Significant price surges are amusing. Everyone wants to hop on and have a ride to the moon: some people are driven by FOMO, some HODL for the blind faith, the others believe in DYOR. In the “Rolling Stocks’’ series, we overview the hottest outbreaks and find out the reasons for such successes.
This time we’ll dive into Polygon (MATIC) and explore its basics, key features, and recent updates!
What Is MATIC Crypto?
Polygon (MATIC) is a network of secure L2 solutions and autonomous sidechains. Its goal is to increase the scalability of Ethereum and reduce the cost of transactions. In addition to its own technologies Matic PoS Chain and Matic Plasma Chains, the Polygon network will support Optimistic Rollups, ZK-Rollups and Validium.
Who Created MATIC And When?
The platform’s test network was launched in October 2017 under the name Matic Network.
The project has three co-founders:
- Jayanti Kanani, CEO of Polygon Network;
- Sandip Nailwal, Executive Director;
- Anurag Arjun, Director of Production Control Department
Matic has created a Plasma Chains scaling model for Ethereum and an Ethereum Matic PoS Chain based on Proof-of-Stake [PoS]. Over time, Matic PoS Chain has become a popular scaling option for various applications.
In April 2019, the company held an IEO of the MATIC token and raised $5.6 million.
In February 2021, the Matic Network developers changed the name of the project to Polygon. The rebranding was timed to coincide with the transition from a second level solution for the Ethereum blockchain to a multi-chain system similar to Polkadot.
What Are The Technological Features Of MATIC?
The central component of the Polygon ecosystem is the modular Polygon SDK, which allows developers to create decentralized applications and any network infrastructure elements.
Polygon supports Matic PoS Chain and Matic Plasma Chains.
Matic Plasma Chains is an implementation of a framework for building scalable decentralized Plasma applications. This second-level solution was originally proposed by Joseph Poon and Vitalik Buterin.
Matic PoS Chain is a decentralized sidechain running parallel to the Ethereum blockchain. Matic PoS Chain uses the Proof-Of-Stake consensus mechanism and its own set of validators.
The Matic PoS Chain is EVM compliant, which allows Ethereum-based projects to seamlessly move their smart contracts to this blockchain.
What Is The Polygon MATIC Consensus Mechanism?
Plasma/POS uses a Proof-of-Stake (PoS) consensus mechanism.
In the process of reaching consensus on the Matic Network, validator users stake MATIC tokens. Matic Chains provide a mechanism for removing staked funds in order to discourage stakeholders from proposing invalid blocks, illegally verifying blocks, and performing invalid transactions. The requirement to stake funds to participate in the consensus-building process helps maintain network functionality.
What Role Does The Native MATIC Token Play In The Polygon Ecosystem?
The total supply of ERC-20 MATIC tokens is 10 billion.
The native token Polygon MATIC is used as a means of payment in transaction fees and in the settlements of participants in the Polygon ecosystem.
Matic sidechains reach consensus through a Proof-of-Stake (PoS) level, in which network participants stake MATIC tokens, which gives them the opportunity to be validators and receive rewards. Computing resources are required to validate blocks, publish evidence, and other operations. MATIC inflation allows the providers of these resources to be rewarded.
What Are The Advantages Of Polygon?
Polygon’s architecture is abstract and feature-rich, allowing other applications to select the optimal scaling solution that best suits their needs.
Polygon provides numerous features, and application teams can select those that meet the needs of their use cases. They can also move from one scaling solution to another when the project changes or a better scaling solution becomes available. The design architecture allows the various Polygon-based scaling solutions to interact rather than being isolated.
Matic Crypto News
As of May 2021, about 1 million accounts have been created on the basis of Polygon, more than 84 million transactions are carried out per day, more than 50 digital assets have been released on the basis of its own POS blockchain, including MATIC, Tether USD (USDT), USD Coin (USDC ), Quickswap (QUICK), Dai Stablecoin (DAI), Chain Games (CHAIN).
Many projects have either migrated to Matic PoS Chain or are in the process of migrating — Decentral Games, SportX, Easyfi, Neon District, 1inch Network, Quickswap, Uniswap, Sushiswap, Aavegotchi, Polymarket, Polkamarkets and Superfarm. The Graph and Chainlink are planning to expand to Matic. Polygon also announced a partnership with Atari, a major player in the video gaming industry.
In May 2021, Polygon entered the Mark Cuban Companies, a list of companies backed by billionaire Mark Cuban. The amount of the investment has not been disclosed.
The ecosystem of the project is rapidly growing — in the DeFi Pulse rating Polygon fourth by the TVL criterion (the total amount of funds blocked in the DeFi protocol).
MATIC Crypto Price
With a high degree of probability, the value of MATIC tokens may grow. It is one of the most promising assets of 2021.
Originally published at https://coinjoy.io.