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What is Polygon (MATIC)?
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What is Polygon? How exactly is Polygon connecting Ethereum-compatible blockchain networks? In this article, Liquid has covered everything you need to know about Polygon and how its scaling solutions help increase cryptocurrency transaction speeds.
Polygon (previously Matic Network) is a protocol designed to boost the scaling capabilities of a blockchain network. It improves the speed and security of a blockchain network by implementing its Proof-of-Stake sidechain to achieve higher throughput (with speeds of up to 10,000 transactions every second on a single side chain).
Polygon's native token (MATIC) allows users to make transactions while enabling staking and validating participation. MATIC token holders can also have others validate on their behalf while still collecting on staking and earning rewards. Users of the proof-of-stake system will utilize their tokens as collateral and gain MATIC tokens in return.
Introduction to Polygon
Polygon brings the crypto ecosystem one step closer by offering a full-fledged multi-chain experience, courtesy of its interoperability and scaling framework. In this section, let's briefly talk about what Polygon is all about.
Previously known as Matic Network, Polygon helps build interconnected blockchain networks that can talk to each other while ensuring high throughput and significantly lower GAS fees.
The primary objective of Polygon's state-of-the-art framework is to address some of Ethereum's significant scalability challenges and limitations, such as and delayed transactions and lack of community governance.
While Matic Network had a limited scope of processing off-chain transactions before finalizing them on Ethereum, Polygon, in its brand new avatar, is designed to help developers launch customized, interoperable blockchains.
How does Polygon work
Polygon's framework comprises a four-layer system architecture, as follows:
- Ethereum layer
This optional layer consists of smart contracts designed to handle transaction finality, staking, and interoperability between Ethereum and the different Polygon sidechains.
- Security layer
As the name suggests, the security layer allows chains to benefit from an additional layer of network security. Like the Ethereum layer, the security layer is also optional.
- Polygon networks layer
The Polygon networks layer is one of the two mandatory layers designed to handle local consensus and producing blocks.
- Execution layer
The second mandatory layer is the Execution layer designed to execute smart contracts.
Sidechains deployed on Polygon can communicate with one another and the Ethereum main chain, thereby enabling use-cases like interoperability between multiple blockchain network platforms and decentralized applications (DApps).
Polygon framework revolves around a number of technologies as follows:
- POS Chain
Polygon's main chain, known as the Polygon POS Chain, integrates a proof-of-stake (POS) security layer with different blockchain networks operating on Polygon.
- Plasma Chains
Polygon moves assets between the root chain and child chains, courtesy of Plasma bridges.
A scaling solution designed to process transactions off-chain before finalizing them on the Ethereum main chain.
- Optimistic rollups
It is an Ethereum-based solution designed to facilitate near-instant transactions.
Why do we need Polygon?
Polygon bridges the gap between different blockchains and allows them to operate as a broader, interconnected network, enabling seamless communication between various decentralized products and services and addressing issues like high gas fees, poor scalability, and limited security.
With Polygon, its shared security model is entirely optional, providing developers with a choice whether they want to opt for additional security or not.
A native token of Polygon, MATIC is designed to enable network governance where token holders can vote on Polygon Improvement Proposals (PIPs). People can also use MATIC tokens to stake funds and pay gas fees. There are currently 6,330,554,997 MATIC tokens available in circulation. But since it is a limited supply cryptocurrency, there can't possibly be more than 10,000,000,000 MATIC tokens available in the market.
Polygon offers a fast-growing blockchain scaling solution designed to enhance user experience. By increasing transaction speeds, Polygon aims to increase the popularity of the blockchain ecosystem.
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