In the past two years, Polygon, which started out as Matic Network in India in 2017, has experienced significant growth. On January 30, 2020, one MATIC cost Rs.1.22, according to Coinbase. By December 2021, it had climbed to an all-time high of Rs. 220. Although lower than its peak, its current value of Rs. 122 shows an increase of approximately 4000% over the previous year.
A scaling solution called Polygon, originally known as the Matic Network aims to provide numerous ways to increase the speed of transactions on blockchain networks while reducing the cost and complexity.
The main focus of Polygon is Ethereum, a decentralised application platform that enables you to participate in virtual worlds, play games, purchase art, and carry out a number of financial transactions. Ethereum has, however, almost completely lost its value due to the volume of activity on its blockchain, as transmission costs are rising and traffic is becoming congested.
Polygon is another option. As a layer-2 network that complements Ethereum and has no desire to change the original blockchain layer, Polygon advertises itself as such. Similar to its geometric namesake, a polygon has many sides, forms, and uses. It also offers a simpler framework for building linked networks.
In addition to encouraging developers to produce more appealing products, Polygon wants to see Ethereum expand in terms of scale, security, efficiency, and utility.
In 2017, Polygon was founded by Jayanti Kanani, Sandeep Nailwal, and Anurag Arjun. The Binance Group, of which this exchange is a member, guarantees top-notch support.
After the renaming, Polygon preserved its MATIC coin, which powers the network. The payment and settlement unit for users who interact with the network is called MATIC.
The Polygon network’s own cryptocurrency, called MATIC, is used to pay fees as well as for staking and governance (which allows holders of MATIC to vote on changes to Polygon). You may buy and sell MATIC on Coinbase and other exchanges as well.
At an earlier stage of its development, MATIC was delivered to Polygon. According to Decrypt, it first appeared as Matic Network in October 2017 before being renamed Polygon in early 2021.
A group of smart contracts that function on the Ethereum network make up the Ethereum layer. They enable communication between Polygon chains and Ethereum, staking, and transaction finality.
There is a security layer in addition to Ethereum. It serves as “validators-as-a-service,” providing chains with an additional degree of security.
The networks layer is a blockchain network environment created by Polygon. Each has its own community, which is in charge of developing local consensus and generating building bricks.
The execution layer is provided by Polygon’s version of the Ethereum Virtual Machine (EVM) for smart contracts.
Polygon chains can communicate with one another and with the Ethereum main chain thanks to its arbitrary message passing feature. It promotes a variety of novel use cases, including value transfer between platforms and interoperable dApps.
The Working of Polygon MATIC
The MATIC Sidechain from Polygon functions similarly to other Proof-of-Stake blockchains. The structure, token, client nodes, local dapps, validator nodes, and other elements of Ethereum are the same as those of previous networks, with the exception of the fact that exchanges are grouped and settled over the Ethereum mainchain.
Fortunately, Polygon has created a layer-2 network for building blockchain networks that are compatible with Ethereum.
Layer-2 scaling solutions make reference to off-chain scaling options. In order to execute components with evaluation power elsewhere, such as on sidechains, this entails lowering or removing them from the main blockchain. This spreads proficiency testing around the network and improves mainchain speed.
Layer-2 solutions are becoming more and more well-liked as they contribute significantly to the acceptance of cryptographic money.
Developers can send pre-configured blockchain networks with only one click thanks to Polygon’s modular architecture for building distinctive networks. Additionally, Polygon makes it easy for any blockchain to work together with another without any issues.
You might see the MATIC sidechain as a valuable component of Ethereum’s vast ecosystem that offers users widespread project execution and a satisfying user experience. Any Ethereum-based decentralised programme or Ethereum-capable blockchain can be moved to the Matic Sidechain to operate in a far more favourable environment.
Clients must take the following actions in order to connect with decentralised apps built on the MATIC Sidechain:
- Confirm the tokens that will be issued on the MATIC Sidechain as well as the purportedly delivered Predicate Contract on the Ethereum network.
- Upon confirmation of the predicate contract, tokens will be automatically placed on the MATIC Sidechain. The “ChildChainManager” smart contract is triggered by the “RootChainManager” smart contract in this cycle, which generates the necessary number of bolted or stored tokens on the MATIC network.
- Why do Customers who accept their tokens on the MATIC Sidechain have access to quick and affordable network transfers. This means that instead of costing the user hundreds of dollars, a decentralised deal on MATIC to supply or exchange liquidity will cost them pennies.
Follow these steps to send the tokens back to Ethereum:
- The tokens must be burned on the Matic sidechain.
- The Ethereum mainchain must get the verification of this burned exchange.
Features of Polygon
- Availability: Transactions on Polygon sidechains are swift, inexpensive, and secure, with finality on the mainchain and Ethereum serving as the first practical Layer 1 foundation chain.
- High throughput: It was able to achieve up to 7,000 TPS on a single sidechain on the internal testnet. In order to scale horizontally, several chains will be made.
- Customer experience: WalletConnect support, native mobile apps and SDK, developer abstraction from mainchain to Polygon chain, and customer experience.
- Security: In the PoS system, stakers are also operators of polygon chains.
- Public sidechains: Unlike private dApp chains, Matic sidechains can support a wide range of protocols and are available to everyone.
Advantages of Polygon
- Polygon, one of the most intriguing blockchain projects, focuses on interoperability and scale, two of the most frequently mentioned issues with the technology. The network has already surpassed its initial goal for Matic by giving developers a comprehensive set of tools to create high-performance, high-scaling blockchain protocols and decentralised applications (dApps).
- The Ethereum Virtual Machine (EVM), the blockchain-based infrastructure that enables developers to create decentralised apps (dApps), is fully supported by Polygon, the first scaling solution. Since Solidity, an object-oriented programming language, is already used to create smart contracts, this makes Polygon accessible and straightforward to the Ethereum community. As a result, while still preserving their high level of security, dApps developed on the Polygon network will benefit from Ethereum’s network effect.
- Another feature that sets Polygon apart is that its security system is optional, allowing blockchains to continue operating independently. As a result, linked blockchains can have full interoperability with the Ethereum mainchain without employing Polygon’s security-as-a-service strategy.
- Developers who wish to design completely interoperable dApps that benefit from several linked blockchains must have Polygon’s versatility.
- The network can be future-proofed by Polygon’s comprehensive approach to scaling solutions in the current era of rapid technological innovation. Due to the variety of scaling strategies it offers, polygon does not run the risk of becoming obsolete. By doing this, they are protected from being out of date in the event that one solution later becomes the norm in the sector.
The price movement of MATIC, which increased during two major falls in the cryptocurrency market this year, illustrates the significance of Polygon’s scaling solutions.
The rest of the cryptocurrency market was negatively impacted by the price decline of Bitcoin, but MATIC saw a 120% increase in May. This is because several DeFi protocols moved to Polygon’s Ethereum sidechain to avoid high petrol prices, which, according to IntoTheBlock analysis, increased by more than 845% on Ethereum in a year.
The race to develop the first interoperability solution that is fully operational has begun.
The Plasma scaling solution and Polygon’s proof-of-stake chain are now operational, but until these features are made public, developers won’t be able to create their own independent or shared security chains. Plasma is the only scaling option because neither ZK-rollups nor optimistic rollups have been used on the network.