Matic Project Rebranded To Polygon

What is Polygon (MATIC)?

Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.

To learn more about this project, check out our deep dive of Polygon Matic.

Using Polygon, one can create optimistic rollup chainsZK rollup chains, stand alone chains or any other kind of infra required by the developer.

Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc. with the advantages of Ethereum’s security, vibrant ecosystem and openness.

The $MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.

Polygon (formerly Matic Network) is a Layer 2 scaling solution backed by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains.

Polygon combines the Plasma Framework and the proof-of-stake blockchain architecture. The Plasma framework used by Polygon as proposed by the co-founder of Ethereum, Vitalik Buterin, allows for the easy execution of scalable and autonomous smart contracts.

Nothing will change for the existing ecosystem built on the Plasma-POS chain. With Polygon, new features are being built around the existing proven technology to expand the ability to cater to diverse needs from the developer ecosystem. Polygon will continue to develop the core technology so that it can scale to a larger ecosystem.

Polygon boasts of up to 65,000 transactions per second on a single side chain, along with a respectable block confirmation time of less than two seconds. The framework also allows for the creation of globally available decentralized financial applications on a single foundational blockchain.

The Plasma framework gives Polygon the potential of housing an unlimited number of decentralized applications on their infrastructure without experiencing the normal drawbacks common on proof-of-work blockchains. So far, Polygon has attracted more than 50 DApps to its PoS-secured Ethereum sidechain.

MATIC, the native tokens of Polygon, is an ERC-20 token running on the Ethereum blockchain. The tokens are used for payment services on Polygon and as a settlement currency between users who operate within the Polygon ecosystem. The transaction fees on Polygon sidechains are also paid in MATIC tokens.

How Does Polygon (MATIC) Work?

Polygon’s MATIC Sidechain functions like every other Proof-of-stake-based blockchains. Its structure, token, client nodes, local dapps, validator nodes, etc, are similar to other networks except the factor that exchanges are clustered and settled over the Ethereum mainchain.

Fortunately, Polygon has fostered a layer-2 network for building interoperable, Ethereum-viable blockchain networks. 

Layer-2 scaling solutions allude to off-chain solutions. This includes lessening or eliminating components with evaluation power from the prime blockchain prior to their execution somewhere else, for example, on sidechains. This builds throughput on the mainchain and spreads the evaluating proficiency across the network. Layer-2 solutions are receiving expanded fame as they play an essential role for the mass reception of cryptographic money.

The modular system of Polygon for assembling custom networks permits developers to send preset blockchain networks with just one snap. Besides, Polygon makes it simple for any blockchain to cooperate with another blockchain without any issues.

You can think about the MATIC sidechain as a valuable section of the vast universe of Ethereum, which offers clients prevalent project implementation and good working experience. Each Ethereum-based decentralized app or some other Ethereum-viable blockchain can be converted to the Matic Sidechain to work in a considerably more improved climate.

Clients who want to interface with decentralized apps that have moved to the MATIC Sidechain are required to:

  • Verify the supposed Predicate Contract conveyed on the Ethereum network, bolting the tokens to be sent on the MATIC Sidechain.
  • After the predicate contract gets verified, tokens will be automatically stored on the MATIC Sidechain. In this cycle, a specific smart contract named “RootChainManager” activates another smart contract known as “ChildChainManager” that creates the proper measure of bolted or stored tokens on the MATIC network.
  • When clients accept their tokens on the MATIC Sidechain, they can move them quickly within the network with minor expenses. This implies that giving or exchanging liquidity utilizing a decentralized trade on MATIC will cost the client pennies rather than heavy dollars.

Steps to Pull out the tokens back to Ethereum

  • The tokens must be scorched on the Matic sidechain.
  • The verification of this scorched exchange must be delivered to the Ethereum mainchain.

When this cycle is finished, the smart contract “RootChainManager”  will store back resources for the client’s location (wallet) on the Ethereum mainchain.

How Do You Use The Polygon Network?

The Polygon network allows you to do many of the same things the main Ethereum network allows, but with fees that are often a fraction of a cent. You can try decentralized exchanges like QuikSwap or SushiSwap, yield-generating lending and savings protocols like Aave, NFT markets like OpenSea, or even “no-loss prize games” like Pooltogether. 

To try the Polygon network, you need to send some crypto to a compatible crypto wallet like Coinbase Wallet. You can then “bridge” some of your crypto — stablecoins are a popular choice for this — to the Polygon network. You’ll also need to bridge some MATIC to make transactions, but even a dollar’s worth is plenty because fees are so low. 

Low fees and near-instant transactions make the Polygon network an excellent way to gain some real-world experience trying out DeFi protocols. (Remember that DeFi can be highly volatile — so start small and don’t invest more than you can afford to lose, especially as a beginner.)

