What is Polygon (MATIC)?

Polygon was founded in India in 2017 and was rebranded as Polygon in 2021.

Polygon is a blockchain platform that aims to improve speed and reduce cost This is especially true for the Ethereum blockchain.

It is designed to work alongside Ethereum and can be used to build decentralized applications (dApps) that are compatible with Ethereum.

Polygon uses a technology called sidechains, which are connected to the main Ethereum blockchain. The sidechains make it easier and faster to process transactions.

Polygon also has its own cryptocurrency, called MATIC, which is used for transactions within the network.

Quick Facts

• Polygon was originally called the Matic Network, but rebranded to Polygon in 2021.

• Polygon is a Layer-2 scaling solution for Ethereum.

• Polygon has a strong focus on decentralized finance (DeFi).

Layer-2 Network In A Nutshell

Polygon is often described to be a Layer-2 network. But, what exactly is a Layer-2 network?

A Layer-2 network is designed to work alongside the Layer-1 network. It provides additional functionality or improves the performance of the overall system.

In the context of blockchain technology, a Layer-2 network is often used to scale a blockchain. This means it allows the blockchain to process more transactions per second.

They are important because many blockchains, such as Ethereum, can become congested and slow when there is a high volume of transactions.

Layer-2 networks achieve this by taking some of the workloads off of the main blockchain and processing transactions off-chain. This makes the process faster and more efficient.

Other examples of Layer-2 networks in the blockchain space include the Lightning Network for Bitcoin.

There are several different types of layer-2 solutions, including:

State channels

These are channels that exist between two or more parties. This allows them to conduct transactions off-chain.

Once the parties have finished conducting their transactions, they can update the main blockchain with the final result.

Plasma

This is a framework for creating side chains that are connected to the main blockchain.

Transactions on the sidechain are processed and validated by a small group of participants. After that, the final result is recorded on the main blockchain.

Rollups

These are similar to plasma, but they involve bundling multiple transactions into a single transaction and recording it on the main blockchain.

This can reduce the workload on the main blockchain and make it faster and more efficient.

How Does Polygon Work?

Polygon is a multi-level platform that aims to increase the scalability of Ethereum through the use of sidechains.

These sidechains are separate blockchains that are connected to the main Ethereum blockchain. They are able to support various decentralized finance (DeFi) protocols available on Ethereum.

Polygon can be compared to other blockchain networks such as Polkadot, Cosmos, and Avalanche.

The core of the Polygon network is the software development kit (SDK). This is used to create Ethereum-compatible decentralized applications as sidechains and connect them to the main blockchain.

There are several different methods for constructing scalable side chains on Polygon, including Plasma Chains, zk-Rollups, and Optimistic Rollups.

The main chain of Polygon is a proof-of-stake (PoS) sidechain, where participants can stake MATIC tokens in order to validate transactions and vote on network upgrades.

What is MATIC Used For?

MATIC is the native token of the Polygon.

MATIC is used to pay transaction fees on the Polygon network and it is also used as a means of governance. This allows token holders to participate in the decision-making process for network upgrades and development.

In addition to its use on the Polygon network, MATIC can also be used as a means of value transfer and store of value.

It can be bought and sold on cryptocurrency exchanges and held in a wallet, and it may also be accepted as a form of payment by merchants who choose to accept it.

Who Invented Polygon?

Jaynti Kanani is the CEO and co-founder of Polygon (formerly known as Matic Network). He has a background in software development and has worked on various projects related to blockchain technology and decentralized systems.

Prior to co-founding Polygon, he co-founded a software development company called Mirza Group along with Sandeep Nailwal.

Sandeep Nailwal is the COO and co-founder of Polygon. He has a background in software development. He has also worked on various projects related to blockchain technology and decentralized systems.

Anurag Arjun is the Chief Scientist and co-founder of Polygon. He has a background in computer science and has worked as a researcher at IIT Bombay.

Here he focuses on blockchain technology and distributed systems. He has also co-authored several papers on these topics.

It could be said that the co-founders of Polygon have a strong background in software development and research, and they are experienced in the field of blockchain technology and decentralized systems.

What Influences Polygon’s (MATIC) Price?

