Polygon, previously known as Matic Network, is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It aims to address some of the prominent challenges faced by the Ethereum blockchain, such as its scalability and usability, while still leveraging the security and interoperability of the Ethereum ecosystem.
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 rebranded to Polygon in February 2021, as part of a strategic evolution to expand its scope beyond a single Layer 2 solution on Ethereum. The rebranding marked the project's expansion into a multi-chain system, akin to other blockchain networks such as Polkadot and Cosmos, but anchored to Ethereum.
The Polygon network architecture
Layer 2 scaling solution
Polygon offers a Layer 2 scaling solution that achieves scalability by utilizing sidechains for off-chain computation, which helps reduce the load on the Ethereum mainnet. This results in faster transaction processing and lower transaction costs. It is designed to be an easy-to-use platform for Ethereum scaling and infrastructure development.
Multi-chain system
Polygon transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is similar to other blockchain ecosystems but benefits from Ethereum's robust security model and established network effects. The platform is designed to support a diverse array of decentralized applications (dApps) by allowing developers to create and connect Ethereum-compatible blockchain networks.
Security and interoperability
One of Polygon's key strengths is its ability to maintain Ethereum’s security while improving its scalability. It uses a proof-of-stake consensus mechanism to secure its sidechains and offers developers the ability to create interoperable blockchain networks that can communicate with each other and with the Ethereum mainchain.
The MATIC token
The native cryptocurrency of the Polygon network is the MATIC token. It is used for various purposes within the ecosystem, including paying transaction fees, participating in the network's proof-of-stake consensus, and contributing to the network's governance. MATIC tokens are also used to incentivize developers and users who contribute to the growth and maintenance of the Polygon network.
Use cases and applications
Polygon has been adopted by a wide range of projects and applications across different sectors. Its scaling solutions are particularly attractive for decentralized finance (DeFi) applications, gaming, and non-fungible tokens (NFTs), where high transaction throughput and low costs are critical. The network's flexibility and robust infrastructure have made it a popular choice for developers looking to build scalable and efficient dApps.