Polygon network aims to address the scalability challenges faced by the Ethereum blockchain. With the rapid adoption of Ethereum and the lack of infrastructure to support the increasing demand and frequency of transactions, the Ethereum network can become overwhelmed, leading to usability issues. This includes high transaction fees, slow execution speed, frequent transaction failures, and an overall poor user experience.

Polygon network offers a collection of Layer-2 scaling solutions for the Ethereum blockchain, along with a cross-chain infrastructure, to enhance the user experience. It simplifies the development process of Ethereum applications and provides improved scalability. The solutions provided by Polygon network are designed to maintain decentralization, ensure security, and promote the widespread adoption of Ethereum blockchain technology.

Polygon Blockchain Creation

Polygon was created by a team consisting of Sandeep Nailwal, Jainti Kanani, Mihailo Bjeli, and Anurag Arjun. They launched the first Matic test network in October 2017, aiming to address scalability challenges on the Ethereum blockchain. As interest in the network grew, the team conducted an IEO on Binance launchpad in April 2019, raising $5.6 million. The mainnet for the Matic network, now known as Polygon, was launched in Q2 2020.

Key Features of Polygon Network:

Layer-2 scaling solutions: Polygon network offers various scaling solutions that operate on top of the Ethereum blockchain, providing increased throughput and scalability.

Cross-chain interoperability: The network enables seamless interaction and communication between different blockchains, facilitating the transfer of assets and data across chains.

Enhanced user experience: By alleviating congestion and reducing transaction costs, Polygon network enhances the overall user experience, making transactions faster, cheaper, and more reliable. Developer-friendly infrastructure: Polygon provides developers with tools, libraries, and frameworks to simplify the development process of decentralized applications (dApps) on the Ethereum blockchain.

Decentralization and security: Despite the scalability improvements, Polygon network ensures the preservation of decentralization and security, maintaining the core principles of blockchain technology.

MATIC token represent what?

Following its rebranding, Polygon kept its native token known as MATIC, which serves as the foundation of the network. MATIC is utilized as a medium of exchange and settlement between participants engaging within the network. Being an ERC-20 token, it is seamlessly integrated into the Ethereum ecosystem and is compatible with other Ethereum-based digital currencies. The token holds various essential purposes, including "gas" payments, network security, and governance.

MATIC is widely regarded as the lifeblood of Polygon chains, fueling the protocol through a gas-based mechanism. Whenever a transaction is conducted on the network or a Polygon application is utilized, users are required to pay a fee in MATIC to access the network's services. This fee serves as an incentive for miners to process and validate the requested actions. Moreover, software developers and contributors to the ecosystem can leverage MATIC tokens to build decentralized applications (dApps) on Polygon by paying for the platform's usage and development framework.

Furthermore, the MATIC token plays a crucial role in network security. Polygon implements a proof-of-stake mechanism, and participants can utilize MATIC to secure the network and earn rewards by staking their tokens. In this context, the risk of losing MATIC acts as a deterrent against potential attacks.

MATIC serves a governance function. Token holders possess special privileges on the protocol, enabling them to actively participate in network governance through voting on Polygon Improvement Proposals.

Currently, the maximum supply of MATIC tokens is capped at 10 billion, with nearly 80% of the tokens already in circulation.

How does Polygon and MATIC derive their worth?

The value of Polygon and MATIC can be evaluated and measured in various ways, depending on individual perspectives and considerations. Here are some key aspects to understand their value:

Market Dynamics: As a publicly traded asset, the value of MATIC is determined by market forces and investor sentiment. The buying and selling activities of participants in public markets influence the price of MATIC, resulting in fluctuations that reflect market perceptions and expectations.

Utility within Polygon Network: The underlying value of MATIC is often tied to the utility and functionality it provides within the Polygon network. Polygon aims to enhance transaction efficiency and reduce costs on the widely used layer-1 blockchain network, Ethereum. By facilitating faster and cheaper transactions through its side chains and proof-of-stake architecture, Polygon offers tangible value to users and developers in the decentralized finance (DeFi) space.

