What is Polygon Blockchain? How MATIC works and why it matters; Explained
Polygon blockchain is an Ethereum layer-2 scaling solution that enables faster and cheaper transactions. It reduces transaction costs and increases transaction speed by combining technologies such as Plasma, Optimistic Rollups, ZK-Rollups and Validium. Polygon also enables developers to create and distribute their own custom blockchains based on Ethereum.
Polygon can be compared to a subway express train in that it runs the same route as the regular train, but makes fewer stops and thus moves much faster. Polygon uses a variety of technologies to build this fast parallel blockchain and connect it to the main Ethereum blockchain.
Polygon uses a proof-of-stake consensus mechanism to generate new MATIC and secure the network, meaning that staking is a way for you to monetize the MATIC you own.
Polygon is a multi-layered platform that aims to expand Ethereum by using a variety of sidechains to unclog the main platform in a cost-effective and efficient manner. Sidechains are separate blockchains connected to the Ethereum blockchain that can support a variety of Decentralized Finance (DeFi) protocols. Polygon can thus be connected to networks such as Polkadot, Cosmos and Avalanche.
The sidechains are linked to the main chain and rely on PoS checkpoints to ensure their integrity. When a user initiates a transaction, it is sent to the sidechain and verified by a group of validators. The transaction is sent to the main chain when it is accepted. This method allows the transaction to be settled quickly, securely and at a low cost.
These custom blockchains, also known as MATIC chains, are secured by the Ethereum main chain and can be used to create decentralized applications (dApps) and tokenized assets. In particular, layer-2 solution can be defined as the security of this type of off-chain solution derived from Mainnet Ethereum. Layer 2 refers to solutions designed to help scale your application by handling transactions outside the Ethereum Mainnet (Layer 1) while leveraging the Mainnet’s robust decentralized security model.
What is MATIC?
MATIC, a cryptocurrency owned by Polygon, is used for governance, staking and fee payments on the Polygon network (meaning MATIC holders get to vote on changes to Polygon). The term MATIC goes back to an earlier phase of Polygon’s growth. Developers changed their name to Polygon in early 2021 after starting operations as MATIC Network in October 2017.
MATIC Network is a layer-2 scaling solution that uses a modified version of Plasma with PoS-based sidechains. This enables transactions that are almost instantaneous, affordable and scalable. The main chain maintains its permissionlessness and autonomy while providing Ethereum’s security guarantees.
Why MATIC is important
MATIC works with the Ethereum Virtual Machine (EVM). Polygon is also easy to use for developers familiar with Ethereum. Polygon has a security layer that can be enabled or disabled, allowing sovereign platforms to forego additional security while retaining their freedom and flexibility.
MATIC tokens can be used to participate in network governance and vote on Polygon Improvement Proposals.
Current polygon value (MATIC)
Polygon’s current price is $0.935154 USD, with a 24-hour trading volume of $236,195,947 USD. Polygon has increased by 2.74% in the last 24 hours. The direct market cap of $8,167,934,046 USD. There are 8,734,317,475 MATIC Coins in circulation, with a max supply of 10,000,000,000 MATIC Coins.
