What is Polygon?

Polygon (formerly known as Matic Network) is a multi-chain scaling solution for Ethereum, designed to provide faster and cheaper transactions on the Ethereum blockchain. Launched in October 2017 by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, Polygon aims to solve the scalability issues of Ethereum without sacrificing its security. It enables Ethereum-compatible blockchain networks to connect and scale effectively, creating a multi-chain ecosystem of interconnected blockchains. MATIC, the native token of Polygon, is used for governance, staking, and paying transaction fees within the network.

How is Polygon useful?

Polygon is particularly useful for developers looking to build scalable decentralized applications (DApps) without being hindered by the high costs and slow transaction speeds of the main Ethereum network. By providing a framework for building and connecting Layer 2 infrastructure, such as Plasma, zk-Rollups, and Optimistic Rollups, Polygon allows for off-chain computation while ensuring assets' security through the Ethereum network. This enables DApps to operate more efficiently, with significantly lower transaction fees and faster confirmation times, enhancing the user experience for a wide range of blockchain-based applications.

How does Polygon work?

Polygon utilizes a modified proof of stake (PoS) consensus mechanism to secure its network and manage its sidechains. Developers can deploy preset blockchain networks with attributes tailored to their needs, including basechain modifications (Ethereum or others) and various consensus algorithms. The Polygon SDK, a modular, flexible framework, enables the building of multiple types of applications, using the best-suited scalability solutions that work seamlessly on top of Ethereum.

Transactions on Polygon sidechains are grouped together, validated by network validators, and then confirmed on the Ethereum main chain, significantly reducing the burden on the Ethereum network and allowing for much higher throughput. MATIC tokens are staked by validators as part of the consensus process, and token holders can also delegate their tokens to validators to earn staking rewards, contributing to the network's security and governance.

Major developments

• Rebranding to Polygon: The project rebranded from Matic Network to Polygon in February 2021, expanding its scope to create a multi-chain system akin to Polkadot on Ethereum, which marked a significant shift in its strategy and goals.

• Polygon SDK: The launch of the Polygon SDK was a pivotal development, enabling an easy way to create Ethereum-compatible blockchains and scaling solutions.

• zk-Rollups Implementation: Focus on enhancing transaction privacy and throughput.

• Partnerships and Integration: Polygon has formed strategic partnerships with numerous projects in the DeFi, NFT, and broader DApp ecosystem, enhancing its utility and adoption across the blockchain space.

• Ecosystem Growth: The network has seen substantial growth in its ecosystem, with hundreds of DApps, from DeFi platforms to games and NFT marketplaces, choosing Polygon for its scalability benefits.

Polygon's innovative approach to Ethereum scaling and infrastructure development has positioned it as an essential tool in the blockchain developer's toolkit, contributing significantly to the advancement of the decentralized web.

If you wish to buy Polygon, click here to enjoy the intuitive, user-friendly, and cost-effective crypto trading experience offered by BITmarkets.