Blockchain Development company
Summarize
Polygon (formerly Matic Network) is an infrastructure solution designed for scaling. Polygon’s technology transfers Ethereum DApps to a connected blockchain system (such as in), thereby preserving the security and ecosystem benefits of the Ethereum network. Polygon’s success is built on network partnerships, increased adoption of high profile projects, and high availability for both traditional and DEX.
Launched in 2017, Polygon (formerly Matic Network) is an infrastructure solution designed for scale. Polygon is trading at $0.849 per token, with a circulating supply of $5.188 billion and a total market cap of $4.43 billion.
What is a Polygon (Matic Network)?
In terms of development and adoption of decentralized applications(), nothing has been more successful than Ethereum(). But despite its relative success, Bridge Smart Contract Development Services the Ethereum network still suffers from several major bottlenecks that hinder its scalability and usability.
Ethereum scaling problem
While Ethereum does run faster than other products like Bitcoin(), its total transactions per second (TPS) is still low at around 15. This is a major problem that often morphs into other problems. For example, when hype drives a massive adoption of projects built on Ethereum, the entire network may slow down and prices may surge.
To continue scaling, many projects are exploring Ethereum-compatible blockchains to alleviate Ethereum’s limitations without leaving the network. A key issue is that there is no dedicated framework for building such blockchains, nor a protocol that can connect them. This leads to a complex development process and brings the risk of ecosystem fragmentation.
Source: Polygon Whitepaper
How does Polygon (MATIC) work?
Polygon (MATIC) is a supporting Layer 2 solution designed to facilitate the adoption of large-scale blockchain projects by offering sidechains with 65,000 TPS and two-second block confirmation times. Polygon’s technology moves Ethereum DApps onto connected blockchain systems (such as in), preserving the security and ecosystem benefits of the Ethereum network.
In addition to scalability, Polygon aims to improve the developer experience with a permissionless design, Cross chain bridge development complete technical sovereignty, and modular security solutions. Regular users can also benefit from low gas and instant transactions, as well as integration with Ethereum tools such as .
Benefits of Polygon (MATIC)
Polygon blockchains are highly interoperable and can communicate between them and with the Ethereum network. The solution’s technology stack consists of two main types of blockchain networks: Secure Chains and Independent Chains.
1. safety chain
A security chain is a network that uses a “Security as a Service” model rather than its own validator pool. This service is provided through the Ethereum network itself or by a shared pool of professional validators (as in Polkadot’s “shared security” implementation). Security chains provide greater security at the expense of independence and agility.
So far, Secure Chain has been implemented through Matic Plasma, a framework based on a proposal by the co-founder of Ethereum. The framework allows simple execution of scalable autonomous smart contracts on the Ethereum Virtual Machine (EVM), but imposes a 7-day withdrawal period on all tokens withdrawn from the Matic network.
2. Independent chain
Independent chains are fully sovereign networks with independent validator pools. These chains offer greater independence and agility at the cost of hard-to-establish security. So far, this has been achieved through the Matic PoS chain. A key difference is that Matic PoS offers faster withdrawals to better serve decentralized finance() and marketplace applications.
Polygon’s native token, MATIC, is used to pay for services running on its network, settle rs in the transaction ecosystem between uses, and transaction fees on Polygon’s sidechain.
What do polygons do?
The fast and low-fee nature of the Polygon ecosystem has attracted great interest from developers who have suffered from Ethereum’s periodically high gas fees. In particular, Polygon has been adopted by many decentralized exchanges (DEX).
What is Polymarket?
One of the most successful DApps based on Polygon technology is Polymarket. This non-custodial and decentralization allows users to speculate on the outcome of real-world events, such as elections or football matches.
To place a bet on an event on Polymarket, users wager tokens on a counterparty’s binary outcome (“yes” or “no”) on the Ethereum blockchain. To do this, users buy “outcome shares” (always between $0.01 and $1) priced based on market expectations for any given outcome. If users bet on the correct outcome, the shares they buy will be cashed out at $1 per share. If users bet on the wrong outcome, their stake will be worthless.
Source: Polymarket Homepage
As with many DEX applications, processing large volumes of transactions while avoiding congestion on the Ethereum network is a constant concern for Polymarket. By building on the Polygon sidechain, prediction markets successfully provide users with lower fees and faster settlements without compromising security or decentralization.
Polygons and Aave
Polygon has also partnered with the leading DeFi protocol for lending and borrowing on the Ethereum blockchain to address congestion due to increasing adoption. CEO and founder Stani Kulechov noted that the protocol’s availability is still largely limited to users with five-figure portfolios.
Aave is looking to expand accessibility by offering lower gas fees through a smart contract bridge that will allow users to seamlessly transfer assets to the Polygon sidechain. According to the Aave team, Build a cross chain bridge Polygon was chosen for its security and modularity, which allows for a high degree of interoperability with other DApps that integrate with Aave.
What is Aavegotchi?
Another area of adoption is crypto collectible games such as Aavegotchi, which integrates DeFi and non-fungible tokens in a unique way. The game allows users to use their avatars (Aavegotchis), which are evaluated based on factors such as attributes, collateral, wearables, and rarity, and use interest-generating tokens in the game’s metaworld.
Players interact by participating in mini-games, governance events, and community gatherings. Much like other crypto metaverses, Aavegotchi also features an integrated NFT marketplace where users can buy, sell, and trade collectibles.
In addition to speculative value, Aavegotchi NFTs are backed by “real” financial value. The game’s staking mechanism generates native “aTokens” that can be converted into tokens such as Tether(), Chainlink(), or AAVE.
Therefore, one of the keys for the Aavegotchi team is to choose options that provide sufficient decentralization, security and. Much like DeFi applications, Aavegotchi notices Polygon’s high degree of interoperability, which it hopes to take advantage of by integrating with other NFT DApps .
Other major players, such as Easyfit (a fork of the), have also deployed them on the Polygon sidechain. These deployments help them improve the user experience and ensure the sustainable operation of the Ethereum network.
Who is behind Polygon?
Polygon was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic. Kanani and other core members of the team made significant contributions to the Ethereum ecosystem prior to joining Polygon. Kanani has experience as a full stack developer and engineer and has been instrumental in the implementation of Ethereum. He currently serves as the CEO of Polygon.
MATIC Price History
Remaining relatively stable in 2020, MATIC has been on an upward trend in 2021. The coin rose from $0.042 on January 28 to $0.849 on April 28, an increase of approximately 1657% in 3 months.
Source: TradingView
Polygon’s success has been built on the network’s partnerships, growing adoption by well-known projects, and high availability in both traditional and DEX.
Conclusion
While Polygon is a leader in scalability solutions, it faces stiff competition from projects such as ,and Skale. Polygon is well-served by its positioning for ethereum interoperability, but it could also limit its market share in case the ethereum network fails.
Another key advantage of Polygon is its success in attracting massive adoption for projects large and small. Over 100 applications are already hosted on the Polygon sidechain, and adoption will only accelerate as larger players are attracted by its modular nature and low fees.
Polygon’s interoperability has been a major selling point for developers, as leveraging the Polygon sidechain allows them to provide value to users through other DApps. This creates an app that attracts apps through interoperability, which in turn creates greater incentives for other apps to join the ecosystem.
Polygon is well-positioned to ride the wave of growth that DeFi, DEX, and NFT DApps are experiencing. As the number increases and more and more Ethereum projects seek low-gas and scalable solutions, Polygon has the potential to expand into an ecosystem worthy of Ethereum itself.