Transaction Fees and Throughput: Polygon charges transaction fees on its network, albeit at a significantly lower rate compared to Ethereum. The ability to process a high volume of transactions per second contributes to the value proposition of Polygon. The scalability and efficiency provided by Polygon's infrastructure attract users and businesses seeking cost-effective and fast transaction capabilities.

Interoperability and Blockchain Framework: Polygon's innovative approach of creating an interconnected ecosystem of blockchains has wider implications beyond Ethereum. Its ability to foster interoperability and enable developers to build their own blockchains using the Polygon framework creates value for the broader blockchain community. This framework offers opportunities for scalability and customization, making it an attractive option for those seeking to create their own blockchain solutions.

What is the objective of Polygon?

Polygon has a clear mission to address the scalability limitations of the Ethereum blockchain and empower developers to create user-friendly decentralized applications (dApps) with enhanced scalability, low transaction fees, and robust security. As a decentralized Ethereum scaling platform, Polygon serves as a layer-2 solution that complements and improves upon the existing Ethereum network.

By leveraging the Ethereum blockchain, Polygon facilitates seamless connectivity among various Ethereum-based projects. It aims to provide a scalable solution that mitigates the challenges of speed and cost associated with Ethereum, while ensuring compatibility with the Ethereum ecosystem.

Polygon's mission encompasses supporting and expanding the Ethereum network by offering increased flexibility, scalability, and sovereignty to blockchain projects. It enables developers to harness the benefits of Ethereum's security, interoperability, and structural advantages, while unlocking new possibilities for scaling and enhancing the user experience of dApps.

Polygon PoS Chain

Polygon's PoS chain, also known as a sidechain, is a parallel blockchain to Ethereum and is highly regarded within the Polygon network. It boasts a remarkable transaction processing capacity of approximately 7,000 transactions per second, with transaction costs as low as one cent. The PoS chain supports various activities such as the development of decentralized applications (DeFi and other Utilities), NFT minting, and all functionalities available on the Ethereum blockchain.

Being EVM compatible, decentralized applications originally created for the Ethereum blockchain can be seamlessly deployed on the PoS chain without necessitating any modifications to the existing code. Moreover, Polygon's PoS chain is designed to establish interoperability with the Ethereum blockchain, standalone chains, and Layer-2 networks, allowing assets to be bridged from the PoS chain to any of these networks.

By offering improved speed, efficiency, and significantly reduced transaction fees, the PoS chain provides a trade-off in terms of security for projects built upon it. However, this trade-off has not hindered its adoption, as evidenced by the creation of over 130 million unique wallets on the PoS chain and the execution of more than 1.3 billion transactions to date.

Currently, the PoS chain hosts more than 150 DeFi projects, a substantial portion of which are also active on other blockchain platforms. Prominent projects like Uniswap, originally built on the Ethereum blockchain, have expanded their operations to include the Polygon network. Notable migrations to the Polygon network also include 1inch Network and SushiSwap. As a testament to its prominence, Polygon ranks as the fourth largest blockchain in terms of Total Value Locked (TVL) on DeFi platforms.

Polygon Plasma Chain

The Plasma chain, often discussed alongside the PoS chain, is a distinct component of Polygon with unique characteristics. While it shares its foundation with the Ethereum blockchain, the Plasma chain stands out for its heightened security. Unlike Secure networks, the Plasma chain employs its own consensus mechanism, but relies on the Ethereum blockchain for block validation.

