Polygon, which used to be called Matic network, is a popular cryptocurrency that lots of crypto fans know about. But did you know it’s not just any old cryptocurrency? It actually helps out another digital money called Ethereum.
Now, why does that matter? Well, it means this cryptocurrency is ready for the future. The person who made Ethereum, Vitalik Buterin, says that after some big changes to Ethereum, they’ll use solutions like Polygon to make things better.
Polygon isn’t just about making Ethereum work better. It also lets different blockchains talk to each other. It’s like building roads between different parts of the internet. The team behind Polygon calls it “Ethereum’s Internet of Blockchains.”
Who Сreated Polygon?
Back in October 2017, Polygon was born thanks to India’s first crypto billionaires: Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. At that time, it was called the “Matic network.”
From the start, Polygon was meant to be like a helper for the Ethereum network. It wanted to fix some big problems Ethereum was facing, like crazy high fees and not being able to handle lots of transactions. But here’s the kicker: Polygon isn’t just hanging onto Ethereum’s coat-tails. It also has its own proof-of-stake blockchain.
What is Polygon Crypto? Polygon’s Rebranding
In 2021, the team behind Polygon decided it was time for a rebrand. They wanted the project to show off its ability to help lots of different blockchains grow. So, they changed the name to Polygon, hinting at a network with lots of chains.
With this new name came some cool new stuff. Polygon wasn’t just about scaling anymore; it could handle more than plasma chains.
This fresh look did wonders for Polygon. People started paying more attention to it and its token, MATIC. The new name made it clear what Polygon was all about, and it got folks excited about this cryptocurrency.
What is the MATIC Token?
The token that belongs to the Polygon network is called MATIC. You use MATIC to pay for things like transaction fees. Plus, if you stake your MATIC, you can earn rewards for keeping the network safe.
For developers who work on Polygon, MATIC comes in handy too. It lets them do things like withdraw without paying fees and make transactions super quick.
How Does Polygon Work?
Ethereum faces some serious issues that hold it back, like slow transactions and crazy high fees. But here’s where Polygon steps in: it lets you do the same Ethereum transactions but way faster, cheaper, and smoother.
How does it pull this off? Well, Polygon uses a tweaked proof-of-stake system to keep its network safe. This means they can agree on transactions for every single block super quickly.
Picture Polygon as a bunch of side streets branching off from the main Ethereum highway. These side streets are the sidechains, and they handle transactions off the main road. This setup helps Ethereum handle way more transactions without getting all clogged up.
Let’s take a look at some of the principal characteristics of the Polygon network.
Layer 2 Solution
Polygon plays a vital role as a layer-2 solution for Ethereum, helping make it more scalable and efficient. It does this by handling transactions off the main Ethereum chain using sidechains connected to it. These off-chain transactions are later settled on the main chain.
Developers who work with Polygon can use MATIC tokens to cover transaction fees, which are generally lower than on Ethereum. Plus, Polygon has added features to cut down on gas costs, like letting you withdraw without paying gas and speeding up transactions.
As Ethereum grows and deals with scalability issues, layer-2 solutions like Polygon will become even more important. This means more folks will likely hear about Polygon and its smart tech.
Proof of Stake (PoS)
Because Polygon has a proof-of-stake (PoS) blockchain, it can do cool stuff like using smart contracts. These contracts are what make decentralized apps (dApps) possible. Plus, if you’ve got MATIC tokens, you can stake them to earn rewards, which is a big draw for both developers and investors.
With PoS, Polygon’s team could add some neat security features, like fraud proofs, which help keep the network safe. These features make Polygon an attractive option for folks looking to build or invest in blockchain projects.
Polygon Bridge
The “Polygon Bridge” is how Polygon connects with the Ethereum network. It’s the link that allows you to move NFTs and ERC-20 tokens from the Polygon blockchain to the Ethereum one.
There are two main bridges in Polygon: the Proof-of-Stake and the Plasma Bridge. They both do the same job—moving digital stuff from one blockchain to another—but they use different security methods.
The Proof-of-Stake bridge relies on the PoS system for security. It’s the one most folks use for transferring tokens and ETH between the two chains, especially investors and dApp users. On the other hand, the Plasma bridge is favored by developers because it’s generally more secure. However, working with the plasma chains it uses can be a bit trickier and less user-friendly.
Polygon Protocol
The Polygon network runs on something called the Polygon Protocol. It’s made up of smart contracts that live on the Ethereum blockchain. This protocol is packed with features to make life easier for users, like:
1. Gas-free withdrawals: You can take your tokens out of the Polygon network without worrying about gas fees.
2. Fast transactions: Sending stuff on Polygon is super quick. Your transactions get confirmed in just a few seconds.
3. Low transaction fees: You only pay a tiny fee when you do something on the network.
4. Works with lots of programming languages: Developers can use different languages to build and launch dApps on Polygon, which makes their job way easier.
How Does Polygon Differ from Other Blockchains?
Polygon has a bunch of standout features that set it apart from other cryptocurrencies and layer 2 solutions. We’ve talked about some already—its tight connection with Ethereum, low fees, speedy transactions, and support for different programming languages. But there’s more to it than just that.
One of the big things that makes Polygon special is its full suite of scaling solutions. Besides the plasma chains and sidechains we’ve already mentioned, it also offers zk (zero-knowledge) and optimistic rollups. This means developers can choose the solution that works best for their project, making the Polygon network super flexible and adaptable.
