Polygon, beforehand often called Matic community, is a well-established cryptocurrency that’s well-recognized amongst crypto buyers and fans. Nonetheless, not as many individuals know that it’s truly a layer 2 answer to a different digital asset — Ethereum.
Why is that necessary, you might ask? Properly, for one, it makes this cryptocurrency extra future-proof. In keeping with the creator of Ethereum, Vitalik Buterin, many post-Merge enhancements to the principle community can be performed utilizing layer 2 options like Polygon.
Polygon does extra than simply make the Ethereum ecosystem extra environment friendly — it allows cross-chain communications for various blockchains within the community. It’s also top-of-the-line platforms for creating interconnected blockchain networks. Polygon’s staff refers to their challenge as “Ethereum’s Web of blockchains.”
Who Сreated Polygon?
Polygon was created in October 2017 by India’s first crypto billionaires: Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Again then, it was often called the “Matic community.”
The Polygon ecosystem has all the time been envisioned as an “assistant” to the Ethereum community, aiming to unravel and tackle its key points, comparable to excessive gasoline charges and lack of correct scalability options. Regardless of that, it does have its personal unbiased proof-of-stake (PoS) blockchain.
The Founders of Polygon
Jaynti Kanani, the CEO of Polygon, has a background in software program engineering. He had labored at corporations like Microsoft, Amazon, and Adobe up to now.
Anurag Arjun, the CTO of Polygon, is a polymath who has expertise in fields like machine studying, arithmetic, and physics.
Sandeep Nailwal, the COO of Polygon, has over 15 years of expertise within the monetary sector. He beforehand labored at Deloitte as a administration advisor. Nailwal can be the co-founder of Aave, one other in style cryptocurrency challenge.
In 2021, the staff behind Polygon determined to rebrand the challenge with a purpose to higher replicate their imaginative and prescient of a polychain scaling platform that helps a number of blockchains. The brand new identify, Polygon, was chosen as a result of it channels the thought of a “community of many alternative chains.”
Along with altering the community’s identify, new options additionally obtained launched, elevating Polygon above its earlier standing as a easy scaling answer that might solely supply plasma chains.
This rebranding has been an immense assist in rising consciousness of Polygon and its native token, MATIC. The brand new identify clarified what the community meant to do and introduced a lot consideration to this cryptocurrency.
What Is the MATIC Token?
The native token of the Polygon community, MATIC is used to pay transaction charges and can be staked with a purpose to earn rewards for serving to to safe the community. As well as, builders who construct on Polygon can use MATIC tokens to entry options like gas-free withdrawals and quick transactions.
You should purchase MATIC token on Changelly.
How Does Polygon Work?
The Ethereum blockchain undeniably has a variety of points that gravely impede its progress. Sluggish transaction speeds and excessive gasoline charges make it unattainable to make use of ETH for on a regular basis funds. Polygon permits customers to hold out those self same Ether transactions however in a sooner, cheaper, and general way more environment friendly method.
To do that, Polygon makes use of a modified proof-of-stake algorithm to safe its community, thus making it attainable for consensus to be reached with each single block. The Polygon community is made up of a collection of sidechains linked to the Ethereum mainnet. These sidechains are used to course of transactions off-chain, which helps enhance the community’s scalability.
Let’s check out a number of the principal traits of the Polygon community.
Layer 2 Answer
Polygon is a layer 2 answer that helps to scale the Ethereum blockchain. It does this through the use of sidechains linked to the principle Ethereum blockchain. This permits for off-chain transactions which are then settled on-chain. One other perk right here is that it allows Polygon to course of transactions a lot sooner than ETH.
Builders who construct on Polygon can use MATIC tokens to pay transaction charges. Due to this, Polygon has decrease transaction charges than Ethereum. As well as, Polygon has carried out various options to scale back gasoline prices, comparable to gas-free withdrawals and quick transactions.
Later 2 options are going to play a key function in Ethereum’s improvement after the Merge. In consequence, increasingly more folks will doubtless turn into conscious of this amazingly revolutionary expertise and, by extension, Polygon.
Proof of Stake (PoS)
Having a PoS blockchain permits Polygon to reap the benefits of options like sensible contracts, which allows the creation and deployment of decentralized functions (dApps). Moreover, it lets customers who maintain MATIC tokens stake them to earn rewards. This makes the community enticing to builders and buyers alike.
Polygon’s staff additionally used the proof-of-stake nature of its consensus mechanism to implement various safety features, comparable to fraud proofs.
The “Polygon Bridge” is the answer that enables Polygon to connect with the Ethereum community. It additionally allows the switch of NFTs and ERC-20 tokens from the MATIC blockchain to the ETH one.
Polygon has two foremost bridges: the Proof-of-Stake and the Plasma Bridge. Though each of them have the identical goal — transferring digital property from one blockchain to a different — they make use of completely different safety strategies.
Similar to the identify suggests, the proof-of-stake bridge makes use of the PoS consensus mechanism as its major safety measure. It’s what helps most buyers and dApp customers to switch tokens and ETH between the 2 chains. The Plasma bridge is extra in style with builders as it’s typically safer. Nonetheless, plasma chains that the Plasma bridge operates on are much less user-friendly and may be much less handy to make use of.
The Polygon community is powered by the Polygon Protocol, which consists of a set of sensible contracts deployed on the Ethereum blockchain. The protocol is designed to supply a variety of options to customers, together with however not restricted to:
- Fuel-free withdrawals. This function permits customers to withdraw their tokens from the Polygon community with out having to pay gasoline charges.