The price of Polygon's native token, MATIC, is influenced by a variety of factors, including market demand, the overall state of the cryptocurrency market, and the adoption and use of the Polygon platform.

Like all cryptocurrencies, the price of MATIC is subject to significant price fluctuations.

This can be influenced by a variety of market factors, including changes in investor sentiment, regulatory developments, and global economic conditions.

In general, an increase in demand for MATIC can lead to an increase in its price, while a decrease in demand can lead to a decrease in its price. This is subject to the general rule of supply and demand.

The adoption and use of the Polygon platform can also affect the price of MATIC.

If more developers and users are building and using decentralized applications (dApps) on the Polygon platform, this can increase the demand for MATIC and drive up its price.

Similarly, if the Polygon platform is perceived as being more useful and valuable to users, this can also increase the demand for MATIC and its price.

How Many MATIC coins are there?

The total supply of Polygon (formerly known as Matic Network) is 10,000,000,000 (10 billion) coins.

Polygon vs Ethereum

Ethereum and Polygon are both decentralized platforms that support smart contracts and allow developers to build and deploy decentralized applications (dApps).

However, there are some key differences between the two:

Compatibility

Polygon is fully compatible with Ethereum and uses the Ethereum Virtual Machine (EVM) as its runtime environment. This means that any dApp built on Ethereum can also run on Polygon without any changes.

Use cases

Both Ethereum and Polygon support a wide range of use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), and supply chain management.

However, Polygon's focus on fast and cheap transactions may make it more attractive for certain types of use cases, such as high-frequency trading or games with in-app purchases.

How To Buy MATIC?

To buy MATIC , you will need to:

1. Set up a wallet that supports the storage of MATIC. Some options for MATIC wallets include MyEtherWallet, Trust Wallet, and Ledger Nano.

2. Find a cryptocurrency exchange that supports the purchase of MATIC. Some popular exchanges that offer Polygon include Binance, Bitfinex, and Kraken.

3. Create an account on the exchange of your choice and complete the necessary identity verification processes.

4. Deposit funds into your account using a payment method supported by the exchange.

5. Search for MATIC on the exchange and place an order to buy it using the funds in your account.

6. Once the order is complete, MATIC will be credited to your account on the exchange. Make sure to transfer it to your wallet for safekeeping.

It is important to note that the process for buying MATIC may vary slightly depending on the exchange you are using. Be sure to carefully read and follow the instructions provided by the exchange to ensure a smooth and secure transaction.

How To Stake Polygon (MATIC) ?

1. Set up a wallet that supports the storage of MATIC . Some options for Matic wallets include MyEtherWallet, Trust Wallet, and Ledger Nano.

2. Find a validator or staking pool that allows you to delegate your MATIC tokens. Some popular options include Staked, Binance, and Kraken.

3. Transfer your MATIC tokens from your wallet to the validator or staking pool of your choice.

4. Follow the instructions provided by the validator or staking pool to complete the staking process. This may include setting up a staking account, choosing the amount of MATIC you want to stake, and agreeing to the terms and conditions of the staking service.

5. Once your MATIC tokens are successfully staked, you will begin earning rewards in the form of additional MATIC tokens. These rewards will be credited to your account periodically, depending on the terms of the staking service you are using.

It is important to carefully research and compare different validators and staking pools before deciding which one to use. Be sure to consider factors such as fees, reputation, and track record when choosing a staking service.

Final thoughts On Polygon

Polygon is a decentralized platform that aims to provide fast and cheap Ethereum-compatible transactions.

It uses a combination of side chains and a layer 2 scaling solution to reduce transaction costs and improve the speed of transactions on the Ethereum network.

Polygon has partnerships with several major projects in the cryptocurrency and blockchain space, including Chainlink, and Aave.

It has also been endorsed by some high-profile figures in the industry, such as Su Zhu, CEO of Three Arrows Capital, and Anthony Pompliano, co-founder of Morgan Creek Digital.

However, it is important to note that the success or adoption of any cryptocurrency or blockchain project is highly uncertain and can be influenced by a wide range of factors.

It is important to carefully consider these risks and conduct thorough research before making any investment decisions.