In 2021, we are watching a rapid increase of fees on the Ethereum network.
The reason for that was the inability of the blockchain to process a large amount of transactions. And that became a problem for users. To solve it, many developers began to transfer their applications to Layer 2 solutions, which help to increase throughput, and, consequently, to reduce fees. One of these solutions is the Polygon project (before 2021 — Matic Network), which we will talk about in this article.
So, Polygon is a Layer 2 solution for the Ethereum blockchain, or as it is also called by developers — the Internet of Blockchains.
Layer 2 (L2) solutions are projects deployed on top of the basic blockchains.
In simple terms: projects that are transferred to Polygon remain in the Ethereum ecosystem, but they are not affected by the problems of network overload and high fees.
How does it work?
The main component is the Polygon SDK. It is a modular, flexible framework that supports creating and connecting two main types of solutions:
- Secure chains (Plasma Chains) are Layer 2 chains that were created to solve scaling problems. They rely on Ethereum to ensure security instead of creating their own pool of validators. In addition to the Plasma Chain, it is also possible to create other basic Layer 2 solutions, such as: Optimistic Rollups, ZK rollup chains, independently operating chains (blockchains), or any other elements of the network infrastructure required by the developer. This solution is suitable for applications that require a high level of security, and also for young projects that are unable to create a sufficiently decentralized and secure pool of validators.
- Autonomous chains (side-chains) are Ethereum side-chains with their own pool of validators (and this means they are fully responsible for their security). Such chains offer a high level of independence and flexibility with a lower level of decentralization and security. At the same time, they can be configured so that they partially inherit security from Ethereum. A prime example of such a chain is the Matic POS Chain, which uses Ethereum to determine validator rates and periodic finality checkpoints. Such chains are suitable for projects that do not require a high level of security, and projects that are able to create a sufficiently decentralized and secure pool of validators.
All transactions in Polygon are confirmed by validators for a small reward at a lower energy consumption, which allows not overloading the main network.
Moreover, to improve the developer experience and to provide a better support, as well as to expand the functionality and capabilities, the Polygon SDK will offer support solutions and products, such as:
· Inter-network messaging protocols and modules;
· Data availability services;
· General security services;
· Adapters for external blockchain networks;
· Application-specific modules;
· Enterprise modules and products;
· Premium products and solutions.
It is also worth mentioning about the high performance provided by the use of the Polygon platform. In a single side-chain, with a block confirmation time of two seconds, Polygon provides up to 7000 transactions per second. This speed allows you to make payments faster and more reliably than through the centralized banking systems that are familiar to most: Visa, Mastercard, and so on.
As mentioned earlier, in 2021 there was a rebranding, which gave to the project name Polygon. At the same time, the internal token retained the name Matic. Let’s also talk a little bit about the coin itself. To date, not all issued Matic tokens are circulating, as their issue is carried out in stages. The schedule of their release is calculated until December 2022.
Key figures for June 1'st 2021:
- the price is 1.8 US dollars (compared to 2019, it has increased 110 times)
- rating: #15
- the market capitalization is estimated at approximately 11–12 billion US dollars with a daily trading volume of about 4.7 billion USD.
- about 1.5 million people have been created accounts
- more than 84 million transactions are conducted per day
- more than 50 digital assets have been issued on the basis of its own POS blockchain, including MATIC, Tether USD (USD), USD Cad (USD), Quickswap (QUICK), Dai Stablecoin (DAI), and Chain Games (CHAIN).
The most popular exchanges where you will find MATIC:
- Coinbase Pro
- Huobi Global
Kind reminder: if you have long-term investments, then it is better to store tokens on a crypto-wallet. MATIC can be stored on any Ethereum wallet, including Eidoo and Metamask, as it is a token of the ERC-20 standard.
In the near future, the Stake Service plans to become a validator in the main Polygon network. We will post a separate article for all Matic token hodlers with a manual about how to stake coins on our validator. Stay tuned.
Most likely, reading this article, you thought, what is the difference between Polygon and other projects that offer a similar solution to the scalability problem (for example, Polkadot or Cosmos)?
We have an answer for you. Polygon has 3 primary differences:
1. Polygon is an integral part of the Ethereum ecosystem and can use its network effects. Polkadot or Cosmos are competing systems that were created from scratch.
2. Polygon is more secure because, again, it uses Ethereum, which is considered the most secure and proven blockchain.
3. Polygon is more open and powerful, it can include any scaling solution or infrastructure from the Ethereum ecosystem.
What is next?
The popularity of the project is certainly growing. There are many projects based on the platform, including Polymarket,Aave, Aavegotchi, Decentral Games, Sports, Easy fi, Neon District, and others. The development of Polygon brings us closer to the transition to Ethereum 2.0.
Against the background of the development of the popularity and growing demand of the project, it is necessary to say about the recent integration of Polygon and Google BigQuery.
Google BigQuery makes it easy to query data in a chain in a simple and organized way in the cloud using standard SQL syntax. This means that you can query Polygon datasets, perform analytics, and extract useful information using the Google BigQuery platform. For example, you can track gas costs over time, or track calls and smart contract activity, perform multi-channel analysis for the Polygon SDK, and so on. This integration increases the availability and positioning of Polygon, as well as increases the popularity of the project.
In conclusion, Polygon (Matic) is a successful project located in the Ethereum ecosystem, which increases the capabilities of the Ethereum network, and thereby affects the growth of the popularity of the ETH cryptocurrency, as well as the entire digital asset industry as a whole. The solutions that Polygon offers are necessary to solve pressing issues, and in the future we can only expect the continuation of the successful development of the project.
Previously on Polygon (Matic):
Announcing Polygon SDK: The Gateway to Multi-Chain Ethereum!
Beloved Polygon family and dear crypto community, today we are proud to announce Polygon SDK, a big milestone for…