Why is it Important To Ethereum?

  • Matic is compatible with the Ethereum Virtual Machine (EVM). And Polygon is simple to use for developers who are used to working with Ethereum.
  • Polygon has a security layer that may be turned on or off, enabling sovereign platforms to forgo additional protection while maintaining their freedom and flexibility.
  • MATIC tokens can be used to vote on Polygon Improvement Proposals and participate in network governance.

Matic Token And Matic Wallet

The Matic token (MATIC) is Polygon’s native token, and has several distinct uses, one of them being to power the protocol via a gas-based mechanism used to pay network fees accrued from the computational power the network exerts to transfer data. This mechanism also allows software developers and ecosystem contributors to build dApps on Polygon by paying MATIC tokens to use the platform and its development framework.

MATIC can be stored in the Matic Wallet, instantly giving holders the option to stake their tokens and manage their own investments directly. Matic Wallet is designed using Polygon’s MoreVP technology as an easy-to-use solution for MATIC token holders to securely and simply manage their crypto finances. The wallet is built to be lightning-fast and integrate with WalletConnect to ensure the safekeeping of a user’s private keys, and to provide access to other Polygon features. The wallet also allows users to connect with various dApps, stake their MATIC tokens, and hold other ERC-20 tokens.

In the future, Polygon hopes to expand beyond Ethereum and be used for other blockchains that are creating their own decentralized finance (DeFi) ecosystems. To enable the mass adoption of DeFi, new blockchain infrastructure must be built in a decentralized, immutable, and trustless manner with high scalability and the ability to deliver cheap, fast transactions — a challenge that Polygon hopes to address.

Real-World Uses Of The Polygon Crypto Network

Payments: The Polygon crypto platform is designed to allow dApps to speed up payments, enabling nearly instant payment settlement through specialized application programming interface (API) and software development kit(SDK) integration. This process allows dApps, merchants, and users to instantly accept or pay in any type of cryptocurrency — though usually in ERC-20 tokens or ETH. This system is being rolled out in three distinct phases:

  1. Ethereum (ETH) and ERC-20 token payments
  2. Cross-chain multi-asset token transfers and payments utilizing atomic swaps in partnership with liquidity providers
  3. Fiat-based payment system employing fiat liquidity providers
  4. Lending Platform: Polygon is building a mechanism to allow merchants to analyse the credit ratings of users who have signed up to use the platform by assessing their transaction history. This functionality is carried out in partnership with Dharma Protocol. The leading Lending Protocol Aave has more than $1B liquidity locked on its Polygon markets with more than 8000 users.

Games: Polygon’s Layer-2 sidechain scaling solution stands to make blockchain-based gaming faster and perform better. Blockchain gaming lags behind traditional PC and console gaming systems because of poor transaction speed and high network latency. With Polygon’s Commit Chain scaling technology and the Ethereum network working together, developers and gamers will be able to build and play games more effectively. Polygon’s ability to help grow the blockchain gaming industry could not come at a better time, as non-fungible tokens (NFTs) and NFT marketplaces are driving the popularity of the blockchain and crypto industry at large — with many gamers buying, selling, and trading different types of in-game NFTs. Top Gaming and NFT Dapps like Aavegotchi, Neon District, Zed Run, and Cometh have scaled their user experiences with Polygon.

Other Use Cases: Polygon is also built for many other use cases, like helping realize the fast settlement times needed to allow decentralized exchanges (DEXs) to offer users faster and cheaper trading. Quickswap, Dfyn and ComethSwap are some of the Polygon DEXs that are witnessing high volumes and user activity. Protocols like Curve and mStable have also ensured low cost and low slippage stablecoin swaps. Additionally, Polygon’s plasma scaling solution is able to expedite cross-chain atomic swaps of tokenized and non-tokenized assets. Most dApps need a way to sign transactions without submitting private keys due to user privacy concerns. Because of its scalability enhancements, Polygon helps enable an open identity framework for dApp design and use.

Polygon (Matic) Pros

✅ It Has Shown Independence from the Price Patterns of Bitcoin

✅ Polygon Scales Relatively Faster, Interoperable, and Has 100s of Partnerships

✅ Continues to Benefit from the DeFi Boom in Ethereum

✅ Grayscale Is Exploring Investment Product for Polygon 

✅ Low transaction fees

✅ Has Validation from Prominent Investors and Major Players 

✅ Great for decentralized finance apps

Polygon (Matic) Cons

❌ Momentum Will Slow Once Ethereum’s Proof-Of-Stake Is Fully Implemented

❌ There Is Competition from Blockchain Technologies

❌ Global Crackdown on Crypto

❌ Market Cap/ Total Value Locked Ratio is high (asset may be overvalued when this occurs)

 

 

Bringing The World To Ethereum

Polygon believes in Web3 for all. Polygon is a decentralised Ethereum scaling platform that enables developers to build scalable user-friendly dApps with low transaction fees without ever sacrificing on security.

