What Is Polygon (MATIC)?

BeginnerAug 31, 2022
Layer-2 Solutions And an excellent platform
What Is Polygon (MATIC)?

Cryptocurrency is on the rise with more people entering this digital space daily. There are many different platforms in cryptocurrency with bitcoin, Ethereum, and dogecoin being the most notable. Polygon is a network that is used in the Ethereum Blockchain.
Polygon is a layer-2 scaling solution that was created to transcend some of the common limitations associated with Ethereum Blockchain. Upon its release in 2017, it was initially known as Matic, a name many still associate it with to date. It was intended as a scaling solution but has evolved to be one of the most popular multipurpose ecosystems. To further understand polygon, we may need to understand what a layer-2 scaling solution is.

Layer-2 Solutions And Their Use

A layer-2 Solution is a Blockchain on its own but runs alongside another mainnet to improve transactions. In the case of polygon, the mainnet in question is Ethereum. Layer-2 solutions are essentially secure bridges that enable communications between two blockchains. While not the mainnet, a layer-2 solution is usually faster than the mainnet and requires less transaction (gas) fees.
With dApps in high demand, mainnets tend to be overcrowded, thus resulting in low throughputs. Ethereum has become particularly crowded thanks to security and innovation. One side effect of this traffic is slow transactions and exuberant transaction fees. In some cases, it can be as many as three digits in dollars. This makes trading in Ethereum somewhat limiting, especially to newcomers. Polygon, a Layer-2 solution, makes dealing on the Ethereum Blockchain both quicker and cheaper. Those who can put up with the fees can proceed, while others have an alternative in Polygon.

How Does Polygon Work?

On an entry-level, polygon simply gives you access to the Ethereum Blockchain. Polygon also benefits from the protocols, security, and innovativeness of Ethereum. Since its inception, Polygon has evolved into a platform capable of creating and launching interoperable Blockchains.
The Ethereum Blockchain is already impressive, but polygon helps take it to a new level. By improving on the already impressive features in the marketplace, trading becomes more impressive. Thanks to its modified proof-of-stake mechanism, your transactions will be both faster and cost less.

The Matic Token

Matic is the official currency of polygon and the key to all transactions. Matic, like most crypto tokens, has a maximum limit (10 billion). As of 2022, there are about 7.5 billion tokens already in circulation. It may not be the most popular crypto token but has some impressive feats. After Polygon’s rebrand, the price of Matic saw a significant rise with a rise in users.

Pros Of Using Polygon

Polygon has several advantages to offer, making it valuable for anyone who wishes to enter the world of Ethereum. Some of the pros associated with Polygon include:

Transactions are faster
There is nothing more frustrating in the cryptocurrency market. With the volatility of the market, every second counts. Due to overcrowding in the mainnet, transactions can sometimes take longer, which can cause losses. Polygon on the other hand operates faster, seeing as transactions occur outside the mainnet. Fast transactions on polygon are possible thanks to the consensus mechanism which makes confirmations easier. On average, completing a transaction on polygon takes just over 2 seconds.

It Minimizes Costs
One of the biggest limitations of trading on the mainnet is the risk of transaction fees running high. Transaction fees are typically dependent on the transaction amount, but can still prove to be too much. On polygon, you won’t have to worry about high transaction fees, with transaction fees usually less than $1. On average, the transaction fee is around $0.01, making polygon ideal for small transactions. As a newcomer to the Ethereum Blockchain, Polygon will prove to be more favorable.

It has a Unique Token
Polygon has its unique crypto-token, Matic, which is the central currency used here. You will still be transacting in the Ethereum marketplace, but not in Ethereum. A rise in the value of Matic will also mean a rise in the value of your holdings.

Cons of Using Polygon

It may come with a lot of perks but polygon is far from perfect. There are a few negatives that are associated with polygon including:

There is no Autonomy
Polygon is a complex platform but it has one major limitation, it is linked to the Ethereum Blockchain. While it functions independently, polygon requires the Ethereum marketplace to function. In this regard, the fate of polygon is inexplicably linked to the Ethereum Blockchain. If the platform is down or stops to exist, then so will Polygon.

It doesn’t have a high Circulation
While it is helpful in the Ethereum marketplace, polygon’s currency Matic’s use is mostly limited. It may be an independent currency, but it isn’t as used as others in circulation. Not all daily transactions involve Matic, as opposed to other prominent crypto tokens.

What can you do with polygon?

Polygon can do anything you can do on the Ethereum mainnet. Thanks to its continuous rise in popularity, different marketplaces already recognize Polygon. While you will still be trading in the Ethereum mainnet, all your transactions will be processed through Polygon. You should however note that you may still have a few limitations. Some Ethereum protocols don’t yet have counterparts on Polygon. With Polygon constantly evolving, however, the protocols are sure to expand.

First Of Its Kind
With so many Blockchain platforms available, it is easy to get drawn to popular names. Polygon is a unique platform in many ways, making it ideal especially for newcomers. One of the most impressive features of Polygon is its optional security protocol. While it has an impressive security protocol, Ethereum’s security protocol is still in use. Ethereum retains its self-sovereignty, but can still use polygon’s security protocols. Seeing as Polygon improves on Ethereum’s protocols, it makes the security all the more impressive.

Conclusion

Polygon may still be a majorly unknown platform, but it is surely on the rise. Thanks to the rise of Matic and its newfound attention, the future is bright for Polygon. Matic also happens to be one of the most stable coins, even surviving market crashes. When coupled with all its impressive features, Polygon is an excellent platform.

Layer-2 Solutions And Their Use

How Does Polygon Work?

The Matic Token

Pros Of Using Polygon

Cons of Using Polygon

What can you do with polygon?

Conclusion