themorningcrypto

    Polygon

    Simar Marwaha
    Simar Marwaha
    Published on October 26, 2022 7:32 AM

    Updated on January 26, 2023 3:06 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

    What is Polygon?

    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.

    How does Polygon work?

    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.

    Scaling Solutions

    1. Polygon PoS: Polygon Proof of Stake (POS) is the most tested scaling approach in web3, and the best means to start a web3 project that's ready for a worldwide audience. It has over 1.3 billion transactions recorded, 130 million unique wallets, and over 2.7 million monthly active users.
    2. Polygon Supernets: By offering premium support to help you create your own blockchain without the headache of managing blockchain infrastructure, Polygon Supernets reduces the complexity of blockchain creation.
    3. Polygon Avail: Availability of Data is solved with  Polygon Avail, it is a modular blockchain that maintains transaction data for other blockchains so that they are not need to do so.
    4. Polygon Zero: In order to create a ZK L2 that is more scalable and decentralised, Polygon Zero makes use of Plonky2's speed. It provides consumers with access to better throughput and reduced prices by providing both rollup and validium modes.
    5. Polygon Miden: A STARK-based, Zero-Knowledge rollup, Polygon Miden supports any smart contract. It is employed for everyday needs and zk-rollup.
    6. Polygon zkEVM: In order to provide comprehensive EVM opcode equivalency for a seamless user experience and the security of Ethereum, Polygon zkEVM is the first zk-Rollup with source code accessible.
    7. Polygon Nightfall: The hybrid Optimistic-ZK rollup developed by Polygon Nightfall makes it possible for businesses on Web3 to conduct private, effective, decentralised commercial transactions.

    Polygon: Pros & Cons

    Pros

    1. Minimal transaction costs.
    2. High-speed transactions per second.
    3. Scalable and providing staking incentives.
    4. Terrific for decentralised financial apps.

    Cons

    1. Market Cap/Total Value Locked Ratio is high.
    2. There will be competition from alternative scaling options.
    3. MATIC Token has little potential.

    How to buy a MATIC Token?

    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.

    Polygon versus Ethereum

    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.

    Prospects for Polygon

    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.

    Also read: Polygon fights corruption in India's police complaint system.