Why Is Polygon Adoption Increasing?
Polygon is a new web browser for smartphones poised to revolutionize how we use Ethereum. The network has already garnered significant attention, with major companies like Nike, Reddit, and Starbucks adopting the blockchain. So, what makes it so special? Let me provide a detailed overview.
The Rise Of Polygon Network
Polygon is a new Ethereum-based network developed by some of the creators behind Ethereum, the second-largest cryptocurrency in history. Its primary aim is to enhance Ethereum’s speed and reduce costs, making it more user-friendly.
Previously known as the MATIC network, it rebranded to Polygon in February 2021. Currently, MATIC is an ERC20 token on the Ethereum blockchain, serving as Polygon’s native token.
Polygon’s growth has been fueled by significant investments and collaborations. For example, its partnership with M-Setu, a consulting wing of Infosys Limited, will enable Infosys to offer emerging technology services to its clients. M-Setu will also serve as an open-source bridge for brands to operate across the Ethereum blockchain.
On May 25, 2021, billionaire crypto investor Mark Cuban announced his investment in Polygon, a detail still visible on the Mark Cuban company’s portfolio. Cuban highlighted Polygon’s high transactions per second (TPS) rate as a key factor in reducing transaction costs for users. Three days later, on May 28, Polygon made a significant announcement: it would integrate its asset into Google Cloud’s BigQuery. This integration would enable BigQuery users to adopt Polygon, enhancing its flexibility and strengthening its brand positioning.
What is the Hype all About?
Recently, Polygon has generated significant hype as a potential game-changer in the world of dApps. It is considered the first Ethereum 2.0 network offering increased flexibility and accessibility. Polygon promises to be faster and cheaper than Ethereum, with transaction costs potentially as low as $1.
The network utilizes a technology called C++ Scala, which allows developers to write code once and compile it into multiple languages such as Java or JavaScript. This code can then run on any computer system with an internet connection, and sometimes even without one.
Polygon’s recent high-profile collaborations have further fueled the excitement in the blockchain community. Notable partnerships include Nike and Starbucks. Additionally, in January 2022, Ryan Wyatt, the head of gaming at YouTube, joined Polygon Studios as its new CEO. The buzz increased when Meta partnered with Polygon to enable creators to mint and sell Polygon NFTs (Non-Fungible Tokens) on Instagram.
In addition, Polygon, which once struggled to raise funds, has recently attracted significant interest from venture capitalists due to its innovative technology. In February 2022, it raised $450m from Sequoia Capital, India through a private sale of its native token, MATIC. This funding is intended to expand its scaling solutions and enhance its operations.
Polygon vs Ethereum: What is the difference?
While the Polygon Network aims to be faster and cheaper than Ethereum, it also offers several advantages over Ethereum itself. As an open-source project, Polygon allows anyone to contribute code or provide feedback to improve the network. The developers are not merely going through the motions; they genuinely seek to involve users, whether they use Polygon in their daily lives or simply appreciate its vision in the development process. This approach helps ensure that the network evolves in a way that meets the needs and preferences of its community.
Polygon differs from cryptocurrencies like Bitcoin or Litecoin in its consensus mechanism. Instead of using Proof-of-Work (PoW), Polygon employs Delegated Proof-of-Stake (DPoS). In DPoS, anyone holding at least 10% of the network’s tokens can vote on who becomes a block producer or validator. The more coins you hold, the greater your chance of being selected as a block producer during the PoS voting rounds. If selected, you receive transaction fees as rewards. This system gives block producers more control over the network and offers a more direct incentive than other cryptocurrencies, which often reward miners for solving complex puzzles.
However, unlike Ethereum, which is more private and secure, Polygon is more centralized. This centralization enhances its scalability but at the cost of reduced security compared to Ethereum’s layer-1 blockchain. While Polygon is not unsafe, it does not offer the same level of security as Ethereum.
Conclusion
Many people find Ethereum and blockchain technology confusing, but Polygon offers a more accessible entry point into the world of blockchain. The company is advancing rapidly and has introduced new products designed to make blockchain transactions faster and more efficient. This progress means that anyone interested in cryptocurrency will have a compelling reason to use Polygon as their preferred platform for quick and hassle-free transactions.
