What is Polygon (MATIC)? | CoinCodex

Let’s dive into the realms of Polygon, Layer 2 scaling solution. This text focuses on unveiling the project’s evolution and provides a general understanding of what is MATIC crypto.

Recognized as Matic Network, it strides purposefully to boost Ethereum’s efficiency, promising accelerated transaction speed and diminished gas fees as its value proposition. The network’s currency is a linchpin functioning within Polygon’s PoS model, empowering users to both fortify the network’s integrity and benefit from their participation.

Now we will explore the Polygon network, dissecting its basic functionality and inherent pluses. 

What is MATIC’s current price?

At the moment of writing, the price is $0.88, or €0.82. This is considerably lower than the all-time high, reached in December 2021. Back then, the price equaled $2.92. Talking about the all-time low, Polygon faced it in 2019, when the price dropped to a staggering $0.003. According to CoinCodex’s price graph, MATIC showed slight growth last month.

MATIC is available for purchase on most cryptocurrency exchanges, including the famous ones. Nevertheless, it is important to pick the trusted service that allows you to safely and privately buy crypto. SimpleSwap can fulfill these needs, offering instant Polygon swap with no need to register. 1500+ assets including MATIC, BTC, ETH, ADA and more popular and rare coins, cross-chain exchanges, 24/7 support and user-friendly interface can play a pivotal role in selecting a reliable platform to buy or sell crypto you need.   

How does Polygon work?

Ethereum’s limited transaction capacity and escalating gas fees, sometimes exceeding $50 to $80, pose significant challenges for users. This congestion also hampers Ethereum’s processing speed.

Polygon addresses these issues by leveraging side chains and different protocols. Its side chains deliver a lightweight and secure alternative to Ethereum. The PoS bridge and ZK-rollups provide additional flexibility. Thus, it gives users a chance to choose a suitable scaling option for their needs.

Polygon’s bridge, integrated due to high developer demand, enables seamless DApp creation without sacrificing cross-platform advantages. Polygon additionally lightens the load on Ethereum, enhancing speed.

Why Use MATIC?

The native token boasts several distinctive features, each contributing to the token’s significance within the blockchain landscape:

• PoS: Token holders can actively participate in securing the network, thereby being rewarded for it.
• Transaction Fee Utility: tokens serve as the currency for transaction fees on the MATIC network. This utility provides the token with a foundational value.
• Deflationary Supply: With a capped total supply of 10B tokens, the token operates on a deflationary model. The protocol is designed to decrease the total supply progressively. This intentional scarcity may enhance the value of the left tokens.
• Interoperability: it integrates with the Ethereum network. This compatibility allows users to store MATIC in any wallet supporting ERC-20 tokens. The interoperability factor further enhances the token’s user-friendly nature and widens its adoption potential.

Polygon transaction speed

The blockchain achieves an impressive feat in transaction processing capability. Polygon transactions per second (TPS) result equals 65,000. Notably, its efficiency is underscored by its swift confirmation time, taking about 2 seconds to confirm a block. 

Polygon technology

The team aims to enhance the scalability and interoperability of decentralized applications. They achieve this by utilizing sidechains, which are separate blockchains connected to the main Ethereum blockchain. It allows for faster and more cost-effective transactions while keeping up compatibility with Ethereum’s ecosystem. 

Are MATIC and Polygon the same thing?

These two are key components of the blockchain realm. MATIC is the utility token, serving diverse functions that we have already mentioned before. Polygon works as a Layer 2 scaling solution tailored for Ethereum. It operates as a framework for constructing and interlinking blockchain networks that are compatible with Ethereum.

Simply said, MATIC acts as the driving force behind the Polygon network, functioning as a crypto, while Polygon itself serves as an infrastructure, offering scalability enhancements for Ethereum.

The Basis of Polygon

Polygon plasma chains operate on PoS. Tokens serve as the currency for all transactions within these chains. Therefore, the increased adoption of Polygon as a scaling solution by various projects directly amplifies the demand for networks’ tokens.

The Polygon Founders

The company was created in 2017 by Indian developers: Jaynti Kanani and Sandeep Nailwal. These are the people who have a direct connection to Polygon blockchain birth.

Polygon (MATIC) and L2

So, is Polygon layer 1 or 2? It is an L2. It’s a term for all blockchain scaling solutions designed to ease transactional burdens from the main network. Special attention to this concept is given to Ethereum.

The Ethereum ecosystem is divided into several smaller subsections aimed at improving various aspects of the blockchain. One such section is called Plasma: it constructs a network of blockchains under Ethereum, forming a tree-like structure. Polygon is a recognized leader among the projects within this framework.

Polygon (MATIC) vs. Ethereum Layer 1

Layer 2 and layer 1 scaling solutions might look alike at first glance. In essence, layer 1 is the foundational blockchain architecture, while layer 2 operates as an overlaying network above the base blockchain. These external protocols enhance speed and efficiency by interacting with the base blockchain. Platforms like Polygon illustrate layer 2 solutions, making existing Ethereum-based protocols faster and more cost-effective.

The Polygon blockchain stands out with a high level of functional compatibility and enables interaction both among themselves and with the Ethereum network. This feature has sparked significant interest from developers who were fighting the high gas prices.

Doesn’t Ethereum 2.0 kill the need for Polygon

Functioning as a Layer 2 protocol, Polygon doesn’t seek to replicate Ethereum’s functionality. Instead, its goal is to enhance transaction speeds and reduce costs for developers. Picture it as an express train running alongside a local train, moving swiftly with fewer stops.

What makes Polygon so special

This article aims to give a basic understanding of the network, tell what is Polygon crypto, and describe its performance. To conclude the above said, this project is an ambitious concept of well-experienced specialists, continuing to develop L2 solutions for the crypto sphere and Ethereum in particular. However, it is important to understand that before purchasing any cryptocurrency, you should do your own research. Make wise investment decisions and stay safe.