Polygon (prev. MATIC) Price POL

What is Polygon?

Polygon (formerly Matic Network) is a Layer 2/sidechain solution that enables users to access Ethereum applications (DApps) at reduced cost and with minimal latency. While conducting their research, the Matic Network team came across a publication by Ethereum co-founder Vitalik Buterin and Lightning Network co-founder Joseph Poon. This publication detailed a new scalability solution: Plasma.

This solution involves duplicating a parent blockchain, which can be copied more quickly while maintaining security. The Plasma solution will form the basis of the Matic blockchain. In early 2021, Matic Network became Polygon. This redesign signals a shift from a single blockchain to an aggregator of scalability solutions for Ethereum, and is much more than a name change. Any developer can create a scalable blockchain here.

How Does Polygon Work

The number of transactions that may be processed in a single second by the Ethereum blockchain is restricted. During times of heavy network traffic, the gas prices associated with each transaction could rise beyond the 14 transactions per second that the Ethereum network’s foundational layer is capable of processing. The fast increase to $50 or $80 each transaction in petrol prices makes it unaffordable for most customers. The Ethereum blockchain is less appealing to users because to its slowness caused by high network congestion.

Thus, the fees associated with purchasing non-fungible tokens (NFTs), utilizing decentralized finance (DeFi) applications and protocols, and trading, purchasing, or transferring tokens on Ethereum can swiftly accumulate to hundreds of dollars.

Transaction processing on different sidechains is one of the scaling methods offered by Polygon. Polygon has a significant advantage over Ethereum, which can only perform about 17 transactions per second, with a capacity of 65,000. In addition, compared to Ethereum’s average transaction price of almost $15, Polygon’s fees are significantly lower, costing only a few pennies.

In order to provide users with the greatest scaling option for their individual use case, Polygon has built multiple protocols that give different sorts of zero-knowledge proofs (zk). Zero knowledge proofs are a primitive in cryptography that allows another person, the verifier, to determine if a statement is valid without requiring extra information.

A number of integration solutions are available in Polygon, including zk rollups, optimistic rollups, proof-of-stake (PoS) blockchain bridges, and plasma sidechains. In this example, the main blockchain is Ethereum, and there are also plasma sidechains, which are more safe and less heavy. Because of the PoS bridge, decentralized applications (DApps) can be built on one platform while retaining the benefits of other platforms.

Polygon is a technique that groups transactions off the main blockchain, making Ethereum faster and lighter. Zk rollups allow for the off-chain processing of transaction groups and the creation of validity proofs prior to their transmission to the main blockchain. Because of this, the primary chain stores less data. Optimistic rollups employ a fraud-proof protocol to validate legitimate transactions and punish dishonest ones.

Polygon is cognizant of the fact that factors like speed, sovereignty, transaction fees, and security are all up for grabs when deciding on a scaling solution. As a result, developers have a lot of options when it comes to scaling solutions, and Polygon provides a full array of options.

What is the POL token?

POL is the native cryptocurrency of the Polygon network, a Layer 2 scaling solution that speeds up and lowers the cost of Ethereum transactions and decentralized applications (dApps). It acts as the primary token for fees, staking (Proof-of-Stake), governance and securing the network. POL is the upgraded, next-generation version of the former POL token. POL is designed to support a vast ecosystem of interconnected blockchains (zk-rollups) and enhance interoperability. It empowers users to earn rewards for securing data and decentralising transaction sequencing.