Polygon, formerly known as Matic Network, is a framework for creating linked blockchain networks. It uses a revolutionary sidechain mechanism to overcome some of Ethereum's key shortcomings, such as throughput, bad user experience (high speed and delayed transactions), and a lack of community control. Polygon, unlike its predecessor Matic Network, which employs a technology called as Plasma to process transactions off-chain before confirming them on the Ethereum main chain, is meant to be a full platform for building interoperable blockchains. Developers may use Polygon to establish pre-configured blockchain networks with attributes customized to their specific need. These may be further modified with an expanding set of modules, allowing developers to build sovereign blockchains with more particular capabilities.

How it works

Polygon's architecture is best described as a four-tier system made up of the Ethereum layer, the security layer, the Polygon networks layer, and the execution layer.

The Ethereum layer is simply a collection of smart contracts built atop Ethereum. Transaction finality, staking, and communication between Ethereum and the multiple Polygon chains are all handled by these smart contracts. The security layer operates alongside Ethereum and offers a validator as a service function, allowing chains to benefit from an extra layer of security. Ethereum and Security are both optional levels.

There are two required levels after this. The first is the Polygon networks layer, which is the ecosystem of Polygon-based blockchain networks. Each of them has its own community and is in charge of local consensus and block production. The second layer is the Execution layer, which is Polygon's Ethereum Virtual Machine (EVM) implementation for smart contract execution.

Polygon-based chains may communicate with one another as well as the Ethereum main chain due to Polygon's arbitrary message passing features. This will open the door to a slew of new use-cases, including interoperable decentralized applications (dApps) and the simple exchange of currency between platforms.

MATIC token

Despite the fact that Polygon has significantly expanded on Matic Network's goal, it still employs the same utility token, known as MATIC. The MATIC token is utilized in the Polygon ecosystem for a number of functions, including network governance through voting on Polygon Improvement Proposals (PIPs), contributing to security through staking, and paying gas costs. As of March 2021, it is unclear whether the MATIC coin will have any extra use in Polygon's larger vision.

Why it is special

The Polygon project is one of the more recent attempts at blockchain interoperability and scalability, with the goal of addressing some of the apparent shortcomings of interoperability initiatives like Polkadot and Cosmos. Iit's compatible with the Ethereum Virtual Machine, making it accessible to individuals who are used to creating apps on Ethereum and programming in Solidity; Cosmos, on the other hand, employs a WASM-based virtual machine.

There have been few projects already launched with using the Polygon technology, which includes Aavegotchi (a DeFi trading game) and EasyFi (a decentralized borrowing and lending platform).