Polygon Network is an Ethereum blockchain that contains features of ERC-20 like liquidity, security, and interoperability. Its native token (MATIC) is among the fastest rising cryptocurrencies this year. The network was designed to provide scalability and adaptability of alt chains using the features.
This article will provide an in-depth review of everything about the polygon blockchain protocol.
What Is Polygon?
Polygon is a well-regulated platform with a user-friendly interface built on the Ethereum protocol . It was developed to care for the scaling and infrastructural development of the Ethereum blockchain network.
It’s no secret that Ethereum has many challenges such as poor user experience, low transactions per second (TPS) and high transaction fees. Polygon (MATIC) was developed to create a high-performance blockchain that can make a difference.
Originally, Polygon Network started as MATIC Network before changing to Polygon. Polygon is also an EMV-compatible network that has the compatibility to host other cryptocurrencies like; Dapp (Decentralized Application), DAOs (Decentralized Autonomous Organizations), DeFi(Decentralized Finance), and NFTs(Non-Fungible Tokens) on its network.
What’s Polygon’s History?
Polygon (MATIC), which was known as the Matic network in its early days, was built in 2017 by Jaynti Kanani, Mihailo Bjelic, Anurag Arjun, and Sandeep Nailwal. In February 2021, it was rebranded to Polygon.
In 2017, Polygon Network was created to solve the limitations surrounding Ethereum. These limitations were suppressed after many years of operation with the plasma sidechain and proof of stake (PoS) chain scaling solution. Polygon is now making progress with some projects like Marker (MKR).
Currently, there are 15 cryptocurrencies on the Polygon Network. The founders are working towards making Polygon one of the top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Who Founded Polygon?
Jaynti Kanani, the current CEO of Polygon, is the original owner of this idea. In 2017, when Kanani was working at Housing.com as a data scientist, he noticed a scalability issue on the Ethereum network. Due to Crypto Kitties, a popular NFT at that time, there was large congestion on Ethereum which affected its scalability and speed.
When the idea came, he reached out to Sandeep Nailwal who was working in a crypto company group as a blockchain developer. Then he also reached out to, Anurag Arjun whom he had relations with because of relative work circles.
These three men started their very own blockchain, formerly known as MATIC but now as Polygon, in Mumbai, India.
How Does Polygon Work?
The Polygon System uses proof-of-stake checkpoints which speed up its transaction process. This has resulted in the MATIC sidechain being able to execute up to 16 transactions per block. There is a possibility that this network will allow millions of transactions on the blockchain.
The network can be referred to as a Layer 2 scaling solution with a unique transaction fulfillment technology that allows up to $65,536 transactions on each block.
Is Polygon Decentralized?
In August 2021, Polygon announced that it will build a decentralized autonomous organization (DAO) for the decentralized finance (DeFi) sector. This plan is aimed at attracting more users. It is predicted that DAO will attract 100 million users and also allow this community to be decision-makers in its ongoing DeFi development.
To execute the project, the Ethereum scaling protocol announced that it will use some of the 100 million accumulated from the #DeFiforAll Fund for the process.
The formation of DAO is important because it is “the next logical step” to allow collaboration between blockchain-based systems. Some projects like SushiSwap, Curve, and Aave are already using Polygon as a scaling solution in their system.
What Is Polygon Architecture?
Polygon is built on four main abstract and composable layers of scaling architecture. It also enables features where developers can randomly select the best scaling application that works for them. Polygon has compatibility with EVM and EWASM smart contracts.
The layers are as follows:
- Ethereum Layer- a set of Ethereum smart contracts that control transaction finality, staking, and Ethereum-polygon chain interactions.
- Security Layer- a set of validators that check the validity of any Polygon chain for a fee. It is in charge of “Validator Management” and “Polygon chains validation”.
- Polygon networks Layer- a set of stand-alone Polygon blockchains. Each blockchain is completely in charge of its consensus mechanism, transaction validation, etc.
- Execution Layer- responsible for and in charge of the different processes involved in the execution and interpretation of smart contracts.
