Polygon (MATIC): what is it and how to use it?
By Polygon, also known as MATIC, is a highly efficient smart contract platform. It serves as a network fuel that can be purchased, sold, or exchanged using a Bitcoin wallet.
Features of Polygon (MATIC)
Polygon represents itself as one of the blockchain frameworks designed to enhance the Ethereum network. Its primary objective is to reduce transaction costs and boost transaction speed. This is achieved through continuous expansion of its set of software tools, including an EVM-enabled blockchain sidechain called Polygon PoS. Utilizing Proof-of-Stake technology, it boasts a native MATIC token. Furthermore, Polygon is actively developing various second-level solutions for Ethereum, encompassing Optimistic rollups and zero-knowledge proofs.
Functions of Polygon
The overarching goal of Polygon is to provide a diverse array of software tools to augment the scaling of Ethereum. Developers can construct decentralized applications with access to the Ethereum network on layers 2 or sidechains using the Polygon Software Development Kit (SDK). To engage with Polygon, one must first connect their wallet to the platform and then execute trades via the Verse DEX trading platform.
Background of MATIC
Founded in 2017 by three Indian citizens, Polygon emerged from an informal group who amassed an initial capital of $150,000 from family and friends. Jainti Kanani, a blockchain systems development expert, assumed the role of CEO, while Sandeep Nailwal, a seasoned programmer and businessman, took on the operational director position. Anurag Arjun contributed as an executive director.
After securing an additional $500 thousand from acquaintances, they formalized the project concept. Subsequently, Polygon successfully conducted an ICO, raising $5 million over two years. The organization managed to list its cryptocurrency on major exchanges, demonstrating significant progress in expanding its reach and garnering interest.
Despite cryptocurrency regulations in India being less than optimal, ongoing investment facilitated product advancement. Legal concerns posed challenges for hiring programmers. Consequently, the founders initiated hackathons and forums for developers across India, organizing around 300 events within two years to attract talent.
In February 2021, the company transitioned from Matic Network to Polygon, aiming for a global and international brand aligned with its vision. The shift marked a pivotal moment, aligning with the core mission of enhancing Ethereum’s scalability. Through Proof-of-Stake and sidechain technology, Polygon introduced new opportunities and resources to the Ethereum ecosystem.
MATIC, the cryptocurrency native to the platform, continues to serve as a payment method and remains listed on exchanges. Polygon emerges as a versatile solution, offering enhanced transaction speeds and complexity reduction. Positioned as a secondary layer to Ethereum, it preserves the blockchain’s original structure. With its multifaceted approach akin to a geometric polygon, MATIC simplifies network creation compared to competitors. By fostering Ethereum’s growth and utility, Polygon elevates product safety, efficiency, and value, encouraging swift developer integration into the market.
Transaction Speed
As of August 2021, Polygon’s transaction throughput stands at an impressive 65 thousand transactions per second. This capability holds the potential to facilitate millions of transactions. Blocks are confirmed either every 2 seconds or less frequently, providing flexibility in transaction processing. Nowadays, transactions on the network can be executed rapidly.
Unique aspects
MATIC represents the latest endeavor to enhance blockchain interoperability and scalability. The project aims to address some of the challenges faced by competitors like Polkadot and Cosmos. It is designed to operate in conjunction with the Ethereum virtual machine and is accessible to software developers experienced in building applications on Ethereum.
To rival Cosmos, which utilizes a virtual vehicle running on the WASM platform, MATIC prioritizes security within its requirements. Independent platforms do not need to relinquish their independence or functions, whereas dependent platforms might have to make such sacrifices. Thanks to this model, users can opt for any scaling solution they prefer.
