What is Polygon? MATIC explained
Polygon is a collection of protocols created to solve Ethereum’s issues with scaling. The Polygon network tackles the challenges of the network by processing transactions on a separate Ethereum-compatible blockchain.
Polygon is then able to return transactions back in the primary Ethereum blockchain for post-processing. This method reduces the load for Ethereum. This way, Polygon can speed up transactions, and cut down on the cost of transactions to less than a penny.
In the same way, Polygon, formerly known as Matic network, offers an easy framework that allows existing and new blockchain projects to build upon Ethereum without any issues of scalability.
Utilizing Polygon it is possible for users to interact using every distributed application (DApp) and without worrying about the network’s congestion.
This guide explains all you need to learn regarding Polygon Matic. It will explain the Polygon Matic platform, including how Polygon operates and how this unique technology makes Ethereum more user-friendly.
Who is responsible for Polygon?
Polygon has solidly established its status as the most promising Ethereum project for scalability due to its extremely skilled team of developers. The team’s expertise remains the primary driver behind Polygon’s expansion.
The people who developed the Matic network are credited with recognizing the requirements of the present-day cryptocurrency industry. In the next section, we will look at who’s responsible for one of the sector’s most rapidly growing projects.
Three founders from Polygon
Cofounder Jaynti Kanani is the current Chief Executive Officer of Polygon. The project was created by him along with Sandeep Nailwal, cofounder and chief operating officer and Anurag Arjun cofounder and chief product officer. The group created Polygon in the year 2017. The company was referred to as Matic Network.
Initially, the funds of family and friends from Mumbai were used to help fund the venture. However, even though Polygon is rooted in India Polygon continues to draw investors from around the world. Polygon has raised more than $450,000 over two rounds of funding for startups in the year 2019. Polygon has around $450 million in funds from a variety of investors.
Balaji Srinivasa, an angel investor, as well as Mark Cuban, the billionaire is among Polygon’s list of supporters growing.
Do MATIC and Polygon are the identical?
What is the different in Polygon What is the difference between Polygon and Matic network? Prior to the time that the project changed its names in February of 2021 Polygon was called Matic network. The Matic network offered one main service that was plasma sidechains.
Plasma chains work similar to side chains, however they provide greater security in exchange for greater convenience. Contrary to sidechains Plasma chains post their “root” on Ethereum layer 1 and work on the assumption that their consensus mechanism could fail. This makes it more secure but also renders them ineffective for complex operations.
When the project grew, Polygon opted to keep the ticker MATIC to represent its native token. This is why the Matic network was transformed into Polygon. The name change and subsequent rebranding could cause some confusion, however they are the same entity. Polygon will be the umbrella that covers multiple projects, which includes Matic, which is the Matic network. Polygon (MATIC) is the Polygon ( MATIC) token is the native currency of Polygon.
What is Polygon? Polygon operates
The Ethereum blockchain is able to perform the limited amount of transactions every second. The throughput rate is approximately fourteen transactions per second on the basic layer. Every transaction incurs cost for transactions that are known as gas fees for Ethereum.
The cost of gas increases in times of traffic on the network. Ethereum gas prices can go up quickly , reaching as high as $50-$80. This is an enormous problem. The requirement to pay more than $50 for every transaction makes Ethereum completely out of reach for the majority of users.
Network congestion makes it difficult to run the Ethereum blockchain process more slow and discourages users from using intelligent contracts using the Ethereum blockchain.
These issues could quickly amount several hundred dollars in charges for those who use Decentralized Finance (DeFi) applications and protocols to trade or purchase non-fungible tokens (NFTs) and swaps, purchases, or transfers tokens to Ethereum.
What is the best way to Polygon help to make this less expensive? To reduce gas expenses Scaling solutions such as Polygon manage transactions using side chains. Polygon can handle as many as 65,000 transactions per second while Ethereum can only process about 17 transactions per second.
Furthermore, Polygon is able to offer these fees to users at a cost of pennies. Compare that to Ethereum’s typical transaction cost of about 15 dollars per transaction. Because Polygon is a collection of protocols that include Zero-Knowledge (zk) proof type Users can select the most appropriate scaling option to their requirements.
In cryptography, zk proves are a cryptographic standard to verify to a different person (the verifier) the validity of a specific statement. is legitimate. However the prover isn’t obliged to provide any additional information apart from the fact the statement is valid.
