Polygon

What is Polygon?

Polygon, formerly known as Matic Network, serves as both an Ethereum Layer 2 solution and a cryptocurrency.

Polygon is an intuitive Plasma-based sidechain solution that works alongside Ethereum net. It provides all the necessary tools needed to create decentralized applications (dApps). Currently, the Polygon sidechain hosts more than 50 unique decentralized applications.

Additionally, Polygon allows you to create other solutions such as zero-knowledge convolutionsoptimistic rollups, and APIs and SDKs.

Polygon is the native currency at the heart of the platform. It is based on the ERC-20 token standard. The total supply of Polygon coins is 10,000,000,000. When referring to Polygon’s native token, the term Polygon is used, although its official name is MATIC. This means that Polygon and MATIC are used interchangeably.

MATIC is Polygon’s utility token.. It is used for payment transaction costs and serves as a settlement currency. Moreover, the Polygon token grants management rights. You can even bet on it.

Like most digital assets, Polygon’s price is subject to volatility. If you want to dive deeper into MATIC’s price, check out the chart above.

What are the main features of the landfill?

Polygon’s main goal is solve the scalability problem of Ethereum and promote mass adoption of cryptocurrency.

It also hopes to solve block-related issues such as block confirmation time and block size. In the future, the project aims to solve scalability issues across multiple blockchains. Some of the main advantages of the Polygon network are extremely fast transactions, increased security and low transaction fees.

Polygon is a decentralized platform that enhances this aspect with an additional layer block manufacturers.

When explaining what Polygon is, it was briefly mentioned that the solution uses Plasma frame. This customized framework was implemented to enhance the security of digital assets. The most important thing is allows Polygon sidechain to process over 65,000 transactions per block. Additionally, the Proof-of-Stake (PoS) consensus mechanism facilitates transaction processing. These Plasma-based sidechains support various DeFi protocols on Ethereum.

The Plasma framework was originally proposed by one of the founders of Ethereum, Vitalik Buterin. This brings a lot of benefits to Polygon in many ways. For example, thanks to this structure and PoS consensus mechanism, Polygon can easily host countless dApps.

Polygon allows you to place bets. In order to join the PoS consensus mechanism and become a validator, you must provide your Polygon tokens as collateral or delegate your tokens to another validator. Staking rewards are provided in the form of MATIC tokens.

Polygon is supported by Coinbase and Binance.

There are various decentralized platforms that provide sidechains or layer 2 solutions, such as Liquid Network, Loom Network, Raiden Network or Lightning Network. So Polygon has a lot of work to do when it comes to market share.

Who developed the Polygon?

Matic Network was founded by a team of three Indian citizens – Sandeep Nailwal, Jainty Kanani and Anurag Arjun in October 2017.

Sandeep Nailwal started out as a software engineer and has been working with blockchain technologies since 2015. He completed his MBA in Technology, Finance and Supply Chain Management from NITIE. Sandeep co-founded a cryptocurrency project called ScopeWeaver.com. He currently works as a blockchain programmer.

Before launching Matic Network, Jainti Kanani worked as a data scientist at Housing.com. He attended Dharmsinh Desai Institute of Technology where he completed his Bachelor’s degree in Information Technology. When Matic Network launched, he served as CEO until the end of 2021.

Co-founder Anurag Arjun takes care of the business side of Polygon. He successfully completed his studies from Nirma Institute of Technology and received a Bachelor’s degree in Computer Engineering. Anurag is the only core team member with no programming experience. In addition to Polygon, he also co-founded Dexter Consultancy, where he worked as a product manager for 4 years.

In its early days, the Matic network played a significant role in the development of the Ethereum blockchain.. Some of their most notable achievements include Dagger, Ethereum’s event notification engine, the WalletConnect protocol, and Plasma MVP.

One of the main goals of the Matic Network team was to solve the “elephant in the room” – the scalability problem of Ethereum.

In April 2021, it was renamed Polygon.

EIP-1559 Ethereum Update and London Hard Fork

Ethereum Improvement Proposal (EIP) 1559 revolves around the mechanism for calculating transaction fees. This is part of the London hard fork.

The London hard fork was launched on the Ethereum network in August 2021. The following year, it was officially activated on Polygon in January 2022.

Transaction fee calculations will no longer be processed in the first price auction. Instead, a base board model was implemented. This means that Polygon tokens will be burned as a base fee.

The EIP-1559 update provides stability. The most important, allows network participants to roughly calculate the transaction fee. This way, they do not lose significant amounts of tokens due to overpayments.

As a result of this update, MATIC tokens will become more deflationary. This is due to the fact that these tokens will no longer be distributed among miners, but will be burned. Approximately 27,000,000 MATIC tokens will be burned every year.. In turn, this could also mean an increase in Polygon’s price.

Unfortunately, EIP-1559 does nothing when it comes to reducing transaction fees on the Ethereum network.

Be sure to check the price of MATIC in the chart above before making your purchasing decision.