themorningcrypto

    What is Polygon(MATIC)? And How Does Polygon Crypto Work?

    Simar Marwaha
    Simar Marwaha
    Published on January 16, 2023 7:09 AM

    Updated on January 16, 2023 7:54 AM

    What is Polygon(MATIC)? Explained Polygon Matic, how to buy Matic, and Polygon wallet. uses of Matic, future of polygon crypto, advantages and disadvantages of Polygon.
    What is Polygon(MATIC)? And How Does Polygon Crypto Work?
    Source: Unsplash

    Polygon, formerly known as the MATIC network, is an interchain scalability solution that provides an architecture for developing blockchain networks that may communicate with one another. It aims to combine Ethereum's security, liquidity, and interoperability with the flexibility and scalability of other chains. In the future, Polygon is excited to add two more roll-ups to its platform. The other will run on top of the Ethereum network to speed up transactions, while the first will combine several off-chain trades into a single trade.

    The blockchain that is still most often used worldwide is Ethereum (ETH). After its launch in 2013, this open-source, decentralized blockchain immediately became widely used. It provides a POS (Proof-of-Stake) platform that uses smart contracts. The rapid acceptance of Ethereum has, however, resulted in excessive costs, with exchange fees sometimes costing more than the transferred amount. This is due to Ethereum's large number of customers, which noticeably reduces the scalability of exchanges.

    Polygon MATIC is utilized in these situations to address the problems. Numerous individuals make up the Polygon system, including block designers, programmers, users, and stakeholders. The MATIC Sidechain is used by Polygon clients to run and interact with many Ethereum-based decentralized applications. It should be mentioned that MATIC is significantly more affordable and fast than competing networks.

    To provide their customers with a top-notch user experience, developers are expected to build their own sidechains or grow their apps using the Polygon SDK stack and network. Similar to Ethereum's PoW miners, Polygon's stakeholders run smoothly. Stakeholders must lock the MATIC tokens in order to authorize and validate exchanges on the MATIC Sidechain.

    In order to control the process of block creation on the sidechain, they may also choose qualified blockmakers by using the voting power of their locked tokens. The blocks are then created by block makers, who also settle all network transactions. A crucial number of MATIC tokens must be locked by stakeholders in order for them to be chosen as block makers.

    The number of block makers is often maintained reasonably modest since having a few producers of block agreements tends to deliver faster throughput and much speedier exchange settlements. For instance, the Matic Sidechain generates and settles new blocks in only one second, compared to the Ethereum mainchain's 20-second average.

    What Is Polygon MATIC?

    MATIC is the native cryptocurrency of Polygon. This coin was produced on the Ethereum network and is an ERC-20 token. This coin is employed to control, protect, and cover the transaction costs of the Polygon network.

    The quantity of MATIC is finite, with only roughly $8.96 billion in circulation, in contrast to certain other cryptocurrencies that have a limitless supply. More than 10 billion coins will never be in circulation.

    As far as we are aware, the MATIC token has a covered supply of 10 billion tokens, of which about 5 billion are now in circulation. The MATIC cryptocurrency is available on the majority of well-known centralized and decentralized exchanges, including some well-known brands like Binance, 1inch Exchange, and Coinbase Pro.

    Together, the crypto community is making it easier to buy Polygon (MATIC) tokens by enabling both fiat and crypto payment methods. Polygon MATIC market has an absolute market valuation of $1.8 billion as of this writing. The value of a polygon MATIC token is now at $0.80.

    Meet the Polygon Development Team

    Four software experts with extensive experience in software development founded Polygon:

    1. Jaynti Kanani is the company's co-founder, CEO, and senior software engineer.

    2. Sandeep Nailwal is the co-founder and CEO of the company.

    3. Anurag Arjun is the company's co-founder and Chief Product Officer.

    4. Mihailo Bjelic is the company's co-founder and software engineer.

    How to Buy Polygon MATIC?

    The Polygon cryptocurrency project is just as simple to invest in as Bitcoin or Ethereum. Finding a crypto exchange that allows you to buy the MATIC token is the simplest option. Users can also decide to stake MATIC and get yearly benefits.

    Like many other well-known cryptocurrencies, MATIC may be purchased on cryptocurrency exchanges like Coinbase or Gemini.

    You must register and authenticate your identity if you don't already have an account.

