What is Polygon (MATIC) and What to Expect

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The article delves into Polygon (MATIC), a Layer 2 scaling solution for Ethereum. Initially known as Matic Network, Polygon aims to tackle Ethereum's scalability challenges, offering improved speed and reduced gas fees. The MATIC token is pivotal, operating within Polygon's Proof-of-Stake consensus, enabling users to secure the network and earn rewards. Noteworthy is the distinction between MATIC and Polygon – while MATIC is the native utility token, Polygon stands as the network infrastructure. The article explores the questions of what is Polygon crypto, Polygon's advantages, ecosystem diversity, and community engagement, acknowledging its rebranding and ambitious roadmap. It also touches on potential challenges such as security dependencies on Ethereum and competition in the scaling solutions space. Despite hurdles, Polygon's positive market sentiment and commitment to innovation position it optimistically for the future.

Key Takeaways

1. Polygon (MATIC) addresses Ethereum's scalability challenges as a Layer 2 scaling solution.
2. MATIC token holders actively secure the network and earn rewards through Polygon's Proof-of-Stake consensus. As an ERC-20 token, it seamlessly integrates with Ethereum, ensuring broad accessibility.
3. Polygon fosters a rich ecosystem of decentralized applications (dApps) spanning gaming, DeFi, NFTs, and social networks.
4. Polygon's roadmap includes the launch of the Polygon Ecosystem Token (POL) and various scaling solutions, showcasing commitment to innovation.

What is Polygon (MATIC)

To start the story about Polygon (MATIC), Polygon, formerly known as MATIC Network, is a Layer 2 scaling solution for Ethereum that aims to provide major scalability improvements for decentralized applications by utilizing a novel side-chain architecture. Launched in 2017, Polygon allows for the creation of dedicated blockchains for complex dApps, with the goal of providing a solution to slow block confirmations and high gas fees that often plague the Ethereum mainnet. The platform operates using the Ethereum blockchain and connects Ethereum-based projects, increasing the flexibility, scalability, and sovereignty of a blockchain project while still affording the security, interoperability, and structural benefits of the Ethereum blockchain. 

To answer the question of what is MATIC crypto - MATIC token, which is the native token of the Polygon platform, plays a crucial role in the functioning and maintenance of the network. Originally an ERC-20 token on the Ethereum network, MATIC has now evolved to have more functionalities. It is used for a variety of purposes within the Polygon ecosystem, including participating in the network’s proof-of-stake consensus mechanism and paying for transaction fees.

MATIC token vs. Polygon network

MATIC and Polygon are not the same thing; instead, MATIC is the native utility token of the Polygon network. It is used for various purposes within the Polygon ecosystem, such as paying for transaction fees and participating in the network’s proof-of-stake consensus mechanism. On the other hand, Polygon is a Layer 2 scaling solution for Ethereum. It is a framework for building and connecting Ethereum-compatible blockchain networks. In summary, while MATIC is a cryptocurrency that fuels the Polygon network, Polygon itself is a network infrastructure offering scalability solutions for Ethereum. This is a very important aspect to cover when talking about Polygon (MATIC) explained.

As a native token of the platform, MATIC is deeply integrated and essential for its functioning. Some of the key features of the token are:

1. Proof-of-Stake: MATIC tokens are used in Polygon’s proof-of-stake consensus mechanism. This means that token holders can help secure the network and earn rewards.
2. Transaction fees: Transactions on the Polygon network require payment in MATIC tokens. This gives the token a fundamental utility value.
3. Deflationary supply: The total supply of MATIC tokens is capped at 10 billion, and the protocol is designed to reduce the total supply over time, potentially increasing the value of remaining tokens.
4. Interoperability: As an ERC-20 token, MATIC is compatible with the Ethereum network and can be stored in any wallet that supports ERC-20 tokens. This makes it accessible and easy to use for anyone familiar with Ethereum.

Polygon (MATIC) price, supply and Market cap

Polygon - how does it work

For those wondering is MATIC decentralized - Polygon and its token previously known as Matic Network, operates as an Ethereum layer-2 scaling solution. Its objective is to provide a platform for establishing and connecting blockchain networks that align with Ethereum. Polygon operates by constructing a network of decentralized nodes that link to Ethereum. This side-chain uses the Proof-of-Stake (POS) consensus algorithm. It also uses Plasma, a technology similar to Lightning Network (LN). Polygon uses the Proof-of-Stake method to validate each transaction added to the blockchain.

Proof of Stake (PoS)

This is a consensus mechanism that allows users to stake their tokens to validate transactions and earn rewards. Polygon uses a PoS chain as a Commit Chain to the Ethereum mainchain, which means that it periodically submits a compressed representation of the transactions on Polygon to Ethereum. This way, Polygon benefits from the security and decentralization of Ethereum, while offering faster and cheaper transactions on its own network. Polygon’s PoS chain can support up to 65,000 transactions per second (TPS) and has a block time of 2 seconds. Polygon’s PoS chain also has a network of validators and delegators who stake their MATIC tokens to secure the network and earn rewards.

