Crypto News Guides

What is Manta Network(MANTA)? How does It work? Complete Beginner’s Guide [2024]

Manta Network is a prominent project in the blockchain space, focusing on enhancing privacy for blockchain and DeFi (Decentralized Finance) applications. Through the use of cutting-edge cryptographic techniques and a privacy-first design, Manta aims to address the inherent transparency of existing blockchain technologies which often compromises user privacy.

History of the Project

Manta Network was conceptualized to address the lack of privacy in decentralized applications. Founded by a team of blockchain veterans and academic researchers, the project has steadily grown to attract attention from both privacy advocates and DeFi enthusiasts. Notable milestones include successful funding rounds and partnerships with major blockchain networks. The team’s background in cryptography and blockchain technology has played a crucial role in shaping Manta’s strategic direction.

What is Manta Network?

Manta Network is a privacy-preserving decentralized network that offers confidential transactions and private decentralized applications. It primarily aims to enable users to transact and interact with DeFi products while maintaining complete anonymity and security. The project leverages zk-SNARKs — a form of zero-knowledge proof technology — to ensure that transactions remain confidential and users’ identities and activities are not traceable.

How Manta Network Works

Manta Network is built on a sophisticated array of technologies specifically chosen to enhance user privacy while maintaining the interoperability and scalability essential for modern DeFi applications. The project distinguishes itself through its implementation of zero-knowledge proofs, a customized blockchain infrastructure, and a unique consensus mechanism.

Blockchain Framework

The Manta Network leverages a blockchain built on Substrate, a modular framework that enables the creation of purpose-built blockchains. Substrate is highly favored for its flexibility and the ease with which it can be customized to meet specific project needs. Manta’s use of Substrate allows it to operate as a parachain in the Polkadot ecosystem, benefiting from shared security and cross-chain interoperability. This setup enables Manta to conduct transactions not only within its network but also across other blockchains connected to Polkadot, thus expanding its reach and functionality in the DeFi space.

Consensus Mechanism

For consensus, Manta Network adopts a Nominated Proof of Stake (NPoS) model. This variation of proof of stake is engineered to optimize both security and efficiency. In NPoS, validators are selected based on the amount of stake delegated to them by token holders, who are incentivized through staking rewards to support the network’s operations. This mechanism reduces the energy consumption typical of Proof of Work systems and provides a more scalable and environmentally friendly alternative. Furthermore, it enhances network security by distributing the power to validate and produce new blocks among a broader set of stakeholders, thereby increasing the cost and complexity of potential attacks.

Privacy Technology: zk-SNARKs

A key technological pillar for Manta Network is its use of zk-SNARKs (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). This advanced form of zero-knowledge proof allows the network to verify transactions without revealing any information about the transaction contents or the parties involved. In practical terms, when a transaction occurs on Manta, zk-SNARKs enable the validation of these transactions while keeping the sender, receiver, and transaction amounts completely private. This technology sets Manta apart from many other blockchain projects, where the transparency of transactions can compromise privacy.

Differentiation from Other Projects

What sets Manta Network apart from other privacy-centric blockchain projects is its deep integration with the Polkadot ecosystem, leveraging shared security and parachain interoperability, combined with the advanced privacy features provided by zk-SNARKs. While other projects might focus solely on transaction anonymity or on scalability, Manta Network provides a holistic approach by addressing privacy, scalability, and interoperability in one cohesive platform. This blend of features makes it uniquely positioned to serve as a comprehensive solution for privacy-preserving transactions and applications in the DeFi sector.

Tokenomics of Manta Network: Understanding MANTA

Manta Network utilizes MANTA, which is a utility token within its ecosystem rather than a coin. This distinction is crucial as MANTA does not serve as a native cryptocurrency of a standalone blockchain but as a token that operates within the Manta Network’s Substrate-based infrastructure. MANTA plays a central role in facilitating network operations, from governance to transaction fee payment.

Role of MANTA in the Network

MANTA is primarily used for several key functions:

  • Governance: Token holders have the right to participate in governance decisions, including protocol updates and changes to network parameters, ensuring a decentralized and user-driven development path.
  • Staking: MANTA is staked by validators who participate in the network’s Nominated Proof of Stake (NPoS) consensus mechanism. Stakers secure the network and, in return, receive staking rewards, which are determined by the amount of MANTA staked and the total number of participants in the staking process.
  • Transaction Fees: MANTA is required to pay for transaction fees on the network. These fees are used to compensate validators and stakers for processing transactions and maintaining the network’s integrity.

Emission Model and Token Distribution

Manta Network has adopted a predetermined emission model designed to balance the supply of MANTA tokens with the growing demands of the network. The total supply of MANTA tokens is capped, which helps in preventing inflation and preserving the token’s value over time. A portion of the tokens was distributed during an initial offering, while others are allocated for rewards in the staking process, ensuring long-term participation and security for the network.

