Polygon Blockchain is an Ethereum layer-2 scaling solution that enables faster and cheaper transactions. It reduces transaction costs and increases transaction speed by combining technologies such as Plasma, Optimistic Rollups, ZK-Rollups, and Validium. Polygon also enables developers to create and deploy their own custom blockchains based on Ethereum.
Polygon can be compared to a subway express train in that it travels the same route as the regular train but makes fewer stops and thus moves much faster. Polygon employs a number of technologies to build this fast parallel blockchain and connect it to the main Ethereum blockchain.
Polygon employs a proof-of-stake consensus mechanism to generate new MATIC and secure the network, which means that staking is one way you can earn money on MATIC you own.
Polygon is a multi-tiered platform that aims to expand Ethereum by utilising a variety of side chains to unclog the main platform in a cost-effective and efficient manner. Sidechains are separate blockchains connected to the main Ethereum blockchain that can support a variety of Decentralized Finance (DeFi) protocols. Polygon can thus be connected to networks such as Polkadot, Cosmos, and Avalanche.
The sidechains are linked to the mainchain and rely on PoS checkpoints to ensure their integrity. When a user starts a transaction, it is sent to the sidechain and verified by a group of validators. The transaction is broadcasted to the mainchain once it has been accepted. This method enables the transaction to be settled quickly, securely, and at a low cost.
These custom blockchains, also known as MATIC Chains, are secured by the Ethereum mainchain and can be used to create decentralized applications (dApps) and tokenized assets. Notably, layer-2-solution can be defined as the security of this type of off-chain solution derived from Mainnet Ethereum. Layer 2 refers to solutions designed to help scale your application by handling transactions off the Ethereum Mainnet (layer 1) while leveraging Mainnet’s robust decentralized security model.
What is MATIC ?
MATIC, a cryptocurrency owned by Polygon, is utilised for governance, staking, and fee payments on the Polygon network (which means that MATIC holders get to vote on changes to Polygon). The term MATIC dates back to a previous phase of Polygon’s growth. Developers changed their name to Polygon early in 2021 after beginning operations as MATIC Network in October 2017.
MATIC Network is a layer-2 scaling solution that makes use of a modified version of Plasma with PoS-based side chains. This enables transactions that are near-instant, low-cost, and scalable. The mainchain maintains its permissionlessness and autonomy while also providing Ethereum’s security guarantees.
Why MATIC is important
MATIC works with the Ethereum Virtual Machine (EVM). Polygon is also simple to use for developers who are familiar with Ethereum. Polygon has a security layer that can be activated or deactivated, allowing sovereign platforms to forego additional security while maintaining their freedom and flexibility.
MATIC tokens can be used to participate in network governance and vote on Polygon Improvement Proposals.
Current Value of Polygon (MATIC)
Polygon’s current price is $0.935154 USD, with a 24-hour trading volume of $236,195,947 USD. Polygon has increased by 2.74% in the last 24 hours. The live market cap of $8,167,934,046 USD. There are 8,734,317,475 MATIC coins in circulation, with a maximum supply of 10,000,000,000 MATIC coins.
Source: https://coingape.com/what-what-is-polygon-blockchain-how-does-matic-works-and-why-it-matters-explained/