Proof of Work (PoW)

This is a consensus mechanism that requires miners to solve complex mathematical problems using their computational power to verify transactions and create new blocks. PoW is the original consensus mechanism of Bitcoin and Ethereum, but it has some drawbacks such as high energy consumption, low scalability, and vulnerability to 51% attacks. Polygon does not use PoW as its main consensus mechanism, but it supports PoW-based side chains that can run on top of Polygon. These sidechains can use any PoW algorithm and can interoperate with Polygon’s PoS chain and Ethereum. Polygon also provides a PoW sandbox called Polygon Studio, where developers can experiment with PoW-based applications without the high costs and risks of the mainnet.

Blockchain Polygon (MATIC) operates on 

Many are getting confused between the two, and start asking questions like is Polygon a blockchain.

Polygon operates as an Ethereum layer-2 scaling solution. It provides a platform for establishing and connecting blockchain networks that align with Ethereum. The Polygon platform operates using the Ethereum blockchain and connects Ethereum-based projects. Polygon uses a mic of modified proof-of-stake consensus mechanism and proof-of-work that enables a consensus to be achieved with every block.

What Makes Polygon Unique?

Some of the unique features of Polygon are:

1. It offers a modular and flexible framework that allows developers to choose the scaling solution that suits their needs, such as sidechains, rollups, or bridges.
2. It provides a user-friendly and developer-friendly environment that supports the Ethereum Virtual Machine (EVM), smart contracts, and various programming languages and tools.
3. It enables a rich and diverse ecosystem of decentralized applications (dApps), such as gaming, DeFi, NFTs, and social networks, that benefit from Polygon’s high speed and low cost.
4. It fosters a strong and active community of users, developers, validators, and partners that contribute to the growth and innovation of Polygon.

Hopefully, this shed some light onto the Polygon crypto explained.

Who created Polygon?

Polygon was created by a team of experienced blockchain developers and entrepreneurs from India. Polygon MATIC founders are:

1. Jaynti Kanani, CEO and co-founder, who is a full-stack developer and a former data engineer at Housing.com.
2. Sandeep Nailwal, COO and co-founder, who is a blockchain programmer and a former CTO of ScopeWeaver.
3. Anurag Arjun, CPO and co-founder, who is a product manager and a former AVP of Product Management at IRIS Business.
4. Mihailo Bjelic, CRO and co-founder, who is a blockchain researcher and a former consultant at Deloitte.

History of Polygon

Polygon was originally known as MATIC, and it was founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic in 2017. The team is based in India and created MATIC to provide solutions to blockchain scaling and usability. They launched the MATIC mainnet in June 2020. MATIC rebranded to Polygon in February 2021. As part of the rebrand, the project pivoted from being purely an Ethereum sidechain to a multichain system that could compete with Polkadot.

Beginnings 

Polygon was originally launched as Matic Network in October 2017, as a project that aimed to provide scalable and instant transactions for Ethereum using an adapted version of Plasma. Matic Network conducted its initial exchange offering (IEO) on Binance in April 2019, raising $5 million. In June 2020, Matic Network launched its mainnet with the first set of validators.

Expansion

In February 2021, Matic Network rebranded to Polygon, expanding its vision and scope to become a platform for building and connecting Ethereum-compatible blockchain networks. Polygon also announced its support for other scaling solutions, such as zk-rollups and optimistic rollups, as well as interoperability protocols, such as Polkadot and Cosmos. Polygon also partnered with various projects and platforms, such as Aave, Decentraland, SushiSwap, and OpenSea, to integrate its scaling technology and grow its ecosystem.

Rebranding

In October 2021, Polygon announced its new token contract on Ethereum for POL, dubbed the “Polygon Ecosystem Token”. POL is intended to eventually replace MATIC as the native token of Polygon, with a 1:1 swap ratio. POL is designed to have more functionality and utility than MATIC, such as re-staking, burning, and governance. POL is expected to launch in early 2022, after a thorough audit and testing process.

The major stakeholders of Polygon 

Polygon has partnered with more than ten top-tier brands. Companies like Coca-Cola, Starbucks, Reddit and others have launched their non-fungible tokens as an introductory web 3 product.

