What Is Polygon (MATIC)? Everything You Need to Know

What Is Polygon (MATIC)?

MATIC (Polygon) is the native utility token of the Polygon network, which serves as a Layer 2 scaling solution for Ethereum. It is essential for network security, paying gas fees, staking, and governance within the Polygon ecosystem.

Key Features of MATIC (Polygon)

A scaling solution for Ethereum

MATIC is a Layer 2 scaling solution built on Ethereum to help reduce congestion and traffic on the Ethereum network. It does this by allowing users to process their transactions off the Ethereum blockchain and on MATIC instead.

Energy efficient with Proof-of-Stake

MATIC uses an energy-efficient algorithm called Proof of Stake to process transactions on its network. This allows MATIC to have faster transaction times and cheaper transaction fees than Ethereum, which currently uses Proof of Work.

Functionality

Polygon provides faster transaction speeds and reduced gas fees compared to Ethereum's mainnet. It supports various infrastructure types, including Optimistic Rollup chains, ZK Rollup chains, and standalone chains.

Founders

The co-founders of Polygon include Jaynti Kanani (CEO), Anurag Arjun (CPO), and Sandeep Nailwal. The project was created in response to Ethereum network congestion issues, highlighted by the popularity of projects like CryptoKitties.

Token Distribution

MATIC tokens are released monthly. The current circulating supply is approximately 9.9 billion tokens, with a maximum supply capped at 10 billion tokens.

Future Plans

Polygon is evolving towards Polygon 2.0, which involves a multi-year transition to the POL token. This aims to organically integrate all layers and networks within the Polygon ecosystem.

How Does Polygon Work?

Key Components of Polygon

Polygon comprises several essential components:

Polygon Network: A series of zk-powered layer-2 blockchain networks on Ethereum, including public and Supernet Chains.
Layered Architecture: Consists of four protocol layers:
- Staking Layer: Manages validators and staking.
- Interop Layer: Facilitates cross-chain communication.
- Execution Layer: Executes smart contracts and produces blocks.
- Proving Layer: Verifies Zero Knowledge (ZK) proofs.
Polygon Bridge: A decentralized tool for moving assets between Ethereum and Polygon networks.

How Polygon Works: Step-by-Step

1. Block Production: In the Polygon PoS chain, blocks are produced by Bor nodes, shuffled by Heimdall validators, and committed to Ethereum as checkpoints.

2. Cross-Chain Communication: Managed by the Interop Layer using Message Queues, secured by Ethereum consensus, enabling safe cross-chain message consumption.

3. Polygon Bridge Mechanism:

Locking Assets: Tokens are locked on Ethereum.
Minting Pegged Tokens: Equivalent tokens are minted on Polygon.
Burning and Unlocking: Pegged tokens are burned on Polygon to unlock original tokens on Ethereum.

4. Decentralization: Achieved through distributed validators, Proof-of-Stake consensus, community governance, and an open-source framework, despite challenges like validator concentration.

User Interaction with Polygon

Using Polygon: Users can access the network via EVM-compatible wallets like MetaMask, switching between Ethereum and Polygon PoS networks to manage assets.

Bridging Assets: Users use the Polygon Bridge or MetaMask Portfolio to transfer assets between Ethereum and Polygon networks.

Use Cases of Polygon

Scenario 1: Scalability Solutions

Scenario Description: Polygon provides layer-2 scaling solutions for Ethereum, enabling fast transactions at near-zero gas fees. This includes Polygon PoS, zkEVM Rollup, and Miden, which are designed for high-performance decentralized applications (DApps).
Challenges: Ethereum's network often faces congestion and high gas fees, limiting its ability to support large-scale applications.
Solutions: Polygon's solutions reduce congestion by offloading transactions to layer-2, significantly lowering gas fees and increasing transaction speed.
Results or Benefits: Users enjoy fast and cost-effective transactions, making Ethereum more accessible for DApp developers and users alike. 🚀

Scenario 2: Interoperability

Scenario Description: Polygon 2.0 aims to enhance interoperability between individual blockchains, allowing them to share liquidity and information seamlessly.
Challenges: Blockchains often operate in silos, which limits collaboration and the flow of assets and data between them.
Solutions: Polygon facilitates cross-chain applications, enabling different blockchains to function as a unified network.
Results or Benefits: This integration promotes a cohesive blockchain ecosystem, enhancing the utility and reach of decentralized applications. 🔗

Scenario 3: Digital Identity

Scenario Description: Polygon ID helps build on-chain, self-sovereign digital identity systems.
Challenges: Traditional identity systems are centralized, posing privacy risks and limiting user control over personal data.
Solutions: By leveraging blockchain, Polygon enables secure and decentralized identity verification.
Results or Benefits: Users gain control over their identities, enhancing privacy and security in digital interactions. 🔐

