What is The Polygon Network?
To more accurately convey their goal of a poly chain scaling structure that enables several blockchains, the Polygon group decided to restructure the program in 2021. The new name, Polygon, conveys the concept of a ‘network of many unique chains.’
The platform’s name was changed, and additional capabilities were added as well, boosting Polygon above its prior position as a straightforward scaling approach that could just provide plasma chains.
The redesign has contributed significantly to raising the popularity of Polygon and MATIC, its native coin. The new moniker gave the platform’s goals more clarity and increased interest in this coin.
An Ethereum Problem Solver
You must first have a basic understanding of Ethereum to grasp Polygon. First, it’s difficult for blockchain engineers to strike a balance between scalability, security, and openness trade-offs.
Ethereum has its problems. Remarkably, the scaling issue with the No. 2 cryptocurrency is evident in the speed at which payments are completed.
Ethereum’s Speed Was Wanting
Speed has been neglected in favor of decentralization and security in Ethereum. Transactions may therefore be cumbersome and costly. That’s where Polygon steps in, with its emphasis on offering Ethereum with lower prices and better transaction times.
Developers can create and manage decentralized applications (dApps), smart contracts, non-fungible tokens (NFTs), and other things on layer one blockchain systems such as Ethereum. A Layer 2 blockchain called Polygon seeks to aid Ethereum’s throughput.
Polygon serves as a Layer-2 protocol rather than trying to mimic Ethereum’s features. Alternatively, it aids in accelerating transaction times and bringing down costs for software engineers.
Presently, Polygon can process transactions at speeds of up to 7,000 TPS, compared to Ethereum’s 14 TPS limit. Everything created on the blockchain is now significantly more efficient and affordable.
Analysts predict Ethereum will soon increase its TPS following its eagerly awaited system update in September 2022. However, Polygon’s cheaper fees should continue to draw developers and support the cryptocurrency’s narrative even after the Merge.
Matic, What Does It Mean?
MATIC is the native cryptocurrency of Polygon. This token was produced on the Ethereum blockchain and is an ERC-20 token. This coin is employed to control, protect, and cover the transaction costs of the Polygon system.
The quantity of MATIC is finite, with only roughly $7.4 billion in circulation, in contrast to specific other cryptos that have a limitless supply. The number of coins in existence will never exceed 10 billion.
Matic And Polygon, What’s The Difference?
It might be surprising, but they’re all the same thing. Although Polygon and Matic are frequently used synonymously, they have distinct characteristics. On the Ethereum network, Polygon is a layer-2 scaling architecture. Its native token, MATIC, powers the ecosystem. Since its inception in 2019, Polygon has gone by the alias Matic Network. Its main product is plasma chains, identical to side chains but offering more security for more complicated processes.
In 2021, the program added side chains and changed its name to Polygon. Despite this, the project decided to stick with MATIC for its native utility crypto coin after rebranding.
The transformation and subsequent rebranding caused significant uncertainty in the cryptocurrency industry because many believed the two components were separate. Polygon, however, is to Matic what Ethereum is to ETH.
The Polygon Layers
To function correctly, Polygon operates on four vital layers, which we will discuss below:
The security layer safeguards the linked Ethereum blockchain, as its name suggests. By delegating its system of validators to permit its authorized blockchain platform, Polygon provides validators as a service, ensuring security. In this situation, Ethereum establishes compromise in a decentralized fashion.
The Ethereum Layer
Data can be sent from Polygon to Ethereum thanks to a series of smart contracts that Polygon has integrated. These smart contracts act as Polygon representations on the Ethereum network, handling transaction completion, transaction objections, and facilitating staking.
The Execution Layer
The Polygon network’s POS consensus protocol is what it does. It interprets payments that have been agreed upon by auditors. Several Polygon technologies are integrated at the execution layer.
The Polygon Layer
A network of interconnected blockchain systems called the Polygon Layer makes up the entire collection. What other blockchains outside Ethereum already enabled can link to the Polygon layer environment is still unknown.
Polygon is a highly advanced and effective system and dApps launch framework. It also serves as a scaling alternative for Ethereum. This initiative receives a lot of attention due to the Ethereum-Polygon connection. It is an ideal platform for the adoption of dApps and multi-chain alternatives.
The valuation of Polygon surged by almost 100% amid a severe bear market because of numerous agreements, including some with significant corporations like Disney and Coca-Cola. Given that MATIC tokens can also be staked, it became clear that this cryptocurrency was particularly appealing to all kinds of investment firms.
Overall, Polygon has a genuine potential of being one of the critical solutions that aid the scalability of Ethereum, as well as a widely supported cryptocurrency that continues to gain popularity. I am honestly undoubtedly eager to see it evolve further.