Polygon (MATIC) is a Layer 2 scaling solution for Ethereum that aims to provide major scalability improvements for decentralized applications by utilizing a technology called sidechains. It’s a protocol and a framework for constructing and connecting Ethereum-compatible blockchain networks. By combining the best of Ethereum and sovereign blockchains into a fully-fledged multi-chain system, Polygon strives to overcome the limitations of Ethereum like low throughput, poor UX, and no sovereignty.
Polygon’s innovation comes from its use of sidechains, more specifically, ‘matic sidechains,’ which are blockchains running parallel to the Ethereum blockchain. Every such sidechain operates independently, allowing for a significantly higher number of transactions to be processed concurrently. This massively improves transaction speed and reduces costs, two factors that have been major impediments to the wider adoption of Ethereum’s blockchain technology.
The professional view of Polygon is increasingly positive, thanks to its clear utility and innovative approach to blockchain scaling. With its groundbreaking technology and practical solutions, Polygon is paving the way for the next stage of blockchain evolution, particularly in terms of implementing business loans, credit systems, and other financial services on the blockchain.
What is Matic?
Matic, now rebranded as Polygon, is the native cryptocurrency token of the Polygon network. It plays several critical roles within the Polygon ecosystem: participating in the network’s Proof-of-Stake consensus mechanism, paying for transaction fees, contributing to the security of the network through staking, and participating in the governance of the protocol.
Interestingly, Matic also introduces a new approach to the idea of ‘credit’ in blockchain systems. In traditional systems, ‘credit’ usually refers to a measure of trustworthiness or financial solvency. In the context of Polygon, ‘credit’ takes on a different meaning. Here, it signifies a participant’s contribution to the network, represented by the number of Matic tokens they hold and stake.
By staking Matic tokens, network participants can receive various benefits, such as a share in the transaction fees and the ability to participate in the network’s governance. The more Matic a participant stakes, the more ‘credit’ they have in the network, and the greater their rewards and influence.
How Does Polygon (Matic) Work?
Polygon utilizes a combination of Proof-of-Stake (PoS) and Plasma frameworks to offer a scalable and secure solution. It uses sidechains for off-chain computation while ensuring asset security using the Plasma framework and a decentralized network of PoS validators.
The Polygon architecture can be broken down into four layers:
- Ethereum layer: This layer is essentially the Ethereum chain and is used for staking and checkpointing.
- Security layer: Optional and can provide ‘as needed’ security to the Polygon PoS chain.
- Polygon Networks layer: Consists of PoS chain(s) and other stand-alone chains.
- Execution layer: This layer is Polygon’s Ethereum Virtual Machine (EVM) implementation used for executing smart contracts.
| Layer | Description |
| Ethereum Layer | This layer is the foundation, where the Ethereum blockchain operates. Polygon uses Ethereum for network security and for finalizing transactions, leveraging Ethereum’s well-established security and decentralization. |
| Security Layer | This is an optional layer that provides additional security to the Polygon chain through validators and checkpoints. It’s a system of ‘guards’ designed to prevent attacks and secure the network. |
| Polygon Networks Layer | This is where the actual computation and storage occur for applications built on Polygon. It hosts multiple stand-alone chains (also called child chains) and sidechains for various applications. |
| Execution Layer | This layer is responsible for executing smart contracts and transactions in the Polygon ecosystem. It’s designed to be Ethereum-compatible, allowing developers to deploy existing Ethereum contracts without modification. |
The table above illustrates the operational layers of Polygon.
How Do You Use The Polygon Network?
To use the Polygon network, users must follow these steps:
- Get a Polygon-compatible wallet: Like Metamask or the Polygon Wallet.
- Buy some Matic tokens: These can be bought from exchanges like Binance or Coinbase.
- Connect your wallet to the Polygon network: This requires adding the network’s details to your wallet’s settings.
- Transfer assets to the Polygon network: This process is also known as ‘bridging.’
