Polygon MATIC is the choice of brands and industry leaders. Polygon has entered into major partnerships. But what is Polygon MATIC?
Known as Matic Network initially, Polygon refers to a framework to create interconnected blockchain networks. It strives to address the prominent limitations of Ethereum by deploying a novel sidechain solution.
Unlike its former Matic Network, Polygon has been developed with the aim of launching interoperable blockchains.
How to use the Polygon network?
Almost anything that’s possible on the Ethereum network is possible on Polygon and that too at a comparatively low fee.
Crypto must be sent to a compatible crypto wallet to use the Polygon network. The next step is bridging some of the crypto to the Polygon network.
For transactions, bridging some MATIC is also needed. Thanks to meager fees and quick transactions, the Polygon network is one of the best ways to enjoy a real-world experience while trying DeFi protocols.
Polygon’s Proof-of-Stake model
The PoS consensus mechanism rewards token owners for their contribution to keeping the network functioning and for confirming transactions.
Staking can be done with only 1 MATIC, and interest can be earned. However, the majority of people delegate their staking to a validator instead of collecting sufficient MATIC and operating the validator on their own.
As their commission, validators charge a certain percentage of the staked rewards.
Proof-of-stake has a risky side too. It is possible for people to lose a part of their stake or get completely liquidated.
How is Polygon Ethereum’s “Internet of Blockchains?”
The key motive behind designing Polygon was to promote a future where different blockchains run as networks that fit in an extensive, interconnected landscape.
The long-term goal is to enable users to interact with decentralized goods and services without navigating through intermediaries in an open and borderless world.
To achieve the goal, Polygon deploys certain technologies, such as:
POS Chain
The prominent chain of Polygon is the MATIC POS Chain, an Ethereum sidechain, which adds a PoS security layer to blockchains that are released on Polygon.
Plasma Chains
Plasma is a scaling technology used by Polygon to transfer assets between the root chain and child chains through Plasma bridges.
Polygon SDK
Polygon SDK refers to a flexible and extensible framework used to create networks that are ETH-compatible. Keeping the core layers of Polygon work at their best is the reason behind designing it.
ZK-rollups
It is a scaling solution that puts together several off-chain transactions into just a single on-chain transaction. ZK-rollups ensure verification via zero-knowledge proof with every single roll-up.
Optimistic rollups
It’s a solution that functions on top of Ethereum in order to ease near-instant transactions via fraud proofs.
Polygon Chains
There are two types of Ethereum-compatible blockchains supported by Polygon MATIC. These are:
Secured Chains
Instead of having their own validator pool, Secured Chains utilizes security as a service. Though they have increased security, they lack flexibility and decentralization.
Stand-alone Chains
These chains are independent Ethereum-compatible networks and handle their own security, which includes their own validators.
What is MATIC?
It is the native currency of Polygon and is an ERC-20 token. MATIC is used to both administer and safeguard the Polygon network, as well as pay the transaction fees of the network.
MATIC’s supply is limited since there will never be more than 10 billion coins in circulation.
How to purchase MATIC?
Polygon MATIC can be easily bought on crypto exchanges like Coinbase in a way similar to buying any other cryptocurrency.
A verified account is a must to make the purchase. Once the account is created, Polygon MATIC can be bought through a bank transfer, debit/credit card, wire, or even in fiat currencies.
Certain crypto exchanges provide staking services too, which means one can earn interest on their Polygon MATIC while the tokens are kept at the exchange.
Not only cryptocurrency exchanges but decentralized exchanges like Uniswap also allow buying MATIC.
A payment processor can be used too, based on the crypto wallet, for the direct purchase of MATIC. It might also be required to buy some other token and interchange it for MATIC by paying a certain fee.
To get MATIC on the Polygon Mainnet, the Polygon Bridge can be used to deposit as well as withdraw MATIC after linking an eligible wallet.
What is a Polygon wallet?
Users can both send and receive crypto assets as well as stake MATIC on Polygon’s network and earn interest, thanks to the Polygon wallet. It also offers access to the Polygon bridge for depositing and withdrawing between multiple blockchains.
Users are given a non-custodial web wallet by the Polygon project so that they can handle their tokens on the Polygon network. With non-custodial wallets, users have overall control of the private keys.
It’s important to know that Polygon MATIC can be held by any wallet that’s ERC-20-compatible.
What makes Polygon special?
It won’t be wrong to say that Polygon MATIC is among the latest efforts related to the interoperability and scaling of blockchain. Moreover, it is compatible with the Ethereum Virtual Machine; hence, it is great for those who create apps on Ethereum and program in Solidity.
The shared security model of Polygon is optional, which is why sovereignty platforms need not compromise on freedom or flexibility for extra security when in case it’s not required.
Last but not the least, Polygon MATIC is quite flexible to integrate any scalability solution.
The goods and bads about Polygon
When discussing Polygon and related aspects, knowing about its advantages and disadvantages is important. On that note, let’s check the bright side first.
- Over 65,000 transactions are managed by Polygon per second.
- Despite operating on Ethereum, Polygon’s transaction fee is low.
- Its validation system makes it more secure as compared to other networks.
- Polygon has a joint system that has the Heimdall architecture and PoS that enhances its scalability and power.
- Owing to Polygon’s customizable tech stack, users get experiences similar to the Ethereum blockchain.
- Renowned investors and industry leaders support Polygon. For instance, in 2021, Mark Cuban invested a huge amount in Polygon.
Let’s see the dark side now.
- Polygon depends on the Ethereum blockchain for transactions, which means the network will have consequences if Ethereum faces any disruption.
- MATIC, the Polygon token, is limited to be used only on the network and can’t be used for cryptocurrency-based transactions.
- Other blockchain technologies give serious competition to Polygon, which might harm its market potential.
- Development in Ethereum 2.0 could make Polygon useless.
Brands inclination towards Polygon
Polygon has been successful in partnering with some of the world’s most known companies and brands.
For instance, Meta joined Polygon to allow Instagram users to mint NFTs.
Polygon’s collaboration with Warren Buffett-backed Nubank was definitely a positive thing that was applauded by industry experts.
Starbucks partnered with Polygon for the development of an NFT-based loyalty rewards program.
Magic Eden joined Polygon for the development of blockchain gaming.
Disney chose Polygon to be a part of its Disney Accelerator program.
Nike joined Polygon to mint digital apparel non-fungible tokens.
Reddit entered into a partnership with Polygon to mint exclusive NFT avatars.
Recently, Mastercard collaborated with Polygon for the Web3 Musical Artist Accelerator Program.
Polygon in news
Polygon raised $450,000,000 from Republic Capital, SoftBank, Tiger, Sequoia Capital India, and Galaxy.
In January 2022, Polygon had over 7,000 decentralized apps on the network.
Since its release in October 2022, Polygon’s zkEVM has processed over 22,000 transactions.
Polygon’s daily transactions surpassed the daily transactions of BNB.
Final Words
Polygon has the potential to perform well since it has been successful in terms of fixing the scalability-related concerns of the blockchain. Also, blockchain developers can create personal decentralized networks owing to the tools and features of Polygon that allow developers to access customization options.
Talking exclusively about investment, 2023 looks good; however, short-term traders might suffer a risk. For long-term traders, Polygon is valuable in terms of opportunities to earn major profits.
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