApp platform with the greatest network effect, Ethereum represents the most decentralized and secure smart contract platform in existence, but has famously been struggling to match its scalability with network demand due to current infrastructural limitations.
Now, however, with Matic’s innovation on the second layer, the third key element of Ethereum’s long-term success (scalability) can now be reliably provided, enabling the Ethereum ecosystem to thrive and reach mass adoption.
Tackling Network Congestion Head-On
At the time of writing, there were more than 137,000 Ethereum network transactions in the mempool (transactions waiting for confirmation). Depending on the amount of gas used, these transactions can take anywhere from 1-30 minutes to clear, based on the recommended gas prices.
As can be seen above, a user would need to spend $0.241 to achieve what is considered to be a ‘fast’ transaction on Ethereum, waiting approximately 1-2 minutes for it to confirm.
With Matic Network’s TPS rate of 7,200, however, all of these 137,000 transactions in the mempool could have been cleared within 30 seconds, and for less than 1/1000th of the gas fee per transaction.
In the above example, a transaction on the Matic Network mainnet was confirmed in 2.3 seconds at a cost of just $0.000011 USD. This opens the door to a whole new era of seamless Ethereum DApp usage.
Enabling Decentralized Finance to Thrive
With the rise of DeFi and it’s expanding network of tools, DeFi-related transactions have led to a further increase in congestion on the Ethereum network while aggressively increasing the transaction costs. This is a major barrier to widespread use of DeFi.
In the example above, DeFi is able to open up the possibilities of money legos on Ethereum to provide a more complex transaction to yield farm on decentralized protocols such as Compound.
The transaction above was an interaction between two decentralized finance platforms, Compound & Curve, and cost the user $16.55 in ETH. With Matic Network, this transaction would be 1/1000th of the cost.
As more and more DApps and protocols continue to onboard to Matic Network, the Ethereum mainchain will become increasingly less congested. This will allow Ethereum to focus on providing the security and decentralization that it delivers so well, whilst Matic handles the scalability aspect.
Summary: Onwards to a Bright Decentralized Future
We have devoted the past two years to help the Ethereum ecosystem to overcome its performance constraints and reach its full potential, and we’re beyond thrilled to finally be witnessing the power of Matic Network.
With a viable solution for massive scalability, the Ethereum ecosystem is now free to advance on its journey to facilitating mainstream adoption of blockchain.
The future of Ethereum and the overall blockchain ecosystem has never looked brighter, and we’re honored to be playing a prominent role in its long-term success.