Updated on January 26, 2023 03:06 PM
Polygon is an ERC-20 token since it is a layer 2 blockchain network built on top of Ethereum. Polygon aspires to be the Internet of Blockchains for Ethereum.
Polygon is a blockchain scalability platform based in India. The Polygon platform links Ethereum-based projects and runs on the Ethereum blockchain. It solves Ethereum's problems with excessive costs, a subpar user experience, and a meagre number of transactions per second.
Polygon was founded in 2017 and is a pretty well-known cryptocurrency that frequently appears in the top 15 by market capitalization. More than 7,000 decentralised apps (dApps), or programmes that operate without middlemen, are supported by MATIC. Four engineers, Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, started the company in the beginning in Mumbai, Maharashtra.
Originally known as MATIC, a very successful scaling solution for the Ethereum network that had previously possessed a modified version of Plasma and PoS-based alternative chains, was the forerunner to Polygon. The foundational resource of the Polygon system is the MATIC Polygon token. It is used to store tokens that safeguard the Polygon network in addition to being used for exchange payments. Since being rebranded, the Polygon MATIC token's price has increased dramatically along with its usage. Investors may purchase MATIC tokens on exchanges, and they are used to control, secure, and pay transaction fees for the Polygon network.
Every block in Polygon can lead to a consensus thanks to a redesigned proof-of-stake consensus method. With the exception of the fact that exchanges are grouped and resolved via the Ethereum mainchain, its structure, token, client nodes, local dapps, validator nodes, etc. are comparable to those of other networks. For interoperable, Ethereum-viable blockchain networks, Polygon has fortunately established a layer-2 network.
Developers may quickly distribute pre-set blockchain networks thanks to Polygon's modular framework for building bespoke networks. Additionally, Polygon makes it simple for any blockchain to work in unhindered collaboration with another blockchain. Consider the MATIC sidechain as a vital part of the huge Ethereum ecosystem that gives customers common project implementation and a positive working environment.
Almost all significant centralised and decentralised cryptocurrency exchanges, including Binance Exchange, Kraken, KuCoin, Uniswap, Crypto.com Exchange, Coinbase, Huobi Global, and Bittrex, allow the purchase of Polygon (MATIC). Any exchange, essentially the ones listed above, will let you open an account, which you can subsequently fund using local currency. A digital wallet is also required; this might be your own or one that is maintained by the bitcoin exchange. Except for the trading value you pay for the real MATIC token, there is no charge as such. However, there is a 230 MATIC withdrawal fee.
In order to grow the Ethereum network, Polygon employs its own Proof-of-Stake (PoS) blockchain and Commit Chain connection. Polygon also aims to address any inefficiencies that can prevent the general use of blockchain technology. The goal of Polygon is to make Ethereum a better blockchain development platform. By offering extra capabilities in the areas of security, blockchain sovereignty, user and developer experience, and modularity, Polygon enhances Ethereum.
Ethereum, on the other hand, formerly employed the proof-of-work consensus algorithm. Following the merger of the execution and consensus layers, a Chinese miner forked the Ethereum blockchain to produce PoW Ethereum, also known as ETHW. On September 15, 2022, the Ethereum blockchain switched to a proof-of-stake (PoS) consensus method from a proof-of-work (PoW) one.
In 2021, Polygon Studios, a division of Polygon that specialises in blockchain games and NFTs, was established. If successful, Polygon Studios might position Polygon as a top technology supplier for decentralised gaming and NFTs.
With a rise of more than 7000%, the MATIC token has outperformed the gain seen at the beginning of the year by popular cryptocurrencies like Bitcoin and Ethereum. At the beginning of May, MATIC had a market worth of more over 88 billion ZAR, and there were more than 5 billion coins in existence. These numbers demonstrate that MATIC is headed toward becoming one of the most popular coins in the field of decentralised finance (DeFi).
Polygon has developed into a protocol and framework that enables users to create and connect Ethereum-compatible blockchain networks, offering it a number of benefits and enabling interoperability, development, and the quick, simple deployment of specialised networks.
By examining Polygon MATIC's capabilities and workings, it can be concluded that this platform has been quite successful in addressing the scalability problems with blockchains. Additionally, a variety of blockchain developers may take advantage of the tools and capabilities supplied by the polygon platform, which gives developers access to customization possibilities, to construct their own decentralised network.