(Ljubljana, Slovenia - 2 November 2020) - CargoX, the maker of the CargoX Platform for Blockchain Document Transfer (BDT), has connected to the Matic Network - a sidechain to the Ethereum blockchain - to provide even faster and more cost-efficient original document transactions.
The CargoX Platform is built using Ethereum blockchain technology and runs on top of the Ethereum Mainnet neutral public blockchain network, which ensures the widest possible consensus for data and transaction validation. Providing such borderless global computer infrastructure comes at a cost. The internal prices of document of title and original document transactions fluctuate depending on the utilization of the Ethereum Mainnet and current transaction fees. These are a consequence of current network congestion and the network’s original setup.
Waiting for Ethereum 2.0
The Ethereum Foundation has been investing a lot of effort into upgrading to Ethereum 2.0. The planned upgrades will ultimately accommodate larger numbers of transactions and lower the cost while optimizing energy use. The biggest gains are expected by the switch from a Proof-of-Work to a Proof-of-Stake algorithm. The relevant improved features are planned within a timeframe that is not compatible with the CargoX roadmap.
Scalability here and now
CargoX has decided to utilize a sidechain - a secondary blockchain - for immediate document transaction validation, while preserving all the original Ethereum Layer 1 network functionalities within the solution.
The Matic Network, a Layer 2 blockchain network, strives to solve today’s scalability and usability issues, while not compromising on decentralization. It accomplishes this all while leveraging the existing developer community and ecosystem. The Matic Network is an off/side chain scaling solution for existing platforms, to provide scalability and a superior user experience for DApps.
CargoX on Matic and Ethereum
“The CargoX Platform remains the electronic bill of lading platform of choice for companies aiming to use technology based on neutral, public networks. Even with this change, we preserve all the features that earned the CargoX Platform its impressive list of prestigious awards and high nominations. We remain on course as the provider of the most reliable, secure, and transparent blockchain document transfer in the shipping industry,” said Stefan Kukman, founder and CEO of CargoX.
“We evaluated several alternative solutions. Among the technologies suitable for the task, the Matic Network has proven to be the most stable, reliable, and mature. They have a relevant roadmap, a solid foundation, and a competent business and software development team - while providing all the features that enable us to switch back and forth between the two Ethereum networks if needed. We will continue to follow the development of the upcoming Ethereum 2.0 network and potential alternatives. We strive to provide our customers with the most reliable and long-term solution in the market,” said Bojan Čekrlić, CTO of CargoX, who has led the development of the CargoX Platform since early 2018.
"CargoX is a pioneering product that brings the power of blockchain to a real-life application that brings security and speed to document uploads and ownership. Matic is built to support high speed and user-friendly experiences, and this collaboration between CargoX and Matic will ensure that CargoX’s innovative applications can take advantage of the potential of Blockchain while ensuring a seamless experience for all users," said Sandeep Nailwal, Co-founder & COO of Matic Network.
How it works
All transfers of title and document registrations on the blockchain remain as secure on Matic as on the Ethereum mainnet, and the documents themselves are still stored in the Interplanetary File System (IPFS), and they are heavily encrypted and hashed. Customers can audit document ownership and transactions in a similar way to that on Ethereum. Customers can use the same Ethereum Network blockchain keys on the Matic Network, so users find the transition completely seamless.
Matic uses proof-of-stake to speed up transactions but, other than that, smart contracts - and everything else - can be deployed to Matic exactly as on mainnet. Matic also provides a way to transfer data (e.g. documents, tokens, etc.) from the Ethereum mainnet to Matic and back - but CargoX is not yet using this option. CargoX does record all signed document transactions in its database to eventually replay them on Ethereum in the future.
CargoX, the builder of the electronic Smart Bill of Lading solution, later significantly upgraded into the CargoX Platform for Blockchain Document Transfer (BDT), has pioneered the blockchain revolution in supply chains. In addition to numerous awards and glowing nominations, CargoX has been approved by one of the industry’s most important organizations - the International Group of Protection & Indemnity Clubs, which ensure 90% of the world’s ocean-going cargo and include 22 of the top 25 insurers.
The Matic Network provides free, instant, and secure Ethereum-based cryptographic token payments and transfers. The Layer 2 sidechain is compatible with the Ethereum Layer 1 mainnet and provides quality services in times when the original decentralized eco-system seems slow, expensive, and complex. The team aims to change that by simplifying the interaction between users and the decentralized world, make blockchain easy to use, without the need to worry about its complexity. Matic is backed by Coinbase, Binance, and MIH Ventures.