Polygon

Polygon (MATIC) is the native cryptocurrency that powers the Polygon Network, a layer 2 platform created in 2017. Originally called the Matic Network, the Polygon Network allows developers to create and deploy their own blockchains that are compatible with the Ethereum blockchain with a single click, as well as enables other Ethereum-based projects to transfer data and tokens between one another using the MATIC sidechain. Think of it as a smaller blockchain that runs in parallel with the Ethereum blockchain. The price of Polygon’s token, MATIC, has skyrocketed this year.

The MATIC cryptocurrency first launched in 2019, two years after the Polygon network went live, via an “initial exchange offering” (IEO) hosted on crypto exchange Binance’s Launchpad platform. IEOs are initial coin offerings that take place on an exchange. These kinds of sales are supposed to be more trustworthy because the hosting exchange performs its own due diligence on the project prior to the sale. The initial price of MATIC was $0.00263, with a supply of 3.23 billion tokens. The sale secured the project over $5 million at the time.

MATIC’s price hit an all-time high of $2.40 in May 2021, three months after the project underwent a major rebranding from Matic Network to Polygon Network. Prior to the surge, which started in February and saw the token rise by more than 7,000% to its all-time high, MATIC had remained under $0.04 for almost two years.

The way MATIC tokens are allocated is slightly more complex than most other blockchain projects as the following applies:

Polygon lives on top of Ethereum as a layer 2 blockchain. The underlying Ethereum blockchain ultimately secures and settles transactions, but developers have been designing second layers built on top of blockchains to increase the number of transactions per second that a network can process.

In what some call an “Internet of Blockchains,” Polygon aims to bridge many different blockchain projects on Ethereum, which all boast different features, but aren’t necessarily interoperable. There are other blockchain projects trying to solve a similar problem, such as Polkadot and Cosmos. Polygon aims to improve upon these projects by being compatible with Ethereum, tapping the second-largest blockchain’s security and mature ecosystem.

Polygon uses the proof-of-stake consensus algorithm to simultaneously secure the network and create new coins over time. That is the same method used by Ethereum’s 2.0 blockchain and Cardano, and requires users to lock up tokens in order to be randomly nominated to validate new blocks of data.

All Polygon updates can be tracked via the project’s official GitHub page.

Staking on the Polygon network is similar to staking on other proof-of-stake (PoS) blockchains, but with some unique features and processes:

Polygon is a scaling solution and framework for building Ethereum-compatible blockchains. As Ethereum has grown in popularity and usage, issues related to scalability, high transaction fees, and latency became more pronounced. Polygon seeks to address these challenges by providing a way for decentralized applications (dApps) to run on sidechains that are connected to the main Ethereum blockchain. These sidechains allow for faster transaction speeds and reduced fees, while still inheriting the security and decentralized nature of Ethereum. The bridge between Polygon and Ethereum ensures assets and data can be seamlessly transferred between the two, offering developers and users increased flexibility and choices in terms of scalability solutions without compromising on the decentralization and security that Ethereum provides.

Polygon distinguishes itself in the blockchain space with its specific approach to scalability and interoperability. Unlike many standalone blockchains that operate independently, Polygon operates as a scaling solution and a framework for building Ethereum-compatible blockchains. Its primary goal is to address Ethereum's scalability issues by facilitating off-chain computation through sidechains, allowing for faster transaction speeds and lower fees. This means that, while many other cryptocurrencies are based on distinct blockchains with their own consensus mechanisms and use-cases, Polygon focuses on enhancing the Ethereum ecosystem by providing it with additional scalability options. It achieves this while ensuring a level of interoperability with the main Ethereum chain, offering developers a versatile platform without necessitating a departure from the established Ethereum toolset and community. Its native token, MATIC, has multiple uses, including transaction fees, staking, and governance

Polygon 2.0 is a set of proposed upgrades to the Polygon network that aim to improve its scalability, security, and decentralization. The upgrades are designed to make Polygon a more attractive platform for developers and users, and to position it as a leading Layer 2 scaling solution for Ethereum.

Some of the key features of Polygon 2.0 include:

Overall, Polygon 2.0 is a significant upgrade to the Polygon network. The upgrades have the potential to make Polygon a more powerful and versatile platform, and to help it achieve its goal of becoming the "Value Layer of the Internet."

Based in India, Polygon was launched by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun in 2017. Originally called Matic Network, they rebranded the network as Polygon in early 2021.

Polygon has several advisers who are influential in the world of Ethereum, including Ethereum Foundation alumnus Hudson Jameson and Ethereum developer resource EthHub co-founder Anthony Sassano.

Popular decentralized finance (DeFi) projects SushiSwap, Curve and Aave already use Polygon for improved scalability and speed. According to CrunchBase, investors include billionaire entrepreneur Mark Cuban and Coinbase Ventures.