There are a variety of options that project teams have to incorporate using Polygon The most well-known are the plasma sidechains, an Proof-of-stake (PoS) blockchain bridge zk rollups , and optimistic rollups. Matic started with the plasma sidechains that are less bulky and safer sidechains that are lighter and more secure.
Similar to sidechains similar to sidechains, plasma chains are similar to sidechains. plasma chain is a different blockchain that is run alongside the main blockchain. In this instance, Ethereum is the “primary” or “parent” blockchain. Plasma chains connect to connect to the primary blockchain in order to permit funds to move between them safely.
Due to the booming demands from the developers Polygon has added the Blockchain bridge to its product range. The PoS bridge lets developers develop DApps on a single platform without needing to compromise the advantages that other platforms offer.
Processing transactions in batches using its own PoS blockchain removes the requirement to allow Ethereum for processing all files it has on its own. By batching transactions from the primary chain Polygon can make Ethereum lighter and more efficient.
Zk rollups analyze bundles of transaction on-chain and generate validity proofs checking that every group of transactions is valid. Validity proofs are transferred directly to blockchains.
Each validity proof functions as an intermediary for the bundle that it represents, which decreases the volume of information that is stored that is stored on the chain. This method decreases the amount of time and costs required to verify the validity of a transaction block.
Optimistic rollups utilize another type of verification system known as fraud proofs. When a fraudulent transaction has been detected, a fraud proof protocol auto-executes and decides on the correct transaction based upon the information that is available on the blockchain.
Anyone who updates transactional information on the system must stake ETH. In the event that anyone makes fraud in the central Ethereum chain, using unrealistic rollups, the stake of the person is cut.
Polygon acknowledges that there is no one best solution that can be used for every application. Each scaling option comes with compromises in security, sovereignty fee for transactions, transaction fees and speed. Developers should be able to select the appropriate solution to scale their application. Additionally, Polygon offers the most complete range of scaling options.
What makes Polygon an excellent choice for Ethereum?
Polygon isn’t competing with Ethereum. In fact, it’s dependent on Ethereum and the reverse is true. The goal of Polygon is to leverage the Polygon network to build a system that can cope with the widespread acceptance of Ethereum. This means that Polygon relies more upon Ethereum more than Ethereum is dependent on Polygon. This is not surprising since Polygon has been built using Ethereum’s blockchain.
The biggest drawback is that using Polygon to speed can reduce the benefits of Ethereum. The value dilution could actually hamper the growth of Ethereum’s users directly in specific areas.
For instance, Polygon improves Ethereum and that is why more people will be using it. Ethereum blockchain. As more people lock their assets on the Ethereum blockchain, the value will increase despite the risk of taking the all worth that is locked (TVL) out of Ethereum.
Polygon (MATIC) in contrast to. Ethereum Layer 1
At first glance, layer 2 scaling solutions can seem complicated. In simpler words, layer 1 is the blockchain’s base architecture. Layer 2 however, on the contrary side, is atop of the blockchain’s base in the form of an overlaying system.
Layer-2 solutions are protocols that communicate with the blockchain base to improve speed and effectiveness. Additionally, using layers-2 solutions like Polygon or Polygon, the protocols already running on top Ethereum are able to become faster and less expensive.
Why do we use Polygon instead of Ethereum Layer 1?
Ethereum was developed using an auction model, making it easier for users to bid for their transactions to be part of the following block. Thus, in the end the more congestion on the network results in increasing costs.
Polygon has ambitious goals for the future and they’re not limited to speeds or cost of transactions. Polygon’s goal is to link every Ethereum Virtual Machine (EVM)-compatible blockchains to one another which will allow developers to take advantage of the advantages of other blockchains with the least amount of friction.
Isn’t Ethereum 2.0 eliminate the requirement for Polygon?
Ethereum 2.0 will provide a significant upgrade for the Ethereum blockchain, however it’s only an incomplete solution to the problem of scaling. As increasing numbers of DApps and decentralized platforms use solutions that are on-chain like Eth2 the demand could begin to exceed the limit of scaling.
As previously mentioned, this causes a rise in network traffic. Gas prices start to increase and the network is with the same load requirements like before. This is the point at which Polygon can help by offering its Ethereum blockchain, which has an extra layer of scaling.
