What is Polygon MATIC? A Definitive Guide for 2022

Polygon (MATIC) is formerly known as the Matic Network. It is an Ethereum protocol that purposes to create, issue and manage blockchain digital securities. Polygon’s core component is Polygon SDK, a versatile framework that supports building and connecting Secure Chains like Validium, zkRollups, Optimistic Rollups, etc.

It also supports Standalone Chains such as Polygon POS that is built for independence and versatility. Polygon is a scaling solution that aims to provide various tools that reduce cost and improve transaction speed on the blockchain.

Ethereum is home to various decentralized apps where you can play games, join virtual worlds, access a host of financial services, and buy art. These activities mean transmission costs on Ethereum have risen, and the platform’s traffic is clogged.

Polygon is a layer-2 network, which means it’s an add-on layer to Ethereum. However, it does not attempt to alter the original blockchain layer. Polygon has multiple uses and a simple framework for creating interconnected networks.

Polygon’s Beginnings

Polygon was started in 2017 as Matic Network by three Indian nationals Anurag Arjun, Jaynti Kanani, and Sandeep Nailwal, as a scaling solution for blockchains. Mihailo Bjelic later joined them.

Polygon used POS technology and Plasma to remove process transactions off-chain and move them to Ethereum. The hybrid POS-Plasma chain is a committed chain that uses the decentralized power of 90 validators to validate network transactions.

Since Matic rebranded to Polygon, its scope expanded. Polygon has turned Ethereum into a complete multi-system or the Internet of Blockchains

How Polygon Works

The best way to define Polygon’s architectural design is a four-layer system comprising Ethereum, security, Polygon network, and the execution layers. The Ethereum layer is a set of smart contracts implemented on Ethereum.

These contracts include communication, staking, and transaction finality between Ethereum and other Polygon chains. The security layer runs parallel to Ethereum and provides a role that enables chains to benefit from an extra security layer. The Ethereum and security layers are not compulsory.

The mandatory layers are the Polygon networks layer which is a blockchain ecosystem built on Polygon. Each network has a community and handles block production and local consensus. The Execution layer is Polygon’s EVM (Ethereum Virtual Machine) implementation, and it executes smart contracts.

The EVM is a software platform developers use to build decentralized apps. Polygon is EVM compatible, which means the developers can port their created apps to the software. Already, several popular Ethereum apps have been deployed on Polygon, including SushiSwap and Aave.

Any Polygon launched chains can communicate with each other and with the Ethereum main chain. This is made possible by Polygon’s unique message delivery capabilities.  

Polygon caters to developers’ needs via the provision of tools that create scalable dApps. These dApps focus on UX (user experience), security, and performance. Polygon can achieve these three primarily due to its PoS (Proof-of-Stake) Commit Chain architecture and its MoreVP (More Viable Plasma) L2 Scaling solution.

The Polygon PoS blockchain works as a Commit Chain to the ETH mainchain. This has attracted more than 80 Ethereum dApps to the platform with zero network congestion with Ethereum and other PoW (Proof-of-Work) blockchains.

Polygon works via Commit Chains, which are networks that work next to the main blockchain-in this instance-Ethereum. The Commit chains collect transactions in batches and confirm them in bulk before returning data to Ethereum.

In theory, Polygon will eventually get thousands of chains to scale together for increased throughput. One day, the hope is that Polygon will generate millions of TPS (transactions per second) when cojoined to a chain like Ethereum. Currently, Polygon uses Commit Chain connectivity for improving transaction speeds but eventually will use other Layer-2 scaling mechanisms like Optimistic Rollups.

Is Polygon Better than Polkadot?

We need to know about Polkadot, which relies on parachains, sharded multichain networks to process transactions to compare the two. Most Polkadot projects are based on the Substrate framework, which is praised for allowing dApp developers to concentrate on the business aspect of projects instead of building and operating

Polkadot had its first protocol upgrade and first Proof of Concept in 2018. The PoS network launched officially in May 2020, while Polygon was established in 2017. Since Polygon’s launch., it has successfully onboarded over 80 apps, including Neon District, Skyweaver, and Polymarket.

It powers approximately seven million transactions for 200,000 user addresses. Polygon has implemented a PoS-secured Ethereum side chain called Matic PoS Chain and Matic Plasma Chains. Polygon integrates various interoperability mechanisms such as potential overlay rollup that combines layer 2 platforms and asynchronous messaging systems.

