What Is Polygon (MATIC)? The First Platform For Ethereum Scaling


What Is Polygon (MATIC)?

Polygon is the first and only well-structured and simple-to-use platform available for Ethereum scaling and infrastructure development. The Polygon SDK is the foundation of the system; it is a modular and extensible framework that can be used to develop a wide range of different types of applications.

Polygon has already attracted more than 50 DApps to its platform, according to the company. Polygon (formerly known as Matic) made its official debut in October 2017. In addition to being backed by the corporation, MATIC is an ERC-20 token that runs on the Polygon network.

For Ethereum scaling and infrastructure development,

Polygon successfully converts Ethereum into a fully functional multi-chain system (aka Internet of Blockchains). This multi-chain system is similar to others such as Polkadot, Cosmos, Avalanche, and so on, but it has the benefits of Ethereum’s security, dynamic ecosystem, and openness over the competition.

The $MATIC token will continue to exist and will play an increasingly essential role in the system’s security and governance, as well as in the development of new technologies.

In addition to Binance and Coinbase, Polygon (previously Matic Network) is a Layer 2 scaling solution endorsed by others. The project’s goal is to encourage widespread adoption of cryptocurrencies by addressing the issues of scalability that have arisen on many blockchains.

Polygon Matic
Credits: Polygon Network

Polygon’s Blockchain Architecture

Polygon is a blockchain architecture that blends the Plasma Framework with the proof-of-stake blockchain architecture. Using the Plasma framework, which was created by Vitalik Buterin, co-founder of Ethereum, to execute scalable and autonomous smart contracts, Polygon has made it simple to execute smart contracts.

Regarding the current ecosystem, which is based on the Plasma-POS chain, nothing will change. By incorporating new capabilities into the current established technology, Polygon is enhancing its ability to meet the demands of developers across a broader range of verticals and geographies. It is expected that Polygon would continue to enhance the basic technology in order to expand it to a bigger ecosystem.

A single-side chain can handle up to 65,000 transactions per second, and the block confirmation time is less than two seconds, making Polygon an excellent choice for high-volume transactions. The platform also enables the development of globally accessible decentralized financial apps on a single underlying blockchain, which is called the foundational blockchain.

Polygon in the Decentralized Apps World

Polygon has the ability to host a limitless number of decentralized apps on its infrastructure thanks to the Plasma framework, which eliminates the need for them to deal with the usual problems associated with proof-of-work blockchains. So far, Polygon has attracted more than 50 DApps to its Ethereum sidechain, which is protected via Proof of Stake (PoS).

MATIC, the native tokens of Polygon, is an ERC-20 token that runs on the Ethereum blockchain and is backed by the company. Users that operate inside the Polygon ecosystem may use the tokens to pay for goods and services on the platform, as well as to settle financial transactions between them. Transaction fees on Polygon sidechains are likewise paid in MATIC tokens, as are the transaction costs on the main Polygon blockchain.

Polygon Matic
Polygon Network

Polygon’s History

Polygon (formerly known as Matic Network) was officially launched in October 2017. A business consultant, two experienced blockchain developers, and one experienced blockchain developer came together to co-found Polygon with Sandeep Nailwal and Anurag Arjun to form Polygon.

The Polygon team was a significant contributor to the Ethereum ecosystem prior to its migration to its own network in 2019. It was the team’s responsibility to work on integrating the Plasma MVP and the WalletConnect protocol, as well as the widely-used Dagger event notification engine, on the Ethereum blockchain.

Jaynti Kanani, co-founder of Polygon, was a member of the group. Polygon’s CEO, Jaynti, is a full-stack developer and blockchain engineer who has worked for many startups.

Jaynti was a key contributor to the development of Web3, Plasma, and the WalletConnect protocol on the Ethereum platform. Jaynti previously worked as a data scientist at Housing.com, where he learned about blockchain technology.

Sandeep Nailwal, co-founder and chief operating officer of Polygon, is a blockchain programmer and entrepreneur who has worked on many projects. Sandeep had previously worked as the CEO of Scopeweaver and the chief technical officer of the Welspun Group before joining forces to co-found Polygon (formerly Matic).

Anurag Arjun is the only co-founder of Polygon who does not have a background in programming. Previously, he worked as a product manager for companies such as IRIS Business, SNL Financial, Dexter Consultancy, and Cognizant Technologies.

Polygon and Ethereum’s London Fork

A new announcement from Polygon has confirmed that the highly anticipated London Hard Fork and Ethereum Improvement Proposal (EIP) 1559 update will be made available to the public on January 18, 2022, on the mainnet. When the upgrade is completed, it will entirely alter the way the Ethereum network’s fee mechanism operates; it will do away with the first-price auction as the primary method for calculating fees and instead utilize a base fee that is burnt rather than distributed to miners. The fact that it does not cut transaction fees, but rather makes it more steady, allows customers to more accurately predict expenses and minimize overpaying.

The London Hard Fork of the Ethereum network went live on August 5, 2021.
However, since MATIC tokens are being burnt as base fees — and because MATIC has a fixed quantity of 10 billion tokens — the digital asset will have a deflationary impact as a result. Polygon’s core team predicted that the token’s yearly burn would equal to 0.27 percent of the token’s entire supply — or around 27 million tokens — every year.

Due to the fact that the benefits for processing transactions on Polygon are priced in MATIC, this deflationary pressure will most likely be beneficial to validators and delegators the most. Furthermore, after the block has been completely filled, the basic cost will automatically rise, resulting in fewer spam transactions and reduced network congestion overall. 

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