Layer 2s, such as that of the Polygon network will enhance the user experience Eth2 will be able to provide. Any Ethereum upgrade could be made even faster by layer 2. In this way, Polygon ensures that the user gets the most efficient experience.
Ethereum 2.0 is a bit of distance away, however scalability is a problem that has been long recognized from Ethereum creator Vitalik Buterin, who was the Trilemma problem. The solution of Polygon can bring some of the advantages of Eth2 to the users, so that they can benefit from the speed increase and transparency, as well as lower costs, and all without the need to wait for the launch of Eth2.
Solutions for scaling Layer 2 competitors
Polygon isn’t the only one that aims to improve the speed of Ethereum transactions. The data from the network for Ethereum indicates that the volume of daily transactions growing. Solutions that use Layer-2 are the ideal method to deal with this growing burden of Ethereum’s Ethereum blockchain. It’s important to mention that the advantages go far beyond just transferring transactions.
Many competing layer-2 networks let transactions be processed externally , and later connected to the main blockchain network. Some of the most well-known alternative layer 2 networks to Polygon are based on zk-proofs the two most well-known rivals include Arbitrum and Optimism.
Polygon has an TVL of around $4 billion. TVL is the value of the crypto asset users have committed to protocols on an internet. In comparison to Polygon and Polygon, data from DappRadar indicates that Loopring, the zk-rollup protocol has an estimated TVL of $290 million.
It’s not a secret that Polygon has some formidable competitors and all Ethereum layer-2 projects are able to positively influence the blockchain ecosystem. However, as Polygon has been investing a lot in various types of zk-proofs the layer-2 solution has shown tremendous promise as a viable solution to Ethereum scaling.
What is it that makes Polygon unique?
What does it make Polygon distinguish itself from counterparts on the layer 2? Polygon is the one platform that lets its MATIC token which is a staked token, to be secured in the Polygon blockchain. Staking allows users to earn interest each year for helping to validate transactions made on the blockchain.
Polygon provides solutions to individuals, developers, and companies alike. Polygon’s main goal is to build the Internet of Things (IoT) that is compatible with Ethereum. Ethereum blockchain. The goal is to expand Ethereum to one billion users , without compromising security or decentralization.
What makes Polygon different in comparison to the other L2 solutions is the way it approaches. Polygon provides developers with a variety of solutions within a single network. This method gives developers greater levels of control and flexibility when selecting a scaling option most suitable for their particular application.
On Polygon the developer has the option to select between optimistic or zk-rollups rollups. They could choose to make use of Polygon Avail instead, an extremely secure blockchain for data availability that can be used as a standalone chain, sidechains and scaling solutions off-chain.
In May 2021 in 2021, Polygon announced that in May 2021, the Polygon group announced release of its Polygon SDK which will make the process of creating multichain networks much simpler for developers. By using this Polygon SDK, developers can build independent chains that are accountable to their own security. The sidechains created as standalones will have the benefit of a specific PoS bridge network to connect these sidechains to Ethereum.
Polygon also offers other methods of scaling, such as its PoS commit chain. For ease of use this commit chain usually just referred to as Polygon and it’s Polygon blockchain. Polygon’s PoS sidechain is the most well-loved product of the project. Since its launch it is estimated that the Polygon blockchain has processed more than one billion transactions according to the data of polygonscan.com.
PoS commit chain PoS commit chain works EVM-compatible , and therefore, it is fully compatible with a variety of Ethereum protocols. Therefore, the process of moving DApps to different platforms will be easy for developers.
In contrast to the other EVM sideschains Polygon makes checkpoints available to Ethereum. Particularly, every when Polygon handles a transaction it sets up a couple of points on Ethereum. These checkpoints make sure that the information was processed by Polygon up to this point is secure and is suitable to be used on to be stored on the Ethereum blockchain. It is important to note that the other EVM sidechains do not have checkpoints.
What exactly is what is the Polygon MATIC token used for?
MATIC is Polygon’s primary cryptocurrency token. Plasma chains of Polygon run using PoS, the PoS the consensus system. MATIC is utilized to fund all transactions that occur on the chain. Thus, the more projects that utilize Polygon as an alternative to scaling the higher the requirement for MATIC.
Furthermore, MATIC serves as a governance token, granting holders the ability to decide which of the various scaling options that are planned to be implemented.