- Interact with DApps on Polygon: Now you can use Polygon-based applications like Quickswap, Aavegotchi, and more.
Advantages Of Polygon (MATIC)
Polygon (MATIC) has several notable advantages:
- Scalability: Provides higher throughput and faster transactions.
- Interoperability: Can communicate and exchange value with other blockchains.
- Security: Leveraging Ethereum’s security through its checkpointing mechanism.
- User Experience: Seamless user experience with fast and low-cost transactions.
- Sovereignty: Individual blockchains can control their governance and rely on Ethereum for security.
Disadvantages Of Polygon (Matic)
While Polygon has many strengths, it also has some potential disadvantages:
- Reliance on Ethereum: While Ethereum’s security is a boon, it also ties Polygon’s fate to Ethereum’s.
- Centralization risks: The validator set in Polygon’s PoS commit-chain is permissioned, which could potentially lead to centralization.
- Smart contract risk: Like all blockchain platforms, there is always a risk of smart contract bugs or exploits.
What Can You Do On Polygon?
The Polygon network allows you to:
- Interact with Decentralized Applications (DApps): Polygon hosts a multitude of DApps, from decentralized exchanges to gaming platforms.
- Stake MATIC tokens: Participate in the network’s PoS consensus mechanism and earn rewards.
- Execute Smart Contracts: Run smart contracts in a scalable, cost-effective environment.
- Issue and transfer tokens: You can issue your own tokens and transfer them with low fees and fast transaction times.
- Build your own blockchain networks: With Polygon’s architecture, you can build and customize your own blockchain networks.
Popular DApps Using Polygon
A number of popular decentralized applications (DApps) utilize Polygon’s scalable infrastructure:
- QuickSwap: A decentralized exchange built on Polygon.
- Aavegotchi: A DeFi-focused crypto-collectibles game.
- Curve Finance: A stablecoin swap platform deployed on Polygon.
- SushiSwap: Another decentralized exchange which has expanded to Polygon.
How To Buy Polygon (Matic)?
To buy Matic tokens:
- Choose a cryptocurrency exchange: Select an exchange that lists trading Matic, such as Binance or Coinbase.
- Create an account: Sign up for an account on your chosen exchange.
- Deposit funds: Deposit fiat or cryptocurrency into your exchange account.
- Buy Matic: Use your deposited funds to purchase Matic.
- Securely store your Matic tokens: Transfer your Matic tokens to a secure wallet that supports Polygon.
Future of Polygon (Matic)
Looking ahead, Polygon has the potential to play a significant role in the future of Ethereum and decentralized applications. As Ethereum continues to struggle with high fees and scalability issues, Layer 2 solutions like Polygon are well-positioned to alleviate these problems. The growing ecosystem of DApps on Polygon and the increasing number of partnerships with other blockchain projects show a promising future for Polygon. With Ethereum continuing to be a leading platform for decentralized applications (DApps) and smart contracts, solutions like Polygon, which improve its speed and cost-effectiveness, are crucial.
There is a growing demand for Polygon’s services in the world of blockchain project launches and professional software development. Every developer increasingly sees the advantages of deploying their projects on a platform that provides the security and decentralization of Ethereum, combined with the speed and low cost of Polygon’s Layer 2 solution.
Furthermore, the application of Polygon’s technology is not limited to cryptocurrency and blockchain projects. The possibilities for integrating this technology into sectors like business loans, credit systems, and intelligent software are vast and largely untapped.
With the rise of decentralized finance (DeFi) and the increasing use of blockchain in mainstream business operations, the value and utility of Polygon (MATIC) will likely continue to grow.
Conclusion
Polygon (Matic) is an innovative solution addressing some of the most pressing issues in blockchain today – scalability, speed, and interoperability. With its Layer 2 scaling solution, it’s not only making Ethereum more accessible but also contributing to the broader adoption of blockchain technology. The future of Polygon (Matic) looks bright as more developers build on its network and more users benefit from its solutions.