Polygon has more than 350 apps running on its network, and it seems to be getting better, with it being over 5,000% since the beginning of the year. However, when Eth2. 0 makes its debut; Polygon will get a run for its money.

Institutional Investors Backing Polygon

Polygon is enjoying an all-time high, with investors like billionaire Mark Cuban investing in it. Traders and retail investors are flocking to back Polygon. According to blockchain current data, a rising number of large investors and institutions are joining the Polygon bandwagon.

Cobo Custody, a top custodian service provider in Asia, and Cobo Wallet, a wallet platform and asset management, have declared their support for Polygon. This will enable both their retail and institutional customers to quickly access different Polygon ecosystems.

In June 2021, Polygon saw around 65% of daily stablecoin transaction volume with values above $1 million. This percentage shows the shift of decentralized finance whales from ETH to MATIC.

Circulating Supply

Polygon (MATIC) is the twenty-first largest cryptocurrency by market cap as of September 17, 2021, with a market cap of $624,690,227.

MATIC tokens are released monthly, and 4,952,830,774 Polygon coins are circulating in the market, out of a maximum supply of 10,000,000,000.

Polygon (MATIC) is currently trading at USD 0.12613. Polygon has sold $279,845,363 in the last 24 hours as of September 17, 2021.

Where To Buy Polygon

You can buy Polygon on most major exchanges like Coinbase, Kraken, and Binance. If you are an advanced crypto user, you can buy Polygon using Wrapped Ethereum on decentralized exchanges like Uniswap.

In Canada, you can buy Polygon on NDAX, Wealthsimple Crypto, and Newton.

How to Buy Polygon

Look for an exchange that supports crypto and fiat currency to make it easier to buy Polygon.

Open an account on a MATIC-compatible exchange

You will need to provide your proof of ID, phone number, and email for you to register.

Deposit Funds

Deposit some funds into your new account via a bank transfer, debit, or credit card, or deposit some crypto from a crypto wallet.

Buy Polygon

Buy your MATIC, and then find a suitable wallet to store your investment.

The MATIC Wallet

You can store your MATIC in the MATIC Wallet. This allows you to manage your investment and to stake your tokens. The MATIC Wallet is fashioned using the MoreVP technology from Polygon. This is a straightforward solution for MATIC token holders to manage their investment securely.  The Polygon Web Wallet supports WalletConnect, Wallet Link, and MetaMask,

The MATIC Wallet is swift and integrates with WalletConnect. This integration ensures the safety of your private keys and grants you access to various Polygon features. The wallet allows you to connect with multiple dApps, stake your MATIC tokens, and have other ERC-20 tokens in your possession.

Polygon expects to expand and surpass Ethereum. It will then be used for new blockchains to create their own DeFi (decentralized finance) ecosystems. To facilitate a DeFi mass adoption, there must be new DeFI infrastructure in place in a centralized, trustless, and immutable manner. The ability to deliver fast and cheap transactions is a challenge Polygon hopes to overcome.

Is Polygon Crypto A Good Investment?

The question of whether Polygon is a good investment is a personal choice. As with any crypto investment, you should invest an amount you do not mind losing. The crypto markets are very volatile, and although the cryptocurrency is almost mainstream, many risks exist.

Layer 1 networks are plagued by network congestion, and layer 2 networks like Polygon provide a solution. They also provide you with an avenue for exploring decentralized finance, eliminating miner transaction fees.

Investors need to watch the projects that table their smart projects to the Polygon MATIC network. Investors should also be keen on competing layer-2 solutions like Binance Smart Chain and Polkadot. Polygon is currently riding on a wave of popularity.

Like with most cryptocurrencies, Polygon MATIC’s price dropped at the end of May. However, it is over and above 5,000% since the beginning of the year, as mentioned before. Compared to other cryptos in the market, it has performed much better than most cryptocurrencies that experienced a price slump.

Final Thoughts

Even with its evident success, some quarters predict that Polygon may become obsolete with the unveiling of the Ethereum 2.0.

Polygon faces stiff competition from currencies like Cosmos and Polkadot, but there is no guarantee they will win.

It isn’t easy to speculate as crypto markets are not predictable. We have to wait and see what happens when the time comes.


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