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@ croxroadnews
2024-03-05 01:40:30Table of Content
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Content
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Introduction
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Who Created Polygon?
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How Does Polygon Work?
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Why Does MATIC Have Value?
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Architecture
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Why Use MATIC?
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Conclusion
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FAQ
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You May Also Like
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External Links
Introduction
Ethereum, a platform that is home to a variety of decentralized apps, is at the core of Polygon's concept. These applications include ones that allow users to join virtual worlds, play games, purchase artwork, and take part in a variety of financial activities. But because there is so much activity on Ethereum's blockchain, the platform is almost useless because the cost of sending data is going up and there is a growing backlog of traffic.
Enter Polygon. In a nutshell, Polygon markets itself as a layer-2 network, which indicates that it functions as an add-on layer to Ethereum and does not intend to replace the original blockchain layer. In other words, Polygon is not trying to reinvent the blockchain. The polygon, like the physical form that it was named after, has numerous sides, many shapes, and different functions. It also provides a simpler foundation for the construction of linked networks.
Polygon aims to assist Ethereum in growing in terms of scale, security, efficiency, and utility. Also, the company wants to encourage developers to make products that are more appealing and bring them to market faster.
Following the renaming, Polygon continued using the MATIC cryptocurrency, the digital token that serves as the basis for the network. When members of a network communicate with one another, the MATIC cryptocurrency serves as the unit of payment and settlement for such transactions.
Who Created Polygon?
Polygon was once referred to as the Matic Network when it was initially established in India in 2017. They (Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun), together with Mihailo Bjelic, are all seasoned Ethereum engineers, and they are the ones who came up with the idea.
The Matic Network became online in the year 2020 and has already attracted some of the most well-known names in the field of decentralized finance, generally referred to as DeFi. These names include MakerDAO and Decentraland. In February of 2021, the Matic Network changed its name. It is now called Polygon.
During the first offering that took place in April 2019, the Polygon team was able to raise the equivalent of $5.6 million in ETH by selling 1.9 billion MATIC tokens over the course of a frenetic 20-day period.
How Does Polygon Work?
Polygon is a multi-level platform with the goal of scaling Ethereum owing to a multitude of sidechains, each of which attempts to unclog the main network in a way that is both effective and cost-efficient. Polygon's primary goal is to grow Ethereum.
For those of you who are new to the term, sidechains are individual blockchains connected to the main Ethereum blockchain. Sidechains are useful in that they enable many of the Decentralized Finance (DeFi) protocols that are accessible on Ethereum.
As a result, it is possible to compare Polygon to other networks that compete with it, such as Polkadot, Cosmos, and Avalanche.
Why Does MATIC Have Value?
The native coin of the Polygon network is called MATIC. In addition to being staked and used to pay transaction fees, MATIC is also utilized to assist drive growth throughout the network.
Users that provide computing resources or services to the Polygon network are eligible to get MATIC tokens as a reward. Validating transactions or carrying out smart contracts on the network are two possible ways to accomplish this goal.
In addition, users who hold MATIC and stake it are granted the power to vote on network enhancements, with the weight of each user's vote being directly proportionate to the amount of MATIC cryptocurrency they stake.
As is the case with the vast majority of other crypto assets, the supply of MATIC tokens is finite. According to the program's rules, there will never be more than 10 billion MATIC coins in circulation.
Architecture
At the center of the Polygon network is the software development kit (SDK) that is used to build decentralized apps that work with Ethereum as sidechains and connect them to the main blockchain of the network.
Sidechains can be made using any of the following scalable building methods:
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Plasma Chains - Transactions are grouped into blocks, and then the blocks are submitted to the Ethereum blockchain.
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zk-Rollups - Makes it possible to combine many different transfers into a single transaction.
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Optimistic Rollups - Similar to Plasma Chains, but with the ability to scale Ethereum smart contracts.
The primary chain of Polygon is a Proof of Stake (PoS) sidechain. Participants in the network can use MATIC tokens to verify transactions and vote on updates to the network.
Why Use MATIC?
It is possible that the potential of the Polygon Network to give scaling solutions to Ethereum would attract supporters of the network. Developers could also use Polygon's technology to make decentralized applications (dapps) on the network's blockchain easier to use.
All of Sushi, a decentralized exchange platform; Augur, a prediction market platform; and Ocean Protocol, a platform that enables companies and people to trade and monetize data and data-based services, are examples of dapps that are built on Polygon.
If investors feel that Layer-2 solutions are the way to go to improve the Ethereum Network, they can also look into purchasing MATIC and adding it to their portfolio.
Conclusion
There aren't many DeFi projects as intriguing as Polygon, and its future prospects for scalability and blockchain compatibility bode well for the DeFi community as a whole. And since it comes with such a comprehensive collection of tools for developers, its forward-thinking mechanisms and modules, and complete support for the Ethereum Virtual Machine (EVM), the Polygon ecosystem may soon be home to a great number of successful applications.
FAQ
Is Polygon Matic a good investment? Polygon, on the other hand, is a cryptocurrency asset that may give investors the potential to make substantial gains if they hold it for longer. The price prediction for Polygon (MATIC) shows that the value of this cryptocurrency asset will rise over time, which is what the experts above have said will happen.
What does Polygon Matic do? Polygon (MATIC) is a cryptocurrency and technological platform developed to connect and grow blockchains and projects that are compatible with Ethereum. Investors may purchase MATIC tokens on exchanges like Coinbase and Kraken to use them for governing and securing the Polygon network as well as paying transaction fees. MATIC tokens are also used to pay for those fees.
Is Polygon Network the same as Matic? Polygon is a cryptocurrency that was established in 2017 and was originally known as Matic Network. It has a fair amount of popularity and consistently places among the top 15 cryptocurrencies in terms of market value. MATIC now supports more than 7,000 decentralized apps, often known as dApps. These are applications that function independently of any middlemen.
Does Polygon Matic have a future? According to the findings of a recent technical study conducted by cryptocurrency industry professionals about the pricing of Polygon, it is anticipated that MATIC will have a minimum price of around $1.83 and a maximum price of approximately $2.22 in the year 2024. The anticipated cost of trading, on average, is $1.89.
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