    You could then be able to purchase MATIC after opening an account using a bank transfer, wire transfer, debit card, or credit card. MATIC may also be bought on cryptocurrency exchanges like Coinbase, Kraken, and Crypto.com with dollars or other fiat currencies.

    Some cryptocurrency exchanges also provide staking services, which let you retain your tokens at the exchange and receive interest on your MATIC.

    Furthermore, decentralized exchanges like Uniswap let you purchase MATIC. You might be able to buy MATIC directly through a payment processor known as a fiat on-ramp, depending on the cryptocurrency wallet you choose. Alternatively, you might need to buy a different token and then pay a charge to exchange it for MATIC.

    Once you've connected an approved wallet, you may utilize the official Polygon Bridge to deposit and withdraw MATIC if you wish to receive it on the Polygon Mainnet. Some wallets also let you get MATIC straight from the Polygon network, such as the Crypto.com DeFi Wallet software.

    What is a Polygon wallet?

    A Polygon wallet gives users access to the Polygon bridge, which enables them to deposit and withdraw money between blockchains, stake MATIC on the Polygon network to earn interest, and send and receive cryptocurrency.

    Users can manage their tokens on the Polygon network using a non-custodial online wallet that is made available by the Polygon project. Non-custodial wallets provide the user complete control over the private keys. But keep in mind that MATIC may be stored in any ERC-20-compatible wallet.

    How can I get a Polygon wallet address?

    Any Polygon wallet address may be used to buy and send the MATIC token. After purchasing MATIC tokens, users should locate the ideal Polygon wallet to save them in.

    MetaMask and Ledger are two popular crypto wallets for Polygon; the latter is a hardware wallet that can be linked to MetaMask and adds further protection. Furthermore, advantageous annualized returns on MATIC are also provided through centralized lending protocols like Celsius and Nexo.

    What Can You Do with Polygon?

    Almost everything that you can accomplish on Ethereum is possible on Polygon, but without the exorbitant gas costs or the slow bandwidth. From being a straightforward scaling solution, Polygon has evolved into a vast and complex ecosystem with a variety of applications for both users and developers, including the ability to launch Ethereum-compatible blockchains, use Ethereum-based decentralized applications (DApps), create non-fungible tokens (NFTs), act as node validators and delegators, stake MATIC, and much more.

    Successful applications include yield-generating protocols like Aave or Curve Finance, decentralized exchanges like SushiSwap, and the most well-known decentralized NFT (Non-Fungible Token) market, OpenSea, all operating on Polygon.

    Instead of using Ethereum, you may utilize Polygon as the foundational blockchain for these protocols. For instance, OpenSea enables you to select Polygon as the primary network and utilize it whenever you trade NFTs; all you need to do is link your compatible wallets, such as MetaMask or Coinbase Wallet, to OpenSea.

    However, it should be noted that not all protocols based on Ethereum have their own Polygon iterations, and in this way, there are certain restrictions.

    Advantages and Disadvantages of Polygon

    You might be interested in knowing Polygon's main advantages and disadvantages. Continue reading to learn about Polygon's benefits and drawbacks, especially if you're thinking about purchasing MATIC.

    The Advantages of Polygon include:

    Swift transaction processing: Polygon may maintain quick transaction processing speeds by utilizing a consensus method that completes the transaction confirmation procedure in a single block. The processing of a block takes Polygon an average of 2.1 seconds.

    Transaction costs are continually low: A typical transaction cost for Polygon's platform is under $0.01.

    The Disadvantages of Polygon include:

    Polygon is not a self-contained blockchain: it is a Layer 2 solution that runs on top of the Ethereum platform. Polygon would probably lose value if the Ethereum platform is severely disrupted or disappears.

    Limited MATIC use cases: The MATIC token is intended to control and protect the Polygon platform as well as cover transaction costs. MATIC is not typically utilized for everyday transactions, in contrast to certain digital currencies.

    Why is Polygon beneficial to Ethereum?

    Ethereum is not in competition with Polygon. It is actually dependent on Ethereum and vice versa. The goal of Polygon is to use its network to build infrastructure that can support the widespread adoption of Ethereum. As a result, Polygon depends on Ethereum more than Ethereum does on Polygon. Given that Polygon is based on its own blockchain, this is expected.