Polygon: The Network For NFTs 

Polygon is popularly known as ‘Ethereum’s Internet of Blockchains’ as it connects Ethereum-compatible networks and standalone blockchains into a multi-chain ecosystem. This network functions as a Layer-2 scaling solution for Ethereum, thus benefiting from the blockchain network while also working on its flaws. As a result, Polygon can facilitate 65K TPS with instantaneous block finality and negligible gas fees.

Due to the aforementioned benefits, developers prefer to build their NFT projects on the Polygon network. Crypto users also benefit from this decision as minting and trading NFTs on-chain becomes faster with low transaction charges. If this is too tempting and you wish to move to Polygon right now, we can guide you.

However, we have to admit that Polygon’s attractive features have made it susceptible to some NFT scams. Malicious actors often talk about an upcoming NFT airdrop and then dupe gullible users, especially those who are new. We strongly believe that NFT holder airdrops are the safest bets for receiving free NFTs. For example, Lazy Lions holders receiving Bungalows NFTs, and Robotos holders receiving Robopets are the best ways of receiving free NFTs.

However, Polygon NFTs are so cheap due to low gas fees that they are almost free. You just need to pay for the NFT itself to get hold of one.

1] PolygonPunks

PolygonPunks are a set of 10K algorithmically generated collectibles with unique attributes like hairstyles, facial expressions and eyewear. The legendary CryptoPunks have inspired these Polygon NFTs, and they have rare Apes and Zombies in their collection. Since CryptoPunks are now unimaginably expensive, PolygonPunks provided a second chance to the crypto community to get hold of these characters. As soon as the developers launched the project in August 2021, they got sold out in just 24 hours. 

2] Polychain Monsters

Polychain Monsters are a collection of animated cross-chain NFTs that users can unpack from digital booster packs on Polygon, Ethereum and Binance. Each NFT is called a Polymon with rare and unique traits including colour, horns and glitter effects. Users can buy Polymons with the deflationary $PMON token that powers the protocol. Polymon holders will get access to the exclusive Play-to-Earn game called Polychain Islands and earn rewards. Users can also receive weekly rewards from staking their Polygon NFTs and farm $PMON tokens to earn yields. 

3] Aavegotchi

Aavegotchi is a DeFi-powered NFT collectible project consisting of rare and adorable characters residing on the Polygon network. It was initially on the Ethereum blockchain but the project was suffering from network congestion and high gas fees. Thus the developers decided to migrate their project to the Polygon network. Each of the Polygon NFTs appreciates in value when users buy wearables for them and expands their ‘kinship’ network. Additionally, the Polygon NFT holders can stake their $GHST tokens and participate in NFT raffles.  

4] Thats Gross

Thats Gross is a collection of 4500 algorithmically generated unique collectibles with a random combination of skins, accessories, backgrounds and more. These Polygon NFT holders will have multiple benefits starting with exclusive access to the Thats Gross Club. Club members will have their own Discord servers, access to future NFT drops, and special benefits in Decentraland and Sandbox. Moreover, the Polygon NFT holders can breed their NFTs, stake their assets, play games, and participate in protocol governance. 

Is Polygon (Matic) A Good Investment?

If you are new to the world of decentralized finance and therefore investing in MATIC and DeFi coins, you might be wondering if Polygon is a good investment, or should I invest in MATIC? 

Well, based on fundamental and technical analysis, several analysts and experts believe Polygon is likely a good investment, and investing in Polygon (MATIC) as one of the best high-yield assets is one of the best decisions you could ever make.

As the novel token powering Polygon, MATIC has increased substantially since 1st January 2021. From a thorough assessment of its price history in the first six months of 2021, MATIC reaching an all-time high of $2.68 on Tuesday, 18th May is significant evidence that the digital asset is not slowing down. This is the primary reason why most experts think MATIC has plenty of room for growth based on the continued success of Ethereum that makes its issuing authority, Polygon, stay relevant as a layer-2 scaling solution. 

Others believe that investing in Polygon (MATIC) is one of the smartest decisions any novice or experienced investor can make with an eye on the long term. Therefore, 2022 could be the right time to invest in Polygon (MATIC) while the coin is not only performing well but trades at a relatively smaller price than other competing digital currencies. 

One of the biggest reasons to invest in Polygon is a potential enrollment as a product of Grayscale. In June 2021, Grayscale announced that Polygon’s MATIC is one of the digital assets they are considering adding to their existing products. 

If this goes through in the months leading up to the end of the year, MATIC will increase like other cryptocurrencies such as XLM and MANA which spiked in price when Grayscale launched them. But that is one of the tens of reasons why investing in Polygon (MATIC) could be profitable. 

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