As the world of cryptocurrencies and blockchains expands, several mechanisms have been created to resolve issues with other networks. Polygons fit under this category. What is Polygon (MATIC)? How does Polygon work? What is the purpose of Polygon? Let’s find out more closely with Cove Markets what Polygon is and information related to MATIC virtual currency right here.
What is Polygon (MATIC)?
The Internet of Blockchains for Ethereum is known as Polygon. It serves as a foundation for linking chains that are compatible with Ethereum. When the cost and time for each transaction on Ethereum are incredibly high, Polygon solves the scalability issue.
Other chains like Polkadot, Cosmos, and Avalanche may also include the “Internet of Blockchain” idea. Contrary to traditional Layer-1 chains, Polygon is a side-chain of Ethereum and thoroughly enjoys the benefits of Ethereum’s network effect.
Background of Polygon
In 2017, Polygon debuted as Matic Network. To address challenges with blockchain scaling and usability, Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun co-founded it. Traditional blockchains’ high transaction fees and latency might impede their adoption, technological efficiency, and user experience. For networks that can’t automatically grow as user activity rises, load-balancing can be performed through layer-2 scaling solutions or external networks.
Matic included a plasma-driven scaling strategy and Proof-of-Stake (PoS) sidechains to help Ethereum as user demand for the network rose. In 2017, Plasma was at the vanguard of blockchain scaling. Matic POS evolved as a well-known scalable choice for numerous applications.
In February 2021, Matic changed its name to Polygon to position itself as a Swiss Army knife for scaling solutions. Polygon will add Rollup and Validium functionality to its already functional Plasma/POS chain. The project is aware that a single solution by itself might not be able to grow Ethereum. Polygon aspires to play a vital role in providing the infrastructure to establish any of these systems. Multiple solutions may co-exist and help scale Ethereum collectively.
How Does Polygon Work?
Polygon can be pictured as an express train on a subway, traveling along the same route as the regular train but making fewer stops and thus moving much faster. (In this analogy, the main Ethereum blockchain is the local train.) Polygon uses various technologies to create this speedy parallel blockchain and link it to the main Ethereum blockchain.
Polygon uses a proof-of-stake consensus mechanism to make new MATIC and keep the network safe. One way to make money with MATIC you already own is to stake it.
- Validators play a vital role in verifying new transactions and adding them to the blockchain. In exchange for their services, they may receive a cut of fees and newly created MATIC. Becoming a validator is a commitment that requires running a full-time node (or computer) and staking your MATIC. If you make an error or act maliciously (or even if your internet connection is glitchy), you could lose some of your staked MATIC.
- Delegators can indirectly stake their MATIC tokens with a trusted validator. This is a less committed version of staking, but it still requires research. If the validator you pick acts maliciously or makes errors, you could lose some or all of your staked MATIC.
The Polygon software development kit (SDK) is the network’s backbone. It is used to create sidechains for decentralized applications compatible with Ethereum and link them to its main blockchain.
One of the following construction scalability strategies can be used to create sidechains:
- Plasma Chains: Combines transactions into blocks and submits them all at once using the Ethereum blockchain.
- zk-Rollups: Enables the combination of numerous transfers into a single transaction.
- Optimistic Rollups: While comparable to Plasma Chains, but also capable of scaling Ethereum smart contracts.
Network users stake MATIC tokens on Polygon’s main chain, a Proof of Stake (PoS) sidechain to validate transactions and cast votes for network upgrades.
What Problems Does Polygon Solve?
Blockchain platforms now have the following issues:
- Sluggish transaction rates.
- Small scalability.
- The Blockchain is only a specific size.
- There are insufficiently few consistent payment routes on too many diverse off-chain systems.
- High transaction costs and poor utility.
The problems mentioned above will impact user experience and make it challenging for Blockchain to gain mainstream adoption. Matic Network (Polygon) develops a platform based on Plasma technology to address this issue and aid in the development of quicker transactional solutions and lower transaction costs.
There are two main layers in the Matic Network (Polygon) consensus mechanism:
- Proof of Stake (PoS) is used in the Checkpoints layer and Block Producers in the Block Producers layer to achieve a quicker block time.
- Mainchain maintains decentralization based on the top two layers through the underlying Checkpoints and Block Producers.
The Polygon Team
Polygon is a team of passionate people worldwide who are committed to a decentralized future!
Humans of Polygon:
- Jaynti Kanani: Jaynti Kanani is an experienced blockchain engineer, co-founder and CEO of Polygon (formerly Matic Network). With a team including Anurag Arjun, Sandeep Nailwal, and Mihailo Bjelic, Kanani turned Polygon into a cryptocurrency protocol with a market capitalization of over $14 billion.Kanani went to Dharamsinh Desai University and got a Bachelor of Engineering in Information Technology in 2011.
- Sandeep Nailwal: Sandeep Nailwal is an Indian entrepreneur, software developer, and founder of Polygon. Nailwal is also the one who started India’s Crypto Covid Relief Fund.
- Anurag Arjun: Anurag Arjun is a co-founder and the Chief Product Officer at Polygon (Matic Network). In 2006, Arjun obtained his Bachelor of Engineering in Computer Engineering from Nirma University.
