This is part of a series of interviews with founders and builders in the Web3 space called the Web3 Growth Handbook. The official handbook will be released in the coming months, but you can read all of the other available interviews here.
“We should want to get to the point where we don’t ask if apps are using blockchain. By default, we should use blockchain. To get there, we need to make sure the infrastructure is strong.”
If you’ve been paying attention to the blockchain space at all, you know there are two main drawbacks to using the technology: Speed and cost. Matic, a layer two scaling solution, aims to solve both problems. By introducing a side chain protocol that leverages their own ERC-20 token, Matic is able to provide near-instant settlement of transactions at a significantly reduced cost. Matic CEO Jaynti Kanani knows how difficult it is to build scalable applications on Ethereum, and while the world waits for Eth 2.0, he and his co-founders decided to tackle the problem now.
Founded in 2017, Matic has been building infrastructure and developer tools to help bring Ethereum to the masses. They’ve built quite the name for themselves in the process. Coinbase Ventures participated in their seed round, and Matic raised $5 million in their token offering last year. Their products are primarily focused on scalability, which is solved through their side chain powered by Ethereum’s Plasma proof of stake consensus mechanism. However, Matic has also built an on-chain notifications system to make life easier for developers called Dagger and a non-custodial crypto wallet which provides near-instant transaction settlement.
We had the chance to speak with Jaynti about his journey, Matic’s growth, and the challenges he and the entire Web3 community have and will face going forward.
How do you define growth at Matic?
We define growth on multiple levels. First, we want to know how many dapps have integrated Matic. Then we want to see how many dapps in different markets are using Matic. It’s important for us to see how many different kinds of dapps can we accommodate and how many different types of markets we can support. That is the real driver of growth for us.
What has been the most difficult part of growing your company so far?
If we have 150 or 200 dapps in the pipeline, we still need to think about how to grow that number. The problem is that there are a limited number of total dapps on the market. So overcoming the number of apps in the web3 space is a problem. It’s a waiting game, but we can help build excitement to get more people building.
What do you think needs to happen to see the growth in the market necessary for your company to then grow?
If you ask any high growth startup outside blockchain to build on blockchain, they won’t do it because they are doing fine without blockchain. However, if you ask a traditional company to incentivize people on the platform, those companies will possibly see a way to do something with blockchain. The blockchain market is very early so building even a simple dapp is still really complicated. That needs to improve before more developers come over from the traditional market.
We should want to get to the point where we don’t ask if apps are using blockchain. By default, we should use blockchain. To get there, we need to make sure the infrastructure is strong.
What tools do you wish existed to help with growth of the ecosystem or growth of your company?
If you think about the onboarding experience of wallets, it’s fine for developers. But let’s assume I ask my parents to use some apps, they still have to figure out what my wallet address is and what tokens are. They have to get some ether, they have to understand what can be done with that ether, they have to understand other tokens. It’s complicated.
With apps like TikTok, people who use it don’t have to think much about anything. They don’t have to think twice about how to onboard. Take the example of payments, you don’t think multiple times about how the payment is going through. But in blockchain, you have to think about many steps in the process. You have to think about what address, what platform, what address, and more.
What are your predictions for Web3/Blockchain growth in 2020?
I’m not betting on Web3 native dapps in 2020. I’m expecting some high growth, non-crypto startup will integrate a blockchain in their app. That will become the default developer for blockchain and it will kickstart the growth for the entire industry.
If you’re building products in the Web3 space and care about speed, you should take a look at Matic. They can provide the experience Web2 users expect in a Web3 world.