What Technology Is Behind Polygon?
Developers can create two types of Ethereum-compatible blockchain on a Polygon framework and a protocol. These compatible frameworks include:
Secured Chains– This layer 2 scaling blockchain implements the following technologies including zk Rollups, Optimistic Rollups, Validum, ChainsMatic, and Plasma. It relies on security provided by Ethereum or a pool of Polygon’s validators.
Stand-alone chains– They are sidechain blockchains. Not all stand-alone blockchains need the ‘Ethereum and Security layers” because they are EVM compatible and have their consensus mechanisms. Although, they do still work with Ethereum’s network when necessary.
What Is a Polygon Token?
The native token of Polygon is known as MATIC and it is an ERC-20 token based on the Ethereum blockchain. This token is used for payment services on Polygon. In addition, it is the recognized settlement currency within the Polygon marketplace.
How Many Polygons Are in Circulation?
On CoinMarketCap, MATIC is ranked #19 with a market cap of over $12 billion and a circulating supply of over 6 billion MATIC tokens. Its maximum supply is 10 billion coins.
The token in circulation is distributed into the following grouping: team tokens, advisor tokens, network Operation tokens, foundation tokens, and ecosystem tokens.
The token can be bought on Binance, Coinbase Pro, FTX, KuCoin and Huobi Global.
What Token Can You Trade on Polygon?
Cryptocurrency users can go on exchange platforms like QuickSwap, ParaSwap, SimpleSwap and many others that support the exchange of Polygon to other tokens with their respective MATIC crypto rating determined by the platform.
MATIC can be traded with AAVE, BEL, CFI, CTSI, DINO, EMON, ETH and many others, built to combine the best of Ethereum with blockchains to solve the pain points such as slow speeds, high gas fees without compromising security.
What Makes Polygon Unique?
Polygon has a speed of up to 65,000 transactions per second on a single side chain by using a customized version of Plasma. In addition to the speed, it has a block confirmation time of fewer than two seconds. Polygon network’s framework also allows developers to create decentralized applications on a single foundational blockchain.
It has reduced the complexity surrounding the scalability and instant blockchain transactions that cause restrictions to Ethereum.
Is Polygon A Good Investment?
Since it is a project that is built on the ERC-20 platform, every cryptocurrency liquidity has risks attached to them. The growth and development of cryptocurrency have been impressive.
Is Polygon Secure?
The network is a layer 2 solution that uses the proof of stake validators for asset security, making staking a major part of the polygon ecosystem. The network allows validators to stake their MATIC token as collateral to become part of the network’s PoS consensus mechanism and will receive the MATIC tokens in return.
Members who don’t want to become validators can assign their tokens to other validators but can still partake in the staking process and earn rewards.
In essence, it is safe to say that the network uses the PoS model to secure the network and achieve consensus.
In addition to using the PoS model, the network also uses block producers at the block producer layer to attain a high degree of decentralization. These block producers give finality to the main chains by utilizing checkpoint’s and fraud proof mechanisms.
How to Buy and Sell Polygon on Binance
STEP ONE- Log in on the Binance trading app or create an account if you do not have an account.
STEP TWO- Click on “Buy Crypto” at the top of the page.
Then, you can choose whichever means you want to use to buy your MATIC token. However, if you already have BTC or USDT and wish to trade it for the MATIC token, click on “Trade”, then choose either “Convert” or “Classic” and buy your MATIC coin.
Pros and Cons of Polygon
Pros Of Polygon
There are several upsides to Polygon. The prominent advantages include security, openness, and power. In addition, it has the full effects of Ethereum’s network effects.
Cons of Polygon
Polygon has its downsides, the major downside being competition; there are currently a lot of other cryptocurrencies aiming to provide scaling solutions.
Polygon (MATIC) will provide you with another option apart from Ethereum that will provide lower transaction costs and faster speed.
Although Polygon is in its early stages, it has grown and gained a lot of popularity. It hosts over 80 dApps and provides security to 55 million users’ funds.