The crypto golden age ushered an era of changes to the financial world. The beginning is familiar to all of us who are partaken and witness this transition. We remember its early beginning and the introduction of Bitcoin as a project. It grew as a flower that bloomed into a financial digital asset. The evolution wasn’t with one token. It led to a revolution in blockchain with the creation of Ethereum and its wide network. One of the tokens that are contributing to the mass use of cryptocurrency especially in the Ethereum network is MATIC developed by Polygon.
What is Polygon?
Polygon is a blockchain that supports its own cryptocurrency known as MATIC. The main goal of this blockchain was to expand and connect other blockchain systems like Ethereum. Its functions are the same way as Ethereum – it has mechanisms to check proof-of-stake when processing transactions on the blockchain. But, the digital world has even more dynamics than the financial world of the 20th century. Polygon’s initial goal was to ease transactions in Ethereum, but it had to shift its priorities because of the Ethereum network upgrades which made things smoother. Now, this token has adapted to the market and its primary function in blockchain is used on NFTs and Web3 applications.
How does the Polygon Network Work?
As we mentioned before, The Polygon blockchain was used to be compatible with the Ethereum blockchain. It deploys a Layer-2 scaling solution running parallel to the Ethereum blockchain, with a goal to enhance Ethereum’s scalability and efficiency. How it archives that is pretty simple in crypto terms – by using sidechains, which in essence are different blockchains who are responsible for processing of transactions, resulting in reducing the load on the main Ethereum chain.
Proof of Stake (PoS)
Polygon employs a Proof of Stake (PoS) consensus mechanism, where network participants stake their MATIC tokens to validate transactions and secure the network, the same as Ethereum. However, the main difference is that the transaction speeds are faster and the fees are lower to what Ethereum’s (PoW) mechanism used to be.
Plasma Chains
In addition to Proof of Stake, Polygon also adds Plasma Chains, which can be explained as side chains that utilize checkpoints and fraud proofs to enable more security of transactions in the blockchain. Thanks to this technology the transfer of assets between the Ethereum and Polygon networks is made easy, getting the best of both Ethereum’s security and Polygon’s scalability.
The MATIC token
The MATIC token uses ERC-20 which is standard for creating and issuing smart contracts on the Ethereum blockchain. This standardization allows for the seamless integration and interoperability of various tokens within the Ethereum ecosystem. MATIC is the main player in the Polygon network – securing and managing the network with all the fees for each transaction. It has been one of the best performing crypto in recent years.
Polygon creates smooth integration of existing blockchains and makes the creation of custom blockchains tailored to specific needs easier. Not only that, but it acts like a bridge between Ethereum and other blockchain networks, making interoperability and communication easier. Plus, Polygon enhances existing blockchains to connect with Ethereum, doubling their capabilities and expanding the scope of decentralized applications.
Users on Polygon have the freedom to choose from a variety of different protocols. One of those is the Zero-knowledge (zk) Proof mechanism. This innovative technology helps transactions to be verified without disclosing any additional information, making confirmations.
But what makes Polygon better from other Layer 2 solutions is its comprehensive and customizable approach. Blockchain developers can select from a wide range of scaling solutions to maximize and optimize their applications. Also they are getting the benefit from Polygon’s status as an early platform for crypto staking. With that function users can earn annual interest for their role in validating blockchain transactions.
In the end, Polygon’s final goal is to create a tailored Internet of Things (IoT) for the Ethereum blockchain. Thanks to this it scales Ethereum to a billion users without compromising decentralization or security. This project is a testament when a developer thinks about the needs of everyday users, developers, and businesses by providing a flexible yet easy to use solution for the blockchain digital world.
Benefits of Polygon
Polygon has been popular among crypto investors for years, utilizing its strong foundation on the Ethereum blockchain. Its high transaction speed, efficiency, and scalability make it an attractive option for both traders and developers. Also this network has caught the eye of Vitalik Buterin, the creator of Ethereum. He praises its creation and ingenuity.
Its benefits are used in other areas in life other than the financial sector. One of those is in the realm of gambling and crypto casinos. According to some of the best crypto casinos selected by Webopedia.com, Polygon’s benefits really benefit its users when they deposit and withdraw their crypto. Users can have faster transactions and lower fees, which are crucial for a smooth gaming experience and especially winning withdrawals.
Conclusion
While Polygon is highly regarded, potential investors should be aware of its imperfections. As Ethereum transitioned to a Proof of Stake mechanism, Polygon’s original purpose of addressing Ethereum’s congestion has become less relevant. Additionally, its dependence on the Ethereum ecosystem and increasing competition from similar coins and projects are factors to consider. Overall, Polygon is adapting to the current market. With its vision and flexibility we can see this token competing with the other to retake the number three position of the crypto world.