The major stakeholders of Polygon are:

1. The Polygon Foundation, which is a non-profit organization that supports the development, research, and education of Polygon. The foundation is led by the co-founders of Polygon and has a board of advisors that includes Vitalik Buterin, the co-founder of Ethereum.
2. The Polygon team, which consists of over 100 members, including developers, researchers, marketers, and community managers. The team is distributed across the globe and works remotely.
3. The Polygon validators, who are the nodes that run the Polygon network and secure its transactions. Validators are required to stake MATIC tokens and earn rewards and fees for their service. Validators can also delegate their stake to other validators or accept delegations from other users.
4. The Polygon users, who are the individuals and entities that use Polygon’s network and services. Users can interact with various dApps, such as gaming, DeFi, NFTs, and social networks, that are built on Polygon. Users can also stake MATIC tokens and earn rewards by delegating to validators or participating in governance.
5. The Polygon developers, who are the creators and builders of dApps and solutions on Polygon. Developers can use Polygon’s framework and tools to create scalable and interoperable blockchain networks that are compatible with Ethereum. Developers can also access Polygon’s ecosystem and community to grow their user base and network effect.
6. The Polygon partners, who are the projects and platforms that collaborate and integrate with Polygon. Partners can leverage Polygon’s scaling technology and network to enhance their performance and user experience. Partners can also contribute to Polygon’s innovation and vision by sharing their expertise and resources.

How Is Polygon (MATIC) Different To

Polygon differs from other popular blockchain platforms in several ways, such as:

Polygon vs. Ethereum (ETH)

Ethereum is the leading blockchain platform that supports smart contracts and dApps. However, Ethereum suffers from scalability issues, such as high transaction fees and low throughput. Polygon is a Layer 2 solution that enhances Ethereum’s scalability and interoperability, while maintaining its security and decentralization. Polygon also leverages Ethereum’s robust ecosystem and community, as well as its compatibility with the EVM.

Polygon vs. Loopring (LRC)

Loopring is a Layer 2 scaling solution that focuses on decentralized exchanges (DEXs). Loopring uses zk-rollups to enable fast and cheap trades on Ethereum. Polygon, on the other hand, is a more general-purpose scaling solution that supports various types of dApps, such as gaming, DeFi, NFTs, and social networks. Polygon also supports other scaling solutions, such as sidechains and optimistic rollups, in addition to zk-rollups.

Polygon vs. Polkadot (DOT)

Polkadot is a blockchain platform that enables different blockchains to communicate and interact with each other. Polkadot uses a relay chain that connects to multiple sub-blockchains called parachains, each with its own functionality and governance. Polygon, on the other hand, is a Layer 2 solution that operates on top of Ethereum and connects to other blockchains through bridges. Polygon also uses a network of sidechains that are compatible with the EVM, while Polkadot uses a custom virtual machine called WebAssembly.

Advantages of Polygon

 Some of the advantages of Polygon are:

1. High compatibility with Ethereum: it offers a scalable and interoperable platform for building and connecting Ethereum-compatible blockchain networks, such as sidechains, rollups, and bridges.
2. Lower transaction fees: It provides a user-friendly and developer-friendly environment that supports the EVM, smart contracts, and various programming languages and tools.
3. High throughput rate: it enables a rich and diverse ecosystem of dApps, such as gaming, DeFi, NFTs, and social networks, that benefit from Polygon’s high speed and low cost.
4. Polygon transaction speed: it fosters a strong and active community of users, developers, validators, and partners that contribute to the growth and innovation of Polygon.

Disadvantages of Polygon

Some of the disadvantages of Polygon are:

1. It relies on the Ethereum main chain to function and secure transactions. This means that any vulnerabilities or attacks on Ethereum could impact the security of Polygon.
2. It faces centralization concerns, as some critics argue that Polygon is not fully decentralized because it is controlled by a relatively small number of entities.
3. It faces competition from other scaling solutions, such as Optimism, Arbitrum, and StarkWare, that also offer fast and cheap transactions on Ethereum.

How Is the Polygon coin Secured?

Polygon uses the Proof-of-Stake method to validate each transaction added to the blockchain. In Polygon’s Proof-of-Stake method, validators stake MATIC on the Ethereum blockchain as a prerequisite to being allowed to validate. This process helps guarantee a blockchain’s decentralized, secure, and public nature.

How To Use Polygon (MATIC)

Polygon is a blockchain platform that hosts the MATIC cryptocurrency. To learn about what does Polygon (MATIC) crypto do and how to use the Polygon blockchain, as well as a few Polygon use cases - keep on reading. First things first, you need to have MATIC, which you can buy on various cryptocurrency exchanges. Once you have MATIC, you can use it for various purposes such as staking, where you can earn rewards by participating in the network’s consensus mechanism. You can also use MATIC to participate in decentralized applications (dApps) built on the Polygon platform.

Polygon uses a combination of Proof-of-Stake (PoS) and Plasma frameworks to create scalable and secure blockchain networks. PoS is a consensus mechanism that relies on validators who stake MATIC tokens to process transactions and earn rewards. Plasma is a technique that allows off-chain transactions to be periodically committed to the Ethereum main chain, reducing congestion and costs. Polygon also supports other scaling solutions, such as zk-rollups and optimistic rollups, which use zero-knowledge proofs and fraud proofs to verify transactions on Layer 2. 

