What is Polygon Crypto?
Posted by Frank Gogol
Polygon is a protocol that allows you to connect blockchain networks compatible with Ethereum. Now that decentralized finance is gaining more and more popularity, there are a lot of high network fees because the networks are full of transactions. Polygon comes as a solution for the issues commonly brought by blockchains, such as slow speeds and high gas fees, and it manages to stay safe and secure at the same time. But what exactly is Polygon and how does it work? This article explains everything, including how to buy Polygon.
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What Is Polygon? (MATIC)
Polygon used to be known as MATIC network in the past. It is a framework and a protocol that allows you to build and connect blockchain networks that are Ethereum-compatible. It can allow alt chain scalability and adaptability of every alt chain while bringing the liquidity and security of Ethereum.
After a while, Polygon wishes to add two new roll-ups to the platform. One of them will help run on top of the already existing Ethereum network, which will make transactions faster. The other one will help distribute multiple off-chain exchanges, creating solitary trades.
Even though it rebranded, Polygon kept its cryptocurrency known as MATIC. It is a digital coin that underpins the network. People who interact in the network can use the cryptocurrency as either a settlement or payment unit.
Polygon MATIC resolves all the issues associated with Ethereum. Ethereum is certainly one of the most used blockchains in the world and will continue to be one of the most popular ones for a long time. It is very effectively utilized, and this is one of the reasons why it is so loved and why it became known very quickly after 2013. What’s more, Ethereum also gives smart contracts as a POS, or Proof-if-Stake framework.
The downside is that the fast adoption of Ethereum came with a few side effects. The cost raised a lot, and oftentimes, the exchange charge had a higher price compared to the sum that was being transferred. After all, a lot of people are using the network, which is what decreases the exchange scalability.
Polygon MATIC resolves exactly these problems. The system that Polygon uses has a lot of members, including clients, stakeholders, developers, and block creators. To be able to work with various Ethereum-based decentralized apps, Polygon clients can use the MATIC Sidechain. This comes with faster speeds, as well as lower costs, which is more convenient.
Developers are able to either scale their apps or combine their sidechains by using the Polygon SDK network and stack. Polygon’s stakeholders also work the same way as Ethereum’s PoW miners. They have to lock their MATIC tokens to be able to approve and confirm MATIC Sidechain exchanges. They can also use the locked tokens in order to pick eligible block creators. This enables the regulation of the block creation process. Afterward, the block creators work on making the blocks and settling all the network exchanges. A large amount of MATIC tokens need to be locked to allow stakeholders to be picked as block creators.
How Does Polygon Work?
Polygon’s network has a software development kit, which is then used to help build decentralized sidechains and applications compatible with Ethereum. They can then be connected to the main blockchain. Some of the methods that can be used to build sidechains are zk-Rollups, Plasma Chains, and Optimistic Rollups. Plasma chains and optimistic rollups are a bit similar. While the former helps bundle transactions into blocks and then put them into one Ethereum blockchain submission, the latter allows Ethereum smart contract scaling.
Everything including the client nodes, structure, local dapps, token and other aspects are very similar to those of other blockchains. The only difference is that the exchanges are done over the Ethereum mainchain. But Polygon also made a 2-layer network that allowed them to build blockchain networks that are Ethereum-viable.
Layer-2 scaling solutions point to off-chain solutions, which allows getting rid of different aspects with evaluation power from the main blockchain. This is done before the execution occurs on sidechains, for instance. As a result, the evaluating proficiency spreads more across the network and becomes better. There is a lot of attention on layer-2 solutions and the attention keeps growing.
Now, developers are able to use just one snap in order to send preset blockchain networks, and this is all thanks to Polygon’s modular system for assembling custom networks. Every blockchain can also cooperate very easily with another blockchain.
People who want to interface with decentralized apps that went into the MATIC sidechain have a few requirements. They have to store their tokens on the MATIC Sidechain after the verification of the predicate contract. Also, they have to verify the Predicate Contract that the Ethereum network conveys. People must also accept tokens on the MATIC sidechain, after which they have to quickly move them within the network, which will bring small costs.
In order to pull the tokens back to Ethereum, clients have to first make sure the tokens are scorched on the MATIC sidechain and that the scorched exchange verification is sent to the Ethereum mainchain too.
Once the whole process is done, the resources will be stored back by the “RootChainManager” to the client’s wallet on the mainchain of Ethereum.
What Is a Polygon MATIC Token?
The Polygon MATIC token is the cryptocurrency used by Polygon. It is the base resource that the system uses. People use it for many things. It can be used either to store tokens in order to protect Polygon’s network, or it is used in exchange payments. Once Polygon was rebranded, the token got a surge in costs after more and more individuals started using it.
In fact, as much as 10 billion tokens are covered by the MATIC token. Its present supply sits around 5 billion. Also, some of the most popular centralized and decentralized-based tradings offer the token. Some of them are Coinbase Pro and Binance. MATIC tokens are accessible not only in fiat but also in crypto, which makes buying the tokens much easier. According to CoinGecko, the Polygon MATIC market also has a 1.8 billion dollars market capitalization. The value of the MATIC token is also at around 0.36 dollars currently.
How to Buy Polygon?
Buying Polygon is not difficult. All you have to do is go to one of the large exchange platforms that are available, like Coinbase or Binance, for example. If you are more advanced with cryptocurrency use, you can also get it from decentralized exchanges, such as Wrapped Ethereum or Uniswap.
Polygon MATIC is a great option, especially if you are trying to avoid the high costs of Ethereum and its slow speeds. Polygon proved that it is successful in resolving the problems that come with Ethereum and for this reason, it gains more and more popularity with each passing day. You can also work on creating your own decentralized network. With some of the tools and features provided by Polygon, this can be an easy and smooth process.