The Ethereum blockchain is one of the most established crypto networks today. Its native token, Ether (ETH), is the world's second-largest cryptocurrency by market capitalization. The blockchain is used to create crypto and decentralized applications or dApps. Through Ethereum, developers and users can write smart contracts. These agreements are written in code specific to the blockchain platform.
One limitation, though, is that it can't cope with the volume of activity on the network. It has a speed of 15 transactions per second, which is tediously slow. In contrast, some of its competitors can process 250 transactions per second. Processing on Ethereum can also be expensive because of the high gas fees. These factors hinder scalability, and it’s here that Polygon can make a difference.
In this article, we'll share the origins of Polygon (MATIC). We'll also discuss what it is and how you can get started in your Matic token investment.
What is Polygon (MATIC)?
Polygon (MATIC) or Polygon is a type of Layer 2 solution, which enables other blockchains to scale apps. This is through the off-chain processing of transactions. The entire time, they remain connected to the main chain.
Each Polygon blockchain has its own features and functionalities independent of Ethereum. This facilitates processing outside of the main net. At the same time, it can leverage the security and decentralization protocols of Ethereum if the Polygon blockchain decides it's necessary. This flexibility speeds up processing times and reduces the expenditure on gas fees.
The chains built on the Polygon blockchain revolve around Matic coins, the native token of the network. With this Polygon coin, you can regulate, stake, and pay gas fees. These transactions don't need routing through the entire Ethereum platform.
How did Polygon start?
In 2017, Jaynti Kanani, a data scientist working at Housing.com, caught sight of a "weak link" in the Ethereum blockchain. At that time, the NFT project Cryptokitties was huge. Unfortunately, the overwhelming activity from the project congested the network. Processing times took so long, and the gas fees were exorbitant. These limited the volume and size of transactions. Additionally, these also led to security, efficiency, and usefulness issues.
Kanani got in touch with Sandeep Nailwal, a blockchain developer, and Anurag Arjun, a business consultant. The three joined forces and launched Matic in October 2017. The decentralized platform they designed sought to address the scalability problem of Ethereum.
Later on, its scope was expanded with more ambitious goals. At the same time, they maintained the original mission, which was scalability within the Ethereum platform. Thus, in February 2021, the platform underwent rebranding to reflect the new direction. They changed from Matic to Polygon and also decided to keep the Matic name for its native crypto token.
How does Polygon (MATIC) work?
You can think of the Polygon network as a four-layer stack of lego bricks. The first one at the bottom is the Ethereum layer. Next are the security layer, the Polygon networks layer, and the execution layer. It uses smart contracts to enable cross-chain transactions.
The connecting technology is the Polygon bridge, a two-way trustless channel (no third party involved) between Polygon (the child chain) and Ethereum (the root chain). The structure is set up so that the Polygon chains can operate independently off-chain without overworking the parent chain. This reduces time and cost.
There are two main types of Polygon bridges: the PoS Bridge and the Plasma Bridge.
Polygon Plasma Bridge
The Plasma Bridge uses the Ethereum Plasma scaling solution with an exit mechanism that bolsters security. However, this feature also entails a longer transfer time of up to seven days. Thus, the Plasma Bridge may be more beneficial to developers than users. This technology facilitates the transfer of Matic, ETH, ERC-20 tokens (Ethereum-based), and NFTs.
PoS (Proof-of-Stake) Bridge
Although it doesn’t have the same protection guarantee of the Plasma exit mechanism, The PoS Bridge adopts the PoS consensus mechanism to secure its network. This technology, run by external validators (on top of Ethereum), allows the faster deposit and withdrawal of tokens and NFTs. The robust level of protection from the PoS Bridge can satisfy the requirements of many DApps and integrations. This makes the PoS Bridge ideal for users who can transact within the maximum transfer time of three hours. This technology facilitates the transfer of ETH and most ERC-20 tokens.
How do you buy Polygon (MATIC) crypto?
You can buy Polygon (MATIC) and other cryptocurrencies in Exodus, in any way you prefer:
- Use a credit / debit card, bank account, or Apple Pay. The easiest payment gateway, Ramp or MoonPay, is chosen for you depending on your region and availability.
- Exchange Bitcoin and 200 other cryptocurrencies for Polygon (MATIC) using the built-in exchange app
- Link your Exodus wallet with the FTX exchange for even more options
The Bottom line
Beyond simple fund transfers, the Polygon blockchain enables a growing range of real-world use-cases. These include decentralized exchanges, efficient analyses of users' credit ratings (for lending platforms), and better gaming.
With the Polygon chain and Polygon coins, developers can launch amazing products faster. Users like you can be more confident, knowing they can transact more securely and efficiently.
Another way you can boost the security of your Matic coins and other digital assets is via Exodus. This next-level wallet can help you secure pro-level control to manage your cryptocurrency in one beautiful application. Exchange and transfer digital assets, explore the worlds of Web3 and DeFi, and learn how easily you can earn interest.
Check out Exodus and discover how you can do so much more with your wallet, today.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.