Buying Polygon (MATIC)

Wondering how to get MATIC? If you want to become an owner of the Polygon cryptocurrency- head to SimpleSwap and follow these instructions:

1. For example, you want to swap BTC for MATIC. Select the currency you want to exchange (e.g. BTC) in the first drop-downlist. Then enter the amount you want to swap.
2. Select MATIC in the second drop-down list. You’ll see the estimated amount that you’ll get after the exchange.
3. Click the Exchange button.
4. Enter the Recipient's Address. MATIC will be sent. Be careful and make sure you use the correct address.
5. Create the exchange.
6. You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the BTC to MATIC exchange.

How to Stake Polygon (MATIC)

Staking is a process of locking up MATIC tokens in a smart contract to become a validator or a delegator on the Polygon network. Validators are responsible for running the network and processing transactions, while delegators are users who delegate their stake to validators and share their rewards and risks. Staking allows users to earn passive income from network fees and rewards, as well as participate in the governance of Polygon. 

Mining Polygon (MATIC)  

MATIC is not a Proof-of-Work (PoW) token, therefore you can’t mine it in the traditional sense. However, you can join the Matic network and set up a validator node to collect transaction verification rewards.If you’re interested in earning MATIC, you can also use various platforms designated for doing so. 

Roadmap

Polygon has a roadmap that outlines its vision and goals for the future. Some of the main objectives of the roadmap are:

1. Launching the Polygon SDK, which is a modular and flexible software development kit that allows developers to create custom blockchain networks with different features and specifications.
2. Launching the Polygon Avail, which is a data availability layer that provides scalable and secure data storage for rollups and other scaling solutions.
3. Launching the Polygon Hermes, which is a zero-gas platform that enables instant and free transactions for dApps and users.
4. Launching the Polygon Nightfall, which is a privacy-preserving protocol that leverages zero-knowledge proofs to enable confidential transactions and smart contracts.
5. Launching the Polygon ZK-rollups, which are a type of rollup that uses zero-knowledge proofs to verify transactions on Layer 2, reducing the load on the Ethereum main chain.
6. Launching the Polygon Optimistic rollups, which are another type of rollup that uses fraud proofs to verify transactions on Layer 2, allowing for faster finality and lower costs.
7. Launching the Polygon Plasma, which is a scaling solution that uses Plasma chains to enable high-throughput and low-latency transactions on Layer 2.
8. Launching the Polygon Bridges, which are interoperability protocols that connect Polygon to other blockchains, such as Bitcoin, Binance Smart Chain, and Avalanche.
9. Launching the Polygon Enterprise, which is a suite of products and services that cater to the needs of enterprise clients and institutions, such as identity, compliance, and security solutions.

Future of Polygon

The future of Polygon (MATIC) looks promising. As a Layer 2 scaling solution for Ethereum, Polygon has made significant advancements in enhancing the speed and reducing the cost of transactions on the Ethereum network. The platform’s focus on interoperability, scalability, and sustainability positions it well for continued growth and adoption.

Moreover, the crypto market’s sentiment towards Polygon is generally positive, with a value of 10 billion of MATIC coin total supply, this reflects the platform’s robust technology and potential for future development. The launch of Polygon Studios, focusing on blockchain gaming and NFTs, further showcases Polygon’s commitment to innovation and expansion.

The Bottom Line

While the crypto market is inherently volatile and unpredictable, Polygon’s strong fundamentals and positive market sentiment suggest a bright future for this platform. As always, potential investors should conduct thorough research and consider their risk tolerance when investing in cryptocurrencies.

FAQ

Here are some frequently asked question about Polygon.

Is Polygon (MATIC) an ERC20 token?

Yes, MATIC is an ERC20 token on the Ethereum network. However, it also exists on the Polygon network as a native token.

Are MATIC and Polygon the same thing?

No, they are not the same. Polygon is a framework for building and connecting Ethereum-compatible blockchain networks, while MATIC is its native token used to power the ecosystem

Can you mine a polygon (MATIC) coin?

No, MATIC is not a Proof-of-Work (PoW) token, therefore you can’t mine it in the traditional sense. However, you can join the Matic network and set up a validator node to collect transaction verification rewards.

What is polygon (MATIC) crypto used for?

MATIC is the native cryptocurrency of the Polygon network and is used for fees, staking, and governance. This means that MATIC holders get to vote on changes to Polygon.

Does Polygon Matic have gas fees?

Yes, Polygon does have gas fees. Gas refers to the fee required to successfully conduct a transaction on the Polygon PoS Chain blockchain. Gas fees are paid in MATIC and denominated in Gwei.