A comprehensive guide to Polygon Matic network

Polygon Matic is a set of protocols specifically designed to address the scalability challenges faced by the Ethereum network.

With the Ethereum-compatible blockchain, Polygon network transactions are processed independently. This approach effectively reduces the network load on Ethereum, resulting in accelerated transaction speeds and significantly lower transaction costs, sometimes even less than a cent.

Formerly known as the Matic network, Polygon is a user-friendly framework that enables new and existing blockchain projects to operate on the Ethereum platform without encountering scalability issues. Users can seamlessly interact with decentralised applications (DApps) through Polygon without concern about network congestion.

How does it function?

Polygon, the scaling solution, can handle up to 65,000 transactions per second at comparatively lower costs to users, a substantial improvement compared to Ethereum's limit of roughly 17 transactions per second. Polygon processes transactions independently from the Ethereum main chain by utilising side chains.

Ethereum transactions come with an average fee of around $15, while Polygon can process transactions for just a few pennies. This substantial difference in fees makes Polygon an attractive option for users seeking cost-effective solutions.

Polygon's diverse suite of protocols includes the zero-knowledge (zk) proof variety. Zero-knowledge proofs are cryptographic primitives used to verify the validity of a statement without revealing any additional information. This flexibility empowers users to select the most suitable scaling option from a range of choices provided by Polygon Matic.

Several integration options available on Polygon are particularly popular among project teams. These include plasma sidechains, a Proof-of-Stake (PoS) blockchain bridge, zk rollups, and optimistic rollups. Initially, Polygon started with plasma sidechains, lighter and more secure sidechains running parallel to the Ethereum main chain. These sidechains facilitate secure asset transfers between themselves and the main Ethereum blockchain.

Polygon introduced a blockchain bridge to its product lineup to meet the increasing demand from developers. This bridge operates on a PoS mechanism, enabling developers to create DApps on one platform without sacrificing the benefits provided by other platforms.

Polygon Matic reduces the burden on Ethereum's main chain by processing batches of transactions on its own Proof-of-Stake blockchain. This approach makes Ethereum faster and more lightweight by offloading transaction processing to Polygon.

zk rollups tackle scalability by processing bundles of transactions off-chain and generating validity proofs. These proofs are then sent to the main Ethereum blockchain as proxies for the respective data bundles. This strategy reduces the data load on the main chain, leading to faster validation of transaction blocks and lower gas fees.

Optimistic rollups employ a different proof system known as fraud-proof. If a fraudulent transaction is identified, a fraud-proof protocol is activated, ensuring that the correct transaction is determined based on the data available on the main blockchain. Stakeholders who update transactional data on the system must stake ETH, which acts as a deterrent for submitting fraudulent transactions through optimistic rollups.

Polygon token (MATIC)

The MATIC token serves as the foundational asset within the Polygon system. It plays a dual role in facilitating transaction payments and safeguarding the integrity of the Polygon Matic network by storing tokens. Following its rebrand, the MATIC token has experienced a significant surge in value due to a substantial increase in its utilisation.

With a supply of 10 billion tokens, the MATIC token currently has a circulating supply of approximately 5 billion. This token can be easily accessed and traded on prominent, decentralised and centralised exchanges, including popular platforms such as Binance, 1inch Exchange, and Coinbase Pro.

According to CoinGecko, the current market capitalisation of the token stands at an impressive $5,866,490,572 at the time of writing. As for its value, the token is currently valued at approximately $0.63.

MATIC token use case

$MATIC serves a crucial role in enhancing the security of the system and establishing a robust governance system on the platform. This governance system empowers token holders to participate in decision-making processes regarding implementing new features.

By leveraging this system, token holders can exercise their voting rights to determine the direction and future of the platform.

The token also enables users to make payments through crypto using DApps and pay transaction fees on the network.

Bottom line

Polygon Matic, the layer 2 blockchain, is a scaling solution aiming to improve the speed and lower the additional high transactional fees charged on the Ethereum blockchain. It has recently forged numerous partnerships to expand its user base, collaborating with renowned entities such as DraftKings, Starbucks, Adobe, Adidas, Prada, Disney, Meta, Stripe, and Reddit.

Through these strategic partnerships, the network aims to broaden its user base and foster the adoption of NFTs across various industries, showcasing the versatility and potential of blockchain technology.