If the community appreciates an innovative layer-2 scaling method and wishes Polygon to incorporate it holders of the MATIC token have the option of deciding if the new solution is included in Polygon’s line of products. Governance voting allows MATIC owners to cast their votes on the future direction of Polygon.
Are Polygon an investment that is worth the money?
Ethereum is the first and biggest blockchain network that has smart contract capabilities. The currency it uses, Ether ( ETH) has an estimated market capitalization of 350 billion dollars, making it the second largest cryptocurrency by market capitalization. Any initiative that is able to consistently increase the efficiency of Ethereum will probably gain enormous acceptance and support.
Users of cryptocurrency think that Polygon an investment worth making because of a number of reasons. Polygon is a project that could end up being the primary second-layer solution for Ethereum. The team is energetic and strong and is determined to pursue amazing partnerships. Polygon provides solutions to issues that Ethereum users have complained about for decades. In the course of the years, Polygon has proven to be reliable.
With a market cap of approximately 11% billion dollars, MATIC ranks among the most popular cryptocurrencies. Additionally, MATIC’s maximum supply is limited to 10.4 billion MATIC. The total supply of MATIC tokens is about 7.5 billion of the 10 billion. With this limited supply, it’s possible that the market demand of MATIC tokens could exceed the supply, resulting in positive price movements.
How do you invest in the cryptocurrency Polygon? Polygon cryptocurrency
The investment in the Polygon cryptocurrency project is as easy like investing Bitcoin or Ethereum. The easiest method is to find a crypto exchange that allows you to purchase MATIC. MATIC token. Customers can also opt to invest in MATIC and earn annual reward.
Where to purchase the Polygon cryptocurrency
Polygon (MATIC) can be purchased through popular cryptocurrency exchanges such as Coinbase or Binance. The only requirement is to create an account, locate the MATIC tokens, and then purchase them.
The most experienced cryptocurrency users may choose to purchase Polygon tokens through DEXs (DEXs) such as Uniswap. The purchase through a DEX such as Uniswap is done by wrapping Ethereum (wETH) which is an ERC-20 token which allows users to trade ETH through decentralized platforms. MATIC tokens can also be kept in the Polygon wallet.
What exactly is what is a Polygon wallet?
A Polygon wallet lets users send and receive crypto currency and put a bet on MATIC with Polygon’s network to earn interest, stake MATIC on the Polygon blockchain to generate interest, and gain access to Polygon bridge to access the Polygon bridge for deposit funds and withdraw funds between blockchains.
The Polygon project gives users a web-based wallet that is non-custodial that lets them manage their tokens via the Polygon network. The non-custodial wallets grant only the control of key private to users. Be aware, however, that any wallet compatible with ERC-20 can contain MATIC.
How do I get the Polygon wallet address
The MATIC token is available to purchase and transferred onto every Polygon account. After the MATIC tokens are purchased they should locate the most appropriate Polygon wallet to keep the tokens in.
Popular cryptocurrency wallets that work with Polygon are MetaMask and Ledger which is the latter which is a physical wallet that can be connected to MetaMask and provides additional security. Furthermore, centralized lending platforms such as Celsius and Nexo provide attractive annualized yields on MATIC.
Is it the right moment for you to buy Polygon (MATIC)?
Like every article it is not investment advice. But, considering the vast extent that is this Polygon project, its constant announcements about partnerships and advances in cryptographic technology, Polygon is performing exceptionally well. Polygon has earned an impressive reputation and its MATIC token has managed to stand out from the hundreds of others on Ethereum.
Polygon’s partners list is growing quickly. Some notable partners include Ocean, Chainlink, Atari and, more recently, Coinbase is now a part of the group. A lot of investors view Polygon to be undervalued and could have a point.
In the meantime, until Ethereum 2.0 is launched fully and fully operational, it’s difficult to know how reliable the Polygon project will be. There is however a significant possibility for the market to grow as the project grows. The biggest concern is what happens if the Polygon project could begin to take over part of the TVL that is secured on Ethereum. Ethereum base layer. However, it remains to be determined.
Comparatively to its rivals, Polygon stands out clearly as a layer-2 option to reckon with. Even though Polygon is still a new technology, it appears like the most promising scaling Ethereum effectively, for instance maintaining decentralization and increasing the size of the network without sacrificing security.