MANTA Token Price and Market Behavior

The price of MANTA tokens can fluctuate based on market conditions, investor sentiment, and the overall performance of the DeFi sector. Being an integral part of a privacy-focused DeFi platform, the value of MANTA is also influenced by the adoption rate of Manta Network’s services and the general demand for privacy in blockchain transactions.

Manta Network ensures a gradual release of MANTA tokens into circulation, which is strategically planned to coincide with developmental milestones and growth phases of the ecosystem. This approach mitigates the risk of market oversaturation and helps maintain the token’s economic stability.

Through its multifaceted utility within the network, capped supply, and strategic emission planning, MANTA stands out as a robust token designed to support privacy and scalability while incentivizing user participation and network security. As Manta Network continues to expand and evolve, the role and value of MANTA are expected to grow, aligning with the network’s broad adoption and technological advancements in the privacy-centric DeFi space.

Why is $MANTA Rising? Will The Rally Last?

Manta has been making waves across the crypto market recently. For instance, Manta Pacific, launched just under four months ago, has witnessed a massive increase in Total Value Locked (TVL) over the last quarter.

According to data from L2Beat, the network’s TVL has now surged past $1.48 billion, flipping Base, an Ethereum layer 2 solution backed by Coinbase, to become the third largest layer 2 scaling solution in the market.

The explosive growth in TVL can be attributed to Manta Network’s strategic initiative known as the “New Paradigm” campaign, which saw a staggering $850 million bridged within a mere three weeks.

This influx of funds has also resulted in a substantial increase in user engagement, with over 540,000 active wallet addresses and 8.2 million total transactions with an average of 140,000 daily transactions.

Likewise, Manta Atlantic is the fastest zero-knowledge (ZK) Layer 1 chain on Polkadot. Its core products and technologies suite, including zkNFTs and staking and ecosystem projects, offers user-friendly access to powerful ZK-enabled use cases.

Last week, Manta Network also carried out its highly anticipated airdrop of the MANTA token. The event took place on January 18 and saw 3% of the total token supply, or 30,000,000 MANTA tokens, allocated to Manta Atlantic and Manta Pacific users and supporters.

Where to Buy MANTA Tokens

MANTA tokens are available on several prominent cryptocurrency exchanges, providing ample opportunities for potential investors to participate in the Manta Network ecosystem. Here is a list of exchanges where MANTA can be purchased:

  • Binance: As one of the largest and most well-known cryptocurrency exchanges globally, Binance offers robust trading options for MANTA, including spot trading pairs with major cryptocurrencies.
  • HTX (formerly Huobi): HTX supports MANTA and provides users with a secure trading environment and various trading options such as futures and margin trading for more experienced traders.
  • MEXC: Known for its wide range of available cryptocurrencies, MEXC includes MANTA and offers multiple trading pairs, making it a versatile platform for diverse trading strategies.
  • Bybit: Bybit, primarily known for derivatives, also offers spot trading for MANTA. It is a good option for those looking to combine futures and spot trading in one platform.
  • KuCoin: This exchange is favored for its user-friendly interface and community participation in trading decisions. KuCoin offers MANTA trading and often features new and trending tokens.

These exchanges are known for their liquidity, security measures, and user base, making them reliable platforms for purchasing MANTA tokens.

Where to Store MANTA Tokens

When it comes to storing MANTA tokens, users have several options depending on their preference for security, convenience, and control:

  • Software Wallets: For those who prioritize ease of access and frequent trading, software wallets such as MetaMask and Trust Wallet are recommended. These wallets support tokens built on the Substrate framework, which includes MANTA. They offer an intuitive interface for managing and transferring tokens but remember that they are generally less secure than hardware wallets.
  • Hardware Wallets: For maximum security, hardware wallets like Ledger and Trezor are the best choices. These devices store tokens offline, significantly reducing the risk of hacks and theft. Both Ledger and Trezor have incorporated support for Substrate-based tokens, ensuring compatibility with MANTA.
  • Mobile Wallets: Mobile wallets offer a convenient way to manage cryptocurrencies on the go. Wallets such as Atomic Wallet and Exodus, which support multiple cryptocurrencies including MANTA, are suitable for users who prefer accessibility and simplicity.
  • Official Manta Wallet: For dedicated support and features tailored specifically for MANTA, the official Manta Wallet offers integrated solutions directly from the Manta Network. It is designed to interact seamlessly with Manta’s privacy features, providing an optimal balance of security and usability.

Choosing the right storage option for MANTA tokens will depend on individual needs for security, frequency of access, and user experience preferences. Each type of wallet offers different features, and it’s important to evaluate these against your personal requirements for crypto storage.

Future Prospects and Development Outlook

The growth prospects of Manta Network are anchored on several key factors, including its technological innovations, strategic partnerships, and the expanding market demand for privacy in digital transactions.

Growth Drivers

Technological Edge: Manta Network’s adoption of zk-SNARKs for privacy and its integration into the Polkadot ecosystem for interoperability and scalability provide a competitive advantage. These technologies address significant pain points in the current DeFi space, such as the lack of privacy and the difficulty of cross-chain interactions.