    The primary drawback is the potential that Ethereum's value to be diminished by switching to Polygon for speed. In some regions, value dilution may even prevent Ethereum from adding more direct users. To illustrate, Polygon enhances Ethereum, leading to increased adoption of the Ethereum blockchain. Despite the possibility of taking the complete wealth locked away from Ethereum, its worth will increase as more users freely lock their money in the Ethereum network.

    Why is Polygon so unique?

    The only network that permits its token, MATIC, to be staked on the Polygon blockchain is Polygon, which distinguishes it from its layer 2 rivals. Users who participate in staking might get interest payments each year in exchange for validating transactions on the blockchain.

    Developers, small businesses, and regular customers may all benefit from Polygon's solutions. The creation of the Internet of Things (IoT) on the Ethereum blockchain is Polygon's main goal. The initiative seeks to increase Ethereum's user base to one billion without compromising security or decentralisation.

    The method used by Polygon distinguishes it from other L2 solutions. Developers can choose from a variety of Polygon solutions on a single network. This method gives developers more flexibility and control when selecting the scaling option that is most suited for their application.

    A developer on Polygon has the option of using optimistic rollups or zk-rollups. Instead, they might choose to adopt Polygon Avail, a very safe data availability blockchain that can be used for off-chain scaling solutions such as sidechains and independent chains.

    The debut of Polygon SDK, which greatly simplifies the process for developers to create a multichain network, was announced by Polygon network in May 2021. Developers may build independent chains that are totally responsible for their own security using the Polygon SDK. These independent sidechains will be connected to Ethereum via a specialized PoS bridge network.

    In addition, Polygon uses various scalability strategies, such as its PoS commit chain. The commit chain is sometimes referred to as Polygon or Polygon blockchain for simplicity. The project's PoS sidechain has proven to be the most well-liked offering. According to statistics, the Polygon blockchain has handled almost one billion transactions so far.

    Since the PoS commit chain is EVM-compatible, many Ethereum protocols seamlessly integrate with it. Consequently, developers may easily move DApps between platforms.

    Future of Polygon

    According to analyses from a number of sources, Matic may be a smart investment for holders wanting to sell or dump it after 2024, when the price is projected to increase by 398.71%. Based on projected Polygon coin prices, the cryptocurrency might yield +256.66% returns by 2025. 

    The goal of Polygon (MATIC), a cryptocurrency and technology platform, is to link and develop blockchains and projects that are compatible with Ethereum. Investors may purchase MATIC tokens on platforms like Coinbase or Kraken. MATIC tokens are used to manage and protect the Polygon network as well as cover transaction costs.

    It's also crucial to keep in mind that it can take a few years before MATIC reaches $100 or even $10. Additionally, keep in mind that cryptocurrencies are incredibly erratic investments. Its value can change substantially and quickly, both up and down.

    Polygon FAQs

    Does Polygon MATIC have a future?

    With the growing adoption of cryptocurrencies, Polygon has incredible potential for the next years. According to Bitnation's market projection, MATIC might hit an all-time high of $8.70 by 2030.

    Is Polygon a good cryptocurrency?

    For a number of reasons, cryptocurrency enthusiasts think Polygon is an excellent investment. The project could take over as Ethereum's preferred layer-2 solution.

    What is a polygon cryptocurrency?

    The goal of Polygon (MATIC), a cryptocurrency and technology platform, is to link and develop blockchains and projects that are compatible with Ethereum. Investors may purchase MATIC tokens on platforms like Coinbase or Kraken. MATIC tokens are used to manage and protect the Polygon network as well as cover transaction costs.

    Is Polygon better than Solana?

    Polygon is right behind Solana, which offers the Ethereum platform significant competition. When compared to Ethereum and Polygon, Solana offers significantly quicker transactions at a lower cost, while Polygon offers better transaction speeds.

    Should I invest in Polygon now?

    Depending on your financial objectives, investing in Polygon in 2022 can be a solid choice for you. Short-term traders could be more at risk and have more chances to lose money. However, Polygon is a cryptocurrency asset that might offer the potential for long-term investors to generate large gains.

    Is Polygon better than Ethereum?

    In order to take advantage of Ethereum's advantages without having to pay the infamous gas prices that are bad for its users, Polygon is a "Layer-2" scaling solution for Ethereum. Although it was created as a blockchain network on top of Ethereum to provide users a quicker and more affordable Ethereum experience, Polygon is much more than just a scaling solution.