Polygon (MATIC), also known as Matic Network, is considered the "powerful right hand" of the Ethereum network. The project acts as an interoperable blockchain scaling framework. From its inception, Polygon (MATIC) created a sensation in the cryptocurrency investment community, with its token consistently reaching new highs. Therefore, Polygon is known as one of the projects with surprisingly high ROI (return on investment) on cryptocurrency exchanges worldwide.
So what made it so famous?
What is Pol?
Polygon is a Layer 2 scaling solution supported by Binance and Coinbase. The protocol encourages the use of cryptocurrencies by addressing scalability issues in the blockchain field.
The Polygon Project
Polygon is the first platform to scale Ethereum and develop on the Ethereum infrastructure. Its core component is the Polygon SDK, a flexible modular framework that supports building a wide variety of applications.
Polygon is a combination of the Plasma framework and PoS (Proof-of-Stake). Polygon adopts the Plasma framework based on a proposal from Ethereum co-founder Vitalik Buterin. It allows for easy implementation of smart contracts, and is easily scalable and self-managed.
How the POL network works.
Users deposit cryptocurrency in a Matic contract on the main chain, currently the Ethereum blockchain.
After the deposited tokens are confirmed on the main chain (Ethereum), the corresponding tokens are transferred to the Matic (Polygon) chain.
Users can transfer tokens to anyone they want instantly with negligible fees. It is much more economical to use the Ethereum network. The Matic (Polygon) chain has faster block times (approximately 1 second or less). Therefore, the transaction process is almost instantaneous.
If users wish, they can withdraw remaining tokens from the main chain by setting up proof of the remaining tokens on the native contract on the Ethereum chain.
Advantages of the project
Polygon focuses on optimizing scalability and instant blockchain transactions. Polygon utilizes a custom Plasma framework, built upon proof-of-stake checkpoints running on the Ethereum mainchain. This unique technology allows each Polygon subchain to achieve up to 65,536 transactions per block, significantly improving transaction processing capabilities.
Furthermore, Polygon subchains are designed to support many decentralized finance (DeFi) protocols available within the Ethereum ecosystem. The Polygon protocol is built to address some of the limitations of other interoperability enhancement projects like Polkadot and Cosmos. Polygon is compatible with the Ethereum Virtual Machine (EVM), making the system accessible to those already familiar with building Ethereum applications and programming with Solidity.
Disadvantages of the project
Polygon only supports the Ethereum basechain.
Polygon project mission
dApp Development: Utilizing Polygon (MATIC) to extend dApps and optimize user UI/UX experience.
Staker: Staking MATIC tokens contributes to transaction processing. Stakers also propose checkpoints based on the PoS consensus mechanism. They also select qualified Block Producers to produce blocks on sidechains.
Block Producer: Increases blockchain creation speed. They must stake a significant amount of MATIC tokens to secure this position.
Supporting and Expanding the Ethereum Network: Polygon does not compete with but supports the Ethereum network. Its core mission is to use its network to handle large transaction volumes, making Ethereum more accessible to a wider range of users.
Creating an "Internet of Blockchains": Polygon envisions a world where separate blockchains can communicate and exchange value easily, overcoming current technological barriers.
Providing Infrastructure for Developers: It offers an easy-to-use framework so developers can quickly build and deploy their own Ethereum-compatible blockchains.
Optimizing Performance and Costs: Through technologies such as Plasma, Proof-of-Stake (PoS), and ZK-rollups, Polygon enables faster transactions and lower fees compared to the main Ethereum network (Layer 1).
MATIC Token of the Polygon Project
Basic Information
- Name: MATIC.
- Initial Total Supply: 10,000,000,000 MATIC.
- Token Standard: ERC 20.
- Token Type: Utility Token.
- Blockchain: Ethereum.
- Circulating Supply: 5,011,255,458 MATIC.
Token Allocation
- Team: 16%.
- Advisors: 4%.
- Platform: 21.86%.
- Ecosystem: 23.34%.
- Launchpad: 19%.
- Seed Round: 2.09%.
- Initial Supporters: 1.71%.
- Staking Rewards: 12%.
Conclusion
The Polygon protocol is on an upward trajectory. Polygon's unique design offers many opportunities for flexible innovation and is constantly improving compared to previous projects. However, in the current competitive landscape, Polygon (MATIC) needs to quickly define its target features and keep up with current trends to avoid being left behind.
Disclaimer: This article is for informational purposes only and provides an overview of the investment project in the cryptocurrency market. Investors and traders should not rely on the information provided here to make investment decisions.