Client Base: The primary clients of Manta Network include DeFi users seeking privacy, developers looking for a secure environment to build private applications, and institutions requiring confidentiality for their blockchain interactions. As regulations around digital privacy tighten globally, the demand from these user segments is expected to rise, further driving the adoption of Manta’s solutions.

Partnerships: Manta Network has strategically partnered with key players in the blockchain ecosystem to enhance its offerings and extend its reach. Notable partners include:

  • Polkadot: For security and cross-chain interoperability.
  • Ocean Protocol: To integrate data privacy solutions for DeFi.
  • KILT Protocol: For adding verifiable credentials to enhance user privacy.

These collaborations not only enhance Manta’s technological capabilities but also expand its market presence by integrating with established networks and protocols.

Development Forecast

Manta Network is positioned for robust growth as it continues to expand its technological infrastructure and ecosystem. The roadmap includes upgrades to its privacy protocols, enhanced user interfaces for easier adoption, and expanded functionalities for its DeFi applications. With increasing awareness and demand for privacy, Manta Network is likely to see increased adoption rates among both individual and institutional clients.

Manta Network Ecosystem

The ecosystem of Manta Network is designed to be comprehensive and inclusive, facilitating a variety of applications and services centered around privacy and security. Key components of the ecosystem include:

  • MantaPay: A privacy-preserving payment protocol that enables private transactions.
  • MantaSwap: A decentralized exchange that provides private token swaps, ensuring that users’ identities and transaction details remain confidential.
  • MantaWallet: The official wallet of the network, optimized for privacy and security of assets.
  • Developer Tools: A suite of tools and APIs for developers to create private and secure applications on the Manta platform.

This ecosystem not only supports Manta’s core privacy mission but also creates a vibrant environment where developers and users can interact securely and privately. As the network expands and integrates more functionalities, the value proposition for users and developers is expected to grow, further driving the network’s adoption and success.

Manta New Paradigm Campaign

Manta Network started to gain significant traction in mid-December 2023, when they launched a new campaign Manta New Paradigm, a slight dig at Layer-2 Blast, which drew controversy over its stake-for-points campaign earlier in 2023. Much like Blast, Manta Pacific sought to allow depositors on the chain to earn yield on their tokens through stakingairdrop rewards and DeFi applications to introduce composability to yield-bearing tokens.

In this campaign, users could deposit ETH or USDC onto the Manta Pacific L2 via the Manta Pacific official bridge. Users who deposited would then receive their respective liquid staking derivative tokens, which could then be used on the Manta Pacific chain in DeFi applications. This was achieved through partnerships with omni-chain staking solution, StakeStone, and yield-bearing stablecoin protocol, Mountain Protocol.

ETH depositors received STONE tokens, which earned yield from native staking on the Ethereum L1, while USDC depositors received wUSDM, earning yield from the US Treasury Bills that Mountain Protocol invests in. The original deposited tokens were then locked, with users only able to withdraw their initial token deposits 69 days after the distribution of the MANTA token airdrop.

Beyond just earning native staking yields and airdrop rewards, the New Paradigm campaign also boasted additional yield through DeFi applications which were already live on the chain, additional incentives from ecosystem projects as well as yield from EigenLayer through restaking stETH. This was in contrast to Blast, whose testnet was not live at that point.

Source: Manta New Paradigm Campaign

As part of the campaign rewards, users also earned Box Pieces based on the amount deposited into the campaign as well as the amounts deposited by the users they referred to the campaign. Once a user has earned 25 Box Pieces, they would be combined into a Common Lucky Box. These Common Lucky Boxes could be opened to yield one of six different NFTs of varying rarities. A 7th NFT, “The First Modular L2”, could also be obtained by burning one of each of the six different NFTs.

Beyond the usual Common Lucky Box, Frenzy Growth Lucky Boxes were also available. Each Common Lucky Box has a chance to turn into a Frenzy Growth Lucky Box, which would yield a random set of between two and twenty NFTs from the collection. The chances of this occurring is based on the Frenzy Growth Percentage, which starts at 1% but increases by 5% every time a Common Lucky Box opened is not a Frenzy Growth Lucky Box. Once the user obtains a Frenzy Growth Lucky Box, the percentage is reset again to 1%. Users can also increase their percentage by hitting team goals such as 5 ETH or 20 ETH deposited as a team.

Conclusion

Manta Network stands out in the blockchain and DeFi landscape due to its robust privacy features and strong foundation in advanced cryptographic research. For advanced users and investors looking to leverage privacy in their blockchain interactions, Manta offers a promising avenue with significant strategic potential. As the landscape evolves, Manta’s commitment to privacy and user security makes it a critical project to watch in the ever-expanding realm of decentralized finance.

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The Information provided on this website article does not constitute investment advice ,financial advice,trading advice,or any other sort of advice and you should not treat any of the website’s content as such.

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