Scenario 4: Development Tools

Scenario Description: The Polygon Chain Development Kit (CDK) is a modular toolkit for developers to craft specialized ZK proving systems.
Challenges: Developing customized blockchain solutions can be complex and time-consuming.
Solutions: The CDK provides developers with the flexibility to assemble ideal components for their specific needs.
Results or Benefits: Developers can efficiently create tailored blockchain solutions, promoting innovation and adaptability. 🛠️

Scenario 5: ZK Proving Systems

Scenario Description: Polygon Plonky3 is a fast toolkit for building ZK proving systems, leading the industry in modularity and performance.
Challenges: Achieving high-performance, scalable ZK proving systems can be technically challenging.
Solutions: Plonky3 provides the necessary tools to build custom zkVMs and zkEVMs.
Results or Benefits: Developers can achieve unparalleled performance and scalability in their applications. ⚡

Scenario 6: Real-World Applications

Scenario Description: Presto, powered by Polygon CDK and zkEVM, addresses scalability and privacy challenges while enhancing DeFi.
Challenges: DeFi platforms require robust scalability and privacy measures to handle increasing user demands.
Solutions: Presto leverages advanced Polygon technologies to optimize DeFi operations.
Results or Benefits: DeFi platforms become more efficient and secure, attracting more users and investments. 💹

Scenario 7: Ecosystem Building

Scenario Description: Polygon supports a multi-chain Ethereum ecosystem by aggregating scalable solutions.
Challenges: Ensuring compatibility and scalability across diverse blockchain networks can be complex.
Solutions: Polygon facilitates the creation and connection of Ethereum-compatible blockchain networks.
Results or Benefits: A robust multi-chain ecosystem emerges, fostering innovation and collaboration. 🌐

Why Choose Polygon for These Use Cases

Polygon offers comprehensive solutions addressing scalability, interoperability, and security in blockchain networks.
Its flexible and modular tools empower developers to create customized solutions efficiently.
Polygon's advancements support a seamless and secure blockchain ecosystem, making it a preferred choice for developers and businesses. 🏆

Pros of Polygon

Ethereum-enabled Qualities

Polygon leverages the security and decentralization of the Ethereum mainnet, ensuring robust security and finality for its users.

Developer-Friendly

With extensive EVM support, Polygon offers an easy onboarding process for developers, making it a popular choice for building decentralized applications.

Scalability

Polygon utilizes ZK technology to provide high throughput smart contract execution and economic gas fees, making it a scalable solution for blockchain applications.

Interoperability

The networks within Polygon seamlessly share liquidity and information, enabling the development of cross-chain decentralized applications.

Customizability

Through the Polygon CDK, developers can create new interoperable chains within the Polygon ecosystem, allowing for high levels of customization.

High Enterprise Adoption

With major corporations like Starbucks, Nike, Reddit, and Facebook utilizing its network, Polygon demonstrates strong enterprise adoption.

Cons of Polygon

Untested Upgrades

Polygon 2.0 introduces a complete system overhaul, and these upgrades have yet to be fully tested in real-world scenarios.

Competition

Polygon faces significant competition from other Ethereum scaling solutions such as Arbitrum, Optimism, and Starknet, which could impact its growth potential.

Regulatory Uncertainties

The blockchain industry is subject to regulatory changes, and Polygon could face challenges similar to those experienced by other cryptocurrencies like XRP due to regulatory scrutiny.

Is Polygon Right for You?

Polygon offers a high-performance, flexible, and enterprise-friendly blockchain solution, making it suitable for developers and businesses looking to leverage blockchain technology for scalable applications. However, one must consider the potential risks associated with its untested upgrades and regulatory uncertainties. For those willing to navigate these challenges, Polygon presents a robust platform for innovation in the blockchain space.

Pros	Cons
Ethereum-enabled qualities	Untested upgrades
Developer-friendly	Competition
Scalability	Regulatory uncertainties
Interoperability
Customizability
High enterprise adoption

Where to Buy and Sell Polygon (MATIC)?

At the moment, Polygon (MATIC) is not available for purchase or trading on Coins.ph. However, you can still explore a wide range of other cryptocurrencies that we offer, with the same trusted service, high security, and fast transactions you’ve come to rely onWe are always working to expand our offerings, so stay tuned for updates on when MATIC will be available.

How to Buy Crypto on Coins.ph?

Via Coins Pro, BSP Licensed Spot Exchange:

Step 1: Log into your Coins Pro account and click [Balance].
Step 2: Select the currency you want to deposit, click on [Deposit] and enter your desired cash-in amount.
Step 3: Select trading pair and enter the [Order Quantity] you would like to trade.
Step 4: Click Buy or Sell to place your Limit and Stop Orders.
Step 5: Wait for your order to be filled.

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Disclaimer: The information and publications in this article are not intended to be and do not constitute financial advice, investment advice, trading advice, or any other advice or recommendation offered or endorsed by Coins.

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