POL (ex-MATIC) (POL)
Polygon, formerly known as Matic Network, is a decentralized Ethereum scaling platform that enables developers to build user-friendly decentralized applications (dApps) with low transaction fees and without sacrificing security. It aims to improve the scalability and usability of the Ethereum blockchain while maintaining its security and decentralization.
History of Polygon
Polygon was initially launched as Matic Network in 2017 by a team of Indian developers: Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. The project was initially focused on providing Plasma chains, a framework proposed by Ethereum co-founder Vitalik Buterin and Joseph Poon. In February 2021, the team announced a rebranding to Polygon in order to expand its scope from a single-layer scaling solution to a multi-chain system akin to Polkadot, Cosmos, or Avalanche, but with Ethereum's inherent security.
| Ticker | POL |
| Category | Smart Contract Platform |
| Website | https://polygon.technology/ |
| @0xPolygon | |
| Telegram | polygonofficial |
| https://www.reddit.com/r/maticnetwork/ | |
| Contract Addresses | |
|---|---|
| ethereum | 0x45...f6 Copied! |
| polygon-pos | 0x00...10Copied! |
Transition from Matic to Polygon
The rebranding to Polygon marked a significant shift in the project's vision. While Matic Network concentrated on Layer 2 scaling solutions using Plasma chains and a Proof-of-Stake (PoS) sidechain, Polygon broadened its approach to include not only PoS chains but also other Layer 2 scaling solutions like zk-Rollups, Optimistic Rollups, and Validium. This transition aimed to provide developers with a comprehensive framework to build and connect Ethereum-compatible blockchain networks.
How Polygon works
Polygon operates as a Layer 2 scaling solution that enhances Ethereum's scalability by handling transactions off-chain while still utilizing the Ethereum mainnet for finality and security. This is achieved through its unique architecture, which allows for faster processing speeds and reduced transaction costs.
Polygon architecture
Polygon's architecture consists of several key components:
Polygon SDK: This modular and flexible framework supports the development of multiple types of applications, including optimistic rollup chains, zk-rollup chains, and standalone chains, among others.
Consensus Layer: Polygon uses a Proof-of-Stake mechanism where validators are chosen based on the number of tokens they hold and are willing to "stake" as collateral.
Security Layer: Although optional, this layer provides additional security by using Ethereum's mainnet as a base layer for consensus.
Execution Layer: This layer handles the execution of smart contracts and transactions, providing a scalable solution for dApp developers.
Polygon's scaling solutions
Polygon supports several types of scaling solutions to enhance Ethereum's performance:
Plasma Chains: These chains are designed for specific use cases with high throughput but limited functionality, suitable for simple transfers.
zk-Rollups: These are Layer 2 scaling solutions that increase throughput without compromising security by bundling multiple transactions into a single transaction using zero-knowledge proofs.
Optimistic Rollups: These solutions rely on fraud proofs to ensure transaction validity, allowing for scalable and secure transaction processing.
Sidechains: These are independent blockchains that run parallel to the Ethereum mainnet, providing increased scalability and flexibility for developers.
Use cases and applications
Polygon's scalability and versatility have made it an attractive platform for a wide range of applications. It is especially popular in sectors requiring high throughput and low transaction costs, such as decentralized finance (DeFi), gaming, and non-fungible tokens (NFTs).
DeFi applications
Polygon has become a hub for DeFi applications due to its ability to offer low-cost transactions and high-speed processing. Many DeFi projects have migrated to or launched on Polygon, taking advantage of its robust infrastructure to offer services such as lending, borrowing, and yield farming.
Gaming and NFTs
The gaming industry and NFT marketplaces have also embraced Polygon for its ability to handle large volumes of transactions at minimal cost. This is crucial for applications where users frequently interact with the blockchain, such as buying, selling, and trading digital assets or in-game items.