- Quick transactions. Transactions on the Polygon community are confirmed in just some seconds.
- Low transaction charges. Customers solely should pay a small payment after they make a transaction on the community.
- Compatibility with a number of programming languages. This makes it a lot simpler for builders to create and deploy dApps on the Polygon community.
How Does Polygon Differ from Different Blockchains?
Polygon has fairly just a few options that make it stand out from the group of many different cryptocurrencies and/or layer 2 options. A few of them we’ve already talked about above — specifically, its unprecedented interoperability with the Ethereum blockchain, low charges, excessive transaction speeds, help of a number of programming languages, and so forth. Nonetheless, that’s not all that makes it distinctive.
Most significantly, the mixture of scaling options provided by Polygon is presumably full like no different: along with the plasma chains and sidechains talked about above, it additionally has zk (zero-knowledge) and optimistic rollups. Builders can decide whichever answer matches their challenge greatest, which makes the Polygon community extremely versatile.
Polygon can be an EVM (Ethereum Digital Machine) sidechain, however that doesn’t make the challenge distinctive in itself. Nonetheless, it truly commits checkpoints to Ethereum, which considerably boosts the safety of the entire community. That’s the place the distinction between Polygon and different EVM-compatible initiatives lies.
Polygon’s Software program Improvement Equipment (SDK)
The Polygon software program improvement package is what makes it straightforward for builders to construct dApps on the community. As we’ve already talked about above, its SDK helps all kinds of various programming languages, which makes it accessible to an enormous vary of builders.
In keeping with the event staff, with this SDK, Polygon goals to remodel Ethereum right into a fully-fledged multi-chain system. Though many chains are already engaged on Ethereum, they’re a bit chaotic: the Polygon SDK needs to introduce that much-needed construction to the ecosystem. That is performed utilizing two various kinds of options:
- Secured Chains – The Layer 2 answer
Secured chains are layer 2 options that depend on the principle Ethereum chain for all their safety wants as an alternative of building their very own validators. The SDK provides help for the most well-liked layer 2 options, comparable to zk-rollups or optimistic rollups. This a part of the package is ideal for each startups and extra established initiatives that require a excessive degree of safety.
- Stand-Alone Chains
Stand-alone chains are blockchains which have their very own safety options and thus aren’t as depending on the Ethereum foremost chain. These largely embrace sidechains and numerous enterprise chains. They’re much less decentralized and never as safe as different options, however they provide extra independence and adaptability, making them good for initiatives with sturdy communities and enterprises.
Polygon SDK Structure
The structure of the Polygon improvement package was designed to offer most Ethereum compatibility, modularity, and extensibility. All of its parts help the principle targets of the community. Right here’s what it appears to be like like:
You possibly can study extra about it in this article on Polygon’s weblog.
Which DApps Does Polygon Use?
Polygon presently helps over 7,000 dApps, with extra rising each week. A number of the hottest Polygon-based decentralized functions embrace:
- Sunflower land, a recreation
- QuickSwap, an trade
- Arc8, a recreation
- 1inch Community, a DeFi challenge
- Uniswap V3, an trade
In keeping with the web site DappRadar, whereas video games make up most initiatives with a excessive variety of distinctive addresses, they nonetheless herald a comparatively small quantity of revenue and buying and selling quantity. Exchanges and DeFi initiatives are sometimes not as in style but have a a lot larger quantity of crypto being handed by the community’s sensible contracts.
The Polygon challenge is already an extremely revolutionary and environment friendly community and dApps deployment platform in its personal proper: the truth that it’s a scaling answer for Ethereum is only a bonus. The Ethereum-Polygon synergy attracts a lot consideration to this challenge, nevertheless it additionally has followers that prefer it for what it’s: a fantastic platform for multi-chain options and dApp deployment.
Due to loads of partnerships, together with these with main corporations, comparable to Disney and Coca-Cola, Polygon’s worth elevated by over 100% throughout a harsh bear market. Contemplating MATIC tokens can be staked, it undoubtedly grew to become a really enticing cryptocurrency for every kind of buyers.
Total, Polygon has an actual likelihood of changing into one of many main options that assist scale Ethereum and of being a broadly adopted cryptocurrency that retains on getting extra mainstream. We’re undoubtedly enthusiastic about its additional improvement!
Is Polygon a superb funding?
Polygon has lots going for it and appears to be comparatively future-proof. In the end, nonetheless, what defines it as a superb funding or not is the way it matches your portfolio.
What’s the Polygon crypto used for?
Polygon is a layer 2 answer that will increase scalability and reduces charges on the Ethereum community. It can be used to deploy dApps and stake MATIC tokens.
Does the Polygon crypto have potential?
The crypto market is extraordinarily unpredictable, however Polygon has a variety of issues that may assist a crypto asset e book a one-way ticket to the moon: a giant market cap, revolutionary performance, prospects, and a fantastic group.
Is Polygon the identical as Ethereum?
Whereas the 2 naturally have their similarities, Polygon and Ethereum are two completely different cryptocurrencies.
Disclaimer: Please word that the contents of this text are usually not monetary or investing recommendation. The data offered on this article is the creator’s opinion solely and shouldn’t be thought-about as providing buying and selling or investing suggestions. We don’t make any warranties concerning the completeness, reliability and accuracy of this info. The cryptocurrency market suffers from excessive volatility and occasional arbitrary actions. Any investor, dealer, or common crypto customers ought to analysis a number of viewpoints and be accustomed to all native rules earlier than committing to an funding.