Polygon, previously Matic Network, is a scaling solution that aims to improve the speed, reduce the cost, and simplify the process of transactions on blockchain networks. The focus of Polygon is Ethereum, a platform that hosts a variety of decentralized applications including virtual worlds, games, art marketplaces, and financial services.
However, high levels of activity on Ethereum have resulted in increased transaction costs and network congestion. Polygon offers a layer-2 solution, which acts as an additional layer to Ethereum without modifying the underlying blockchain.
Key Takeaways
- Polygon, formerly known as Matic Network, is a Layer 2 solution aiming to scale Ethereum, alternatively referred to as a decentralised Ethereum scaling platform.
- It is fully compatible with Ethereum, which means that any application built on the main Ethereum blockchain can easily migrate to Polygon to take advantage of its faster transaction speeds and lower fees.
- Polygon has a flexible framework designed to be easy to use for developers, with a range of tools and libraries that make it simple to build and deploy decentralized applications on the network.
- The Polygon network is secured by the MATIC cryptocurrency. MATIC is an ERC-20 token that is used to govern and secure the Polygon network and to pay for transaction fees.
Polygon was founded by Sandeep Nailwal, Jaynti Kanani, and Anurag Arjun. Kanani and Nailwal are both experienced software engineers, while Arjun has a background in finance and business development. The Polygon team is based in India and has offices in Mumbai and New Delhi.
How does Polygon Work?
The Polygon network uses the Plasma framework to provide a scaling solution for the Ethereum blockchain. Plasma is a Layer 2 scaling technology that allows for faster and cheaper transactions on a blockchain by processing them off-chain. In Polygon’s case, this means that transactions are processed on a network of sidechains secured by proof of stake.
This allows for improved performance and lower transaction fees compared to the Ethereum main chain. The plasma framework Polygon’s key part of the architecture and helps to make it a scalable and user-friendly platform for dApps.
The network uses a unique PoS consensus mechanism referred to as Chain-based Proof-of-Stake (CPoS). Within this system, each sidechain has a set of validators responsible for verifying and processing transactions on the it. The sidechain chooses validators based on the number of tokens they stake, and rewards them with transaction fees in return.
Polygon vs. Ethereum
Polygon tackles the performance and transaction cost of the Ethereum network. Its blockchain offers additional features for security, sovereignty, user and developer experience, and modularity.
Advantages of MATIC
- Scalability: MATIC side chains scale the Ethereum blockchain to allow for faster and cheaper transactions.
- Interoperability: The network’s design makes it interoperable with other blockchain platforms. It can interact with and transfer value between different networks.
- Security: MATIC uses the proof-of-stake (PoS) consensus mechanism, which is regarded as a more secure alternative, and known to be more energy-efficient than proof-of-work (PoW) mechanisms used by other networks such as Bitcoin and Litecoin.
- Flexibility: MATIC is a modular platform that allows developers to easily build and deploy their own custom blockchain solutions on top of the network.
Polygon’s Carbon Neutrality
The Polygon network is actively working towards carbon neutrality as part of its Green Manifesto initiative. The goal is to promote sustainable development in the blockchain industry. To support this, Polygon has allocated $20 million for community initiatives that use Web3 tech to create a future that’s sustainable. This includes developing solutions for retiring carbon credits on-chain.
Partnering with KlimaDAO, the network has invested $400,000 in carbon credits, equivalent to almost 90,000 tonnes (90 million kg) of CO2 emissions. KlimaDAO’s offset aggregator tool retired these credits, creating MCO2 and BCT carbon credits from offsets that certify under VCS – the Verified Carbon Standard.
Polygon FAQ
Frequently asked questions about MATIC.
Is Polygon (MATIC) a competitor to Ethereum?
The relationship between Polygon and Ethereum is symbiotic, rather than competitive. Polygon‘s goal is to create infrastructure that can handle the large-scale adoption of Ethereum through the its network. Therefore, considering this, we conclude that Polygon is more reliant on Ethereum than vice versa, since MATIC is built on top of the latter.
There is a potential downside to this, however, since users may switch to Polygon for faster transactions, which could lead to Ethereum’s value dilution, potentially hindering its direct user growth, at least in certain areas.
Nevertheless, MATIC ultimately improves Ethereum by increasing the number of users and amount of capital locked in the Ethereum blockchain, driving up its value, despite the potential for total value locked (TVL) to be taken away.
What makes MATIC Unique?
The unique combination of features that MATIC offers, such as PoS Chain, Plasma Chains, low transaction fees, optional shared security, the Polygon SDK that offers modularity and the planned integration of ZK roll-ups and Optimistic roll-ups, make it a highly versatile project.
A key principle of the MATIC network is the autonomy it provides for Ethereum through the use of side-chains. This modular development approach allows for dedicated capacity and a fully customizable technology stack. It makes Polygon a prime choice for various applications with high data sensitivity.
Developers will find the experience similar to Ethereum. With no need for additional protocol-level knowledge, and there are no token deposits, fees, or permissions required. The Polygon team also asserts that it can effectively integrate any scalability solution in addition to its own. This is a crucial aspect that positions MATIC as a leader in the rapidly evolving Ethereum and broader blockchain ecosystem.
How does the MATIC Network Secure Itself?
Staking is a crucial aspect of the MATIC ecosystem. It utilizes a Layer 2 solution with a network of PoS validators. To participate in the network’s PoS consensus mechanism, validators stake MATIC as collateral and receive extra tokens in return. For those who don’t want the validator status, they can still delegate their MATIC to another network validator. They will earn the same type of rewards.
Along with PoS checkpointing, the Polygon network employs block producers for increased decentralization. The block producers bring the final state of the main chains using mechanisms that are fraud-proof and checkpoints.
How Many MATIC Tokens Are There?
MATIC has a max supply of 10,000,000,000 tokens, with a circulating supply of around 8.7 Billion MATIC. The token reached an all-time high market cap of ~$20 Billion.
Final Thoughts
As a layer 2 network, the crypto space considers MATIC as the best one there is. Speaking of layers, we are also on our way to implementing a financial layer in our matchmaking ecosystem! Our upcoming token, DUA, will be the financial arm of the dua app, now also connecting our +5M users financially. Read more about DUA and follow our Twitter for updates!