Polygon's zkEVM,

It is also known as HERMEZ, is a layer-2 scaling solution designed to enhance Ethereum's scalability while maintaining its high-level security. It leverages the Zero-knowledge Rollup protocol (ZK-Rollup) to accelerate smart-contract transactions and reduce transaction costs. By validating and executing multiple transactions simultaneously, zkEVM simplifies and streamlines the transaction validation process, resulting in lower costs. Developers can seamlessly migrate their Ethereum projects or build new applications on Polygon's zkEVM without the need for code modifications or learning new programming languages. Currently, the zkEVM is undergoing public testing and will be launched upon completion.

Framework of the Polygon Network

Developers utilizing the Polygon network have the flexibility to select and seamlessly switch between a variety of scaling solutions tailored to their specific project needs. The architecture of the Polygon network provides a framework for the smooth operation of applications and blockchains built on Polygon.

Polygon Networks Layer:

The layer of Polygon Networks serves as the foundation for applications and blockchains built on Polygon. It comprises a series of autonomous blockchain networks that handle the creation of transaction blocks, transaction sorting, and the consensus algorithm specific to each application or blockchain.

The security layer

This layer of Polygon operates on the "Validator-as-a-service" model. It enables blockchains and applications on Polygon to leverage the security capabilities provided by the Ethereum blockchain. By utilizing the security layer, Polygon-based applications can engage Ethereum blockchain miners as validators, offering them predetermined rewards in exchange for their services.

The execution Layer:

It plays a crucial role in verifying and processing transactions within the Polygon blockchain and other blockchains operating on the Polygon network. This layer ensures the completion and validation of your transactions on Polygon. The additional layers primarily cater to Secure networks that rely on the Ethereum blockchain for enhanced security and transaction finalization. These layers encompass:

The Ethereum Layer

It serves as a fundamental component for blockchains and applications operating on the Polygon network. It enables the validation, finalization, and exchange of data between the Ethereum and Polygon blockchains. This layer acts as a bridge connecting Polygon-based applications, particularly secure networks, to the Ethereum blockchain for transaction validation and other essential functionalities.

How does Polygon enhance Ethereum?

Polygon brings significant advantages to the Ethereum network by addressing its limitations and enhancing its functionality. Instead of burdening Ethereum with heavy transaction loads, Polygon implements scaling solutions that improve transaction processing. This not only relieves Ethereum of strain but also reduces gas fees, making it more accessible to users.

Furthermore, Polygon serves as a platform for launching interoperable blockchains. Developers can customize attributes and modules for their specific blockchains, fostering diversity and encouraging more developers to work in an EVM-compatible environment. This enriches the Ethereum ecosystem and promotes innovation at an affordable cost.

Leading Initiatives on Polygon

Polygon, known for its versatility, is not only a hub for top DeFi dApps but has also emerged as the second-largest gaming platform for Web3 games. The establishment of Polygon Studios in July 2021 contributed to its rise in the gaming sector. Let's take a brief look at some of the prominent dApps on the network to showcase its capabilities.

AAVE: This leading DeFi protocol, with a Total Value Locked (TVL) of $342.72 million according to DeFi Llama, can be found on Polygon.

Aavegotchi: Launched by AAVE, this project features NFTs of ghosts residing in the Gotchiverse. Aavegotchis can be summoned or obtained from the Aavegotchi bazaar.

Uniswap V3: As the top decentralized exchange in the crypto space, Uniswap V3 has gained popularity on Polygon since December 2021. Its trading volume on the Polygon network is around $38 million, compared to $99.88 million across all networks, according to CoinMarketCap.

OpenSea: The leading NFT marketplace has established its presence on the Polygon network, offering traders the advantage of low gas fees and fast transaction speeds.

Decentraland: Known for popularizing the concept of the "Metaverse," Decentraland has also expanded its footprint on Polygon.

Conclusion:

Polygon has transformed from a Plasma chain project into a comprehensive system of efficient scaling solutions. These solutions offer significant enhancements to Ethereum's technology, providing a more efficient platform and cost-effective alternatives for new and existing projects. With ongoing developments and optimizations, Polygon is positioning itself as a leading force in Ethereum and blockchain adoption.