While many projects are fighting for Ethereum killer status, some projects aim to solve the problems of the main smart-contracts network and make it easier and more effective to use. Polygon is one of them.
It began as a Layer 2 solution for Ethereum but has since shifted vector and offered solutions for building networks of secure stand-alone sidechains compatible with Ethereum and other blockchains, basically the Internet of Blockchains.
The goal of the project is to create “a world in which communities thrive, unconstrained by artificial borders and archaic regulations”.
As the price of Polygon’s native coin, Matic, has risen by more than 100 times in a year, the community probably believes in the project.
What is (Matic) Polygon?
Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks.
It is a Layer 2 solution for Ethereum and stand-alone sidechains networks that aim for scalability and lower transaction costs.
Practically speaking, this means that Matic users can transfer assets from Ethereum to another blockchain for transactions, reducing the load on Ethereum as a result.
On Polygon, it is possible to implement roughly the same tasks and with the same level of security as on Ethereum, but significantly faster (over 7 million transactions per day) and cheaper.
Currently, one Polygon sidechain can theoretically handle 2^16 (65,000+) transactions per second.
Polygon uses the Proof-of-Stake (PoS) consensus mechanism.
The network links different versions of Ethereum-based scaling solutions. Polygon SDK, a flexible, modular framework for launching new blockchains using different scaling technologies, plays a key role in this process.
Polygon is not the first or only attempt to solve the problems of the Ethereum network. The project’s competitors include Polkadot, Cosmos, and Avalanche.
The developers of Polygon believe that these projects offer partial solutions, while Polygon is a complex solution that offers:
- Easy deployment of ready-made blockchain networks
- Rising set of modules for developing customized networks
- Interoperability protocol for exchanging arbitrary messages with Ethereum and other blockchain networks
- Modular and optional “security-as-a-service”
- Adapter modules to provide interoperability for existing blockchain networks
Until February 2021, the project was called Matic Network. The rebranding was in conjunction with the transition from a Layer 2 solution for the Ethereum blockchain to a multichain system.
Architecture
The Polygon architecture has 4 abstract compatible layers:
- The Ethereum layer (optional) is a set of smart contracts that are implemented in Ethereum. Smart contracts are responsible for things like transaction finality, stacking, dispute resolution, and message relaying.
- Security layer (optional) – manages a set of validators that verify the security of any chain for a fee. It can run in parallel with Ethereum and is responsible for validator management (registration/deregistration, rewards, rotation, etc.) and validation itself. The role of the layer is “security as a service”.
- The Polygon networks layer (mandatory) is an ecosystem of sovereign blockchain networks built on Polygon. Each has its community and is responsible for transaction matching, local consensus, and blocks generation. Networks can use the Polygon protocol to communicate with each other and exchange arbitrary messages.
- Execution layer (mandatory) – identifies and executes transactions that are agreed upon and included in the Polygon blockchain network.
Polygon chains
Polygon supports 2 main types of Ethereum-compatible blockchain:
- Stand-alone chains: compatible with Ethereum, assuming own validator pool, flexible and independent.
- Secured chains: leverage “security as a service”, no validator pool, high level of security thanks to professional validators or Ethereum security, lower level of flexibility and independence.
Polygon chains can interact with each other as well as with the main Ethereum chain.
Who is behind the project?
Polygon’s co-founders are Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.
An experienced development team with a strong background before leaving for a new project worked in the Ethereum ecosystem.
They created the Plasma Chains scaling model and the Ethereum Matic PoS Chain sidechain based on Proof-of-Stake (PoS).
The Polygon (formerly Matic Network) testnet was launched in October 2017, and in April 2019 the company launched an IEO of the MATIC token and raised $5.6m.
Goals and mission
The goal of the project is to create a hassle-free environment for blockchain interactions, connecting blockchains into a network without borders or intermediaries, where users can use any decentralized applications and exchange values without unnecessary obstacles.
With Polygon, any project can create a customized blockchain network that integrates the advantages of autonomous blockchains (sovereignty, scalability, and flexibility) and Ethereum (security, interoperability, and developer expertise).
What is Polygon crypto and what is its purpose
The cryptocurrency MATIC is a native coin of the Polygon network.
What is MATIC crypto functions:
- to pay for the transaction fees in the network
- for stacking, which guarantees the network’s security by verifying transactions.
The protocol incorporates a deflationary mechanism for burning a percentage of the transaction fee in each block.
In theory, being deployed on Ethereum, the Polygon network could use Ether as a currency to pay fees. But Polygon has its ecosystem and assumes to work with other blockchains. It is, therefore, safer and more efficient not to depend on the cryptocurrency of an existing project but to have its native asset.
In addition, the own asset will be used to maintain the liquidity pool of Polygon when exchanging dApp tokens, rolling out new projects, and paying fees to validators.
What is Matic coin price and where you can buy coins?
The price of Matic is around $2.5 (as of January 2022) and ranks 14th in terms of market capitalization according to Coinmarketcap. After launching Polygon in January 2021, the rate of Matic jumped from $0.02 to $2.45 – more than 100 times during one year. It can be bought on the top cryptocurrency exchanges.
After purchase, don’t forget to withdraw the asset to a more secure non-custodial wallet, like Trustee Wallet. The Wallet, in addition to storage, supports basic Matic coin transactions: receiving, sending, and exchanging to other cryptocurrencies.
For stacking Matic cryptocurrency you can use the network’s original Matic (Polygon) Wallet.
Despite the high competition, the project remains promising and the currency continues to grow in value. When buying Matic crypto, remember that investing in a volatile cryptocurrency is always a risk. Be sure to make your decision thoroughly informed.
If you have any ideas or feedback, feel free to share them in the comments below this article!
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