Being an EVM (Ethereum Virtual Machine) sidechain isn’t what makes Polygon unique on its own. But here’s the twist: Polygon goes the extra mile by committing checkpoints to Ethereum. This might sound techy, but it’s a big deal because it seriously beefs up the security of the entire network. And that’s what sets Polygon apart from other projects that are also EVM-compatible.
Polygon vs. Ethereum
The relationship between Polygon and Ethereum is both essential and distinct. While Polygon acts as a way to scale up Ethereum, making it work more efficiently, Ethereum acts as the backbone, ensuring security and trust for networks built on it. Polygon was created to tackle the scalability issues that have been holding back Ethereum for a while—things like high fees and slow block production.
Thanks to Polygon’s MATIC token, users can enjoy cheaper and faster transactions, which helps ease congestion and load problems on Ethereum. Polygon runs its own blockchain alongside Ethereum, using a tweaked Proof-of-Stake system to quickly and securely validate transactions on its network. Meanwhile, Ethereum keeps evolving, serving as the core layer for settling transactions, maintaining its strength and decentralization.
With its innovative approach and compatibility with Ethereum, Polygon has become a major player in blockchain tech. It lets network users carry out transactions more efficiently and at a lower cost, all while benefiting from Ethereum’s security and reliability.
What Is Polygon 2.0?
Polygon 2.0 marks a big step forward for the Polygon ecosystem, aiming to make using it feel like you’re on one seamless blockchain network. It’s all about creating a network of L2 chains powered by ZK technology—short for “zero-knowledge proofs.” This tech lets one party prove something to another without giving away any extra info, which is key for privacy and scalability in the blockchain.
The goal of Polygon 2.0 is to tackle some of the limitations of blockchain by bringing all Polygon protocols together in one unified setup, supercharged with ZK tech. This isn’t just a small update; it’s a major revamp of the system, covering everything from protocol design to how tokens work and how decisions are made.
This upgrade has been in the works for over a year, with devs, researchers, and communities from Polygon and Ethereum teaming up. Community discussions play a big role in shaping Polygon 2.0, and you can join in on the forum to see how it’s all coming together. It’s all about being open and working together to make progress.
Which DApps Use Polygon?
Polygon boasts support for over 7,000 dApps, and new ones keep popping up regularly. Here are some of the most popular ones:
1. Sunflower Land: A game where players can explore and interact with a virtual world.
2. QuickSwap: An exchange where users can swap different cryptocurrencies.
3. Arc8: Another game offering immersive experiences for players.
4. 1inch Network: A DeFi project providing decentralized exchange and liquidity solutions.
5. Uniswap V3: A decentralized exchange allowing users to trade various tokens.
Interestingly, while games are the most common type of dApp in terms of the number of users, they don’t generate as much profit or trading volume. On the other hand, exchanges and DeFi projects, although less popular, handle a significant amount of crypto transactions through the network’s smart contracts.
The Future of Polygon
The future of MATIC looks promising, with Polygon aiming to become a top scalability solution not just for current issues but also for future needs, like integrating with emerging tech such as the Internet of Things. Its market capitalization and role as Polygon’s native cryptocurrency show its wide adoption and potential for even more growth.
As blockchain projects keep growing, Polygon’s scaling solutions, including Polygon 2.0, are set to play a key role in transitioning to a world centered around blockchain. Beyond just scaling up, the focus is on making sure these solutions are sustainable and can handle the expected surge in network transactions as blockchain becomes more important in various sectors.
How to Buy Polygon (MATIC)
To buy Polygon’s MATIC token, start by getting a crypto wallet that can handle ERC-20 tokens. Then, find a crypto exchange that offers MATIC. You’ll typically need to sign up on the exchange, deposit funds (or some other cryptocurrency like Ethereum), and then trade it for MATIC tokens. The details might differ depending on the exchange, so it’s wise to check their reliability and security first.
Once you’ve bought MATIC, you can store it in your private wallet or keep it on the exchange if you plan to trade it.
FAQ
Is Polygon a good investment?
Polygon has a lot going for it and seems to be relatively future-proof. Ultimately, however, what defines it as a good investment or not is how it fits your portfolio.
What is the Polygon crypto used for?
Polygon is a layer 2 solution that increases scalability and reduces fees on the Ethereum network. It can also be used to deploy dApps and stake MATIC tokens.
Does the Polygon crypto have potential?
The crypto market is extremely unpredictable, but Polygon has a lot of things that can help a crypto asset book a one-way ticket to the moon: a big market cap, innovative functionality, prospects, and a great community.
Is Polygon the same as Ethereum?
How many Polygon coins are there?
Yes, the MATIC token operates with a fixed supply, similar to Bitcoin. This means there’s a limited number of MATIC tokens that can ever be created, adding a scarcity element to its value. This fixed supply is a key aspect of Polygon’s tokenomics, helping to maintain the value layer of the network.
To find out the exact number of MATIC tokens in circulation and the total supply, you can usually check various market data providers or refer to Polygon’s own documentation and analytics services. These sources offer transparency and insights into the token’s supply dynamics, which can be important considerations for investors and users of the network.
Disclaimer: This article does not provide financial or investment advice. The information shared here represents the author's opinion and should not be taken as trading or investment recommendations. We cannot guarantee the completeness, reliability, or accuracy of this information. Given the high volatility of the cryptocurrency market and its occasional arbitrary movements, investors, traders, and crypto users need to conduct thorough research, consider various viewpoints, and understand local regulations before making any investment decisions.
