Polygon (MATIC)

Modified on:


What is Polygon?

Polygon is a protocol that serves as the infrastructure for building and connecting Ethereum-compatible blockchains. Its first aim is to add scalability to Ethereum and reduce the cost per transaction. MATIC is Polygon's native token, that can be purchased as a crypto-asset, but also used as a utility token to perform functions in Polygon, like voting for improvements on the protocol, or even staking. The project is governed and maintained by its users. The MATIC token is currently (January 2022) part of the top fifteen cryptocurrencies by market capitalization and can be purchased and traded on Bitso.

 

What makes it unique?

  • Building bridges isn't new in the crypto universe. What Polygon does differently is to build a bridge from inside out Ethereum. It uses technologies, such as sidechains and plasma chains, to speed up the bridging process from Ethereum to other blockchains;

  • Besides being a bridge, it also affords dApps and decentralized finances to run on top of it instead, while still recording and securing all transactions on Ethereum's Mainnet due to the rollup technology;

  • Polygon has its own chain, called Matic PoS, which is secured by the proof-of-stake mechanism. Users that hodl and stake MATIC can help double-secure the transactions that occur on Polygon.

 

Purpose

Ethereum is currently the largest platform for smart contracts, which means it has the largest amount of dApps and crypto projects running on top of it. However, these projects can't always connect among themselves, and all of them struggle with the high-fees and low-velocity of Ethereum when the network is too loaded. Polygon aims to become the Ethereum's Internet of Blockchains, by connecting Ethereum with other chains, reducing it's load, and also providing better fees and better velocity to projects while keeping them safe and sound by having Ethereum as its main chain to record transactions.

 

Sources of knowledge


Was this useful?