Matrix AI Network is a utility coin at the core of its project. Through the Matrix token (MAN) any individual or enterprise can buy services the Matrix AI Blockchain is capable to deliver at mainnet launch. So, with China having banned cryptocurrency how does Matrix ensure MAN is expended to power their platform? A deep-dive into the latest partnerships.
What’s the deal with China and crypto?
Despite recent news that China purportedly lifted the ban on cryptocurrencies, the opposite seems to be true. It still does not recognize cryptocurrencies as legal tender, even though China has fully embraced the nascent blockchain technology. China’s central bank, PBOC is currently working on a prototype of the ‘cryptoyuan’ and is supporting the development of a blockchain-based trading platform. With China’s aggressive investments into blockchain and fintech technology it seems only a matter of time before cryptocurrencies are allowed to enter the fray once more.
For the purpose of debate, let’s assume however that the legal situation of cryptocurrencies will not change in the foreseeable future. What will this mean for the utility of Matrix AI Network?
Enter The Matrix
MAN-tokens need to be expended to power the Matrix AI Network blockchain and purchase its services. A number of use-cases are imaginable with the current technology of Matrix. Initial target areas focus on:
- Medical diagnosis;
- Finance and Credit
- Gaming (more elaborate write-up found here)
- Video Analytics and Image recognition;
- Digital Asset Tracking through One Belt One Road;
- Decentralized Exchange;
While details on the construction of a Decentralized Exchange are currently absent, it seems Matrix is possibly integrating their Digital Assets Safe (DAS) in this platform. Which seems to be a multi-functional and continuously evolving hardware ledger.
As you can tell a lot of potential use-cases are possible with the underlying technology Matrix is ushering in the blockchain space. I would recommend checking out the articles I linked in each area to get a better understanding of what specific use-cases are imaginable.
Who will use Matrix?
I can imagine however that you might think this is purely theoretical and there is no way of knowing that enterprises actually will utilize this technology.
That’s where you’re wrong.
Matrix currently has partnerships with several enterprises and is working on more partnerships behind the curtains to ensure the utility of Matrix’ technology and the expense of MAN-tokens. A select number of these I will highlight once more:
- The Beijing Cancer Hospital, The 302 hospital and “a number of other first-line hospitals in China”;
Note that Matrix also discussed co-operation with ‘The Pathology Quality Control Evaluation Center’, which is established by the National Health and Welfare Commission of the People’s Government of the People’s Republic of China.
2. One Belt One Road (OBOR) research centre & International Digital Asset Management Co. LTD.
Matrix’s underlying technology will be used in the digitization of assets through IDA. The public blockchain of Matrix will lie at the core of this solution.
3. The Advanced Telecommunication Chain Industry Alliance in Tianjin, China.
“The Alliance aims to oversee, promote and accelerate the development of Tianjin’s telecommunications and blockchain industries. The Alliance’s projects will be guided by the technological innovation needs of Tianjin’s telecommunications and blockchain industries.” Note that Matrix is the ONLY blockchain company in the alliance.
At the signing ceremony others have expressed their hope that Matrix will leverage its own experience with blockchain solutions to help the Tianjin government in setting policies.
Tianjin is governed as one the four municipalities under the direct administration of the central government of the People’s Republic of China. Tianjin is thus under direct administration of the central government. In terms of urban population, Tianjin is the fourth largest city in China.
I have highlighted these three partnerships to outline that Matrix is actively exploring and leveraging of what seems to be a working relationship with the government of China or subsidiaries of those. It seems then that the playing field is set up in such a way that a number of services and industries will use the underlying technology of the Matrix AI blockchain.
While some of you might think this is just another ‘shill’, it is the only probable conclusion to make if we take things at face value. Matrix is warm within the public sector of China . Make of that what you will.
Cryptocurrency ban of no affect to Matrix
With the current legal situation in China enterprises can not pay with crypto. While potentially problematic, Matrix have found a work-a-round this issue. By partnering up with Litex, Matrix has found a way in which their partners can pay for services provided by Matrix with fiat money. By partnering up with Litex (also see here).
Litex is a decentralized value-exchange ecosystem that aims to eventually enable transfers between multiple cryptocurrencies and fiat-to-cryptocurrencies. Litex works with Matrix to enable interoperability with other blockchains as well. Litex is also actively exploring possibilities to take the upgrades of Bitcoin’s lightning network even further.
Currently Litex is at their testnet 0.2 release and have already succeeded in enabling cross-chain atomic swaps between Bitcoin and ERC-20 tokens. Which allow direct and immediate swaps between multiple cryptocurrencies. The security of transactions is greatly improved via atomic swap measures.
Atomic swaps are immediate and direct. During the interchange of crypto’s, only two states are possible. Either the complete interchange succeeds or it fails. There is no option in which one party can abscond with the tokens of the other. This greatly improves both speed and most importantly — security.
By leveraging Litex’ technology, partners of Matrix can directly pay with fiat money. Matrix then in turn swaps these tokens for MAN-tokens, which are expended within the Matrix blockchain ecosystem. Thus we can ensure that the token will retain it’s value. This would also imply that the more industries hire Matrix’ services, the higher the token value may be.
Parting thoughts on token value
Matrix is first and foremost a utility token and is thus designed for the payment of services. By delineating the current approach Matrix takes in ensuring demand and payment of their token it is hoped I have shared more insight in what drives the token value of MAN. Additionally I hope I have restored some of the confidence that may have been lost in the current bearmarket. Retrospectively reflecting at token value also means that current price action is 100% speculative and in no way reflects the true utility of the token or Matrix blockchain. And so we must set our eyes forward, only at full mainnet deployment can we more accurately estimate the value that Matrix brings to the table and whether or not it is the sleeping dragon investors deem it to be.
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Ensuring demand: the utility of MATRIX was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.