  The analysis of (2+1)-dimensional Yang-Mills ($YM_{2+1})$ theory via the use
of gauge-invariant matrix variables is reviewed. The vacuum wavefunction,
string tension, the propagator mass for gluons, its relation to the magnetic
mass for $YM_{3+1}$ at nonzero temperature and the extension of our analysis to
the Yang-Mills-Chern-Simons theory are discussed.