- Mihailo Bjelic: Mihailo Bjelic is a co-founder of Polygon (Matic Network). Bjelic graduated with a degree in Information Systems Engineering from the University of Belgrade.
Mentors of Polygon:
- Hudson Jameson: Hudson Jameson is a software developer, entrepreneur, blockchain enthusiast, and researcher who is passionate about using technology to change the world.
- Ryan Sean Adams: Ryan Sean Adams started the investment company Mythos Capital, which holds crypto-assets and provides services for crypto networks. Adams lives in the Virginia city of Charlottesville.
- Anthony Sassano: Anthony Sassano is one of the most well-known and outspoken people in the crypto world who teaches about Ethereum. He started the newsletter and podcast “The Daily Gwei” and co-founded EthHub with Eric Conner.
With major partnerships, Polygon is on its way to becoming widely used. Polygon is the blockchain of choice for some of the biggest companies in the world. Many brands are using the low-energy sidechain to mint NFTs. Polygon offers many advantages for developers beyond NFTs. Here are some of Polygon’s partners in different fields.
- DraftKings is a US-based betting, casino, and fantasy sports company. Its NFT marketplace is built on top of Polygon to allow investors to buy and sell sports NFTs via the Draft Kings website. The company also runs its validator for the Polygon chain.
- The NFL is also using Polygon to create virtual commemorative tickets that it will distribute to fans attending select games. These NFL NFTs will be made on the Polygon network.
- Liverpool Football Club also used Polygon to launch its NFT collection. Liverpool FC said in a statement that it chose Polygon because “creating an NFT on Polygon has the same carbon impact as sending just 2.5 emails,” which means that LFC NFTs use 99.95% less energy than projects on Ethereum.
- Dolce & Gabbana made history with the highest value fashion NFT sale, worth $6 million, through its partnership with UXND. The release garnered attention from traditional fashion news outlets like Vogue, which declared it “A Million-Dollar Success Story.”
- In January, Adidas and Prada worked to release an NFT collection on Polygon. The project aimed to give digital artist Zach Lieberman’s “creator-owned art” to people who bought “Into the Metaverse” NFTs from Adidas.
- Adobe has integrated Polygon into its artist portfolio application, Behance. Behance is a platform where artists, creators, and developers can showcase their talents online to fans and potential collaborators. By integrating Polygon, Adobe gives its users an onramp to web3 and the ability to mint NFTs. These NFTs can be displayed on Behance with a link to OpenSea, where people can view additional information about them.
- Meta announced in May that it would be launching NFT integration with Instagram. The move was seen as a bold one for one of the world’s largest companies, and it further established Polygon as the go-to blockchain for traditional businesses looking to get on board with the new technology.
- Stripe announced in April that it would begin testing $USDC payments via Polygon to Twitter creators. With this new method, Twitter users who earn money through events such as ticketed Spaces can cash out via USDC instead of traditional banking methods
- Most recently, Circle confirmed that it would support USDC payments through Circle accounts and the Circle API without “manual bridging.” The company also said that users will be able to use the “platform to quickly swap Polygon USDC for native USDC across any supported chain.”
What Is MATIC Token?
The Polygon platform’s (Matic Network’s) primary administration and operating token, MATIC, was created by ERC20 specifications. The presence of MATIC Token has reduced the rate at which transaction costs rise as volume and user numbers rise.
The native token of Polygon is $MATIC. By staking, it is utilized to control and protect the network. Thanks to this Polygon app currency, users can communicate with hundreds of dApps that are part of the network.
Basic Information About MATIC
MATIC Key Metrics
- Token Name: Polygon.
- Ticker: MATIC.
- Token Standard: ERC210
- Polygon Contract: 0x0000000000000000000000000000000000001010
- Token Type: Utility, Governance
- Total Supply: 10B MATIC
- Circulating Supply: 8.04B MATIC
With a total supply of 10 billion MATIC coins, the number of tokens will be distributed as follows:
- Launchpad: 19% ~ 1,900,000,000 MATIC.
- Seed round: 2.09% ~ 209,000,000 MATIC.
- Early Supporter: 1.71% ~ 171,000,000 MATIC.
- Team: 16% ~ 1,600,000,000 MATIC.
- Advisors: 4% ~ 400,000,000 MATIC.
- Foundation: 21.86% ~ 2,186,000,000 MATIC.
- Ecosystem: 23.34% ~ 2,334,000,000 MATIC.
- Staking reward: 12% ~ 1,200,000,000 MATIC.
The graphic above shows you additional information about Polygon’s three investor sales rounds.
Price of MATIC Today
- 1 Matic (MATIC) = $0.7925 (-4.29%)
- Market Cap: $6,373,606,251
- 24 Hour Trading Volume: $684,408,518
What is MATIC Used For?
In the Polygon ecosystem, the MATIC token can be used for several things, such as paying gas fees, staking for security, and participating in-network governance by voting on Polygon Improvement Proposals (PIPs).
It is yet unclear, as of May 2023 whether the MATIC coin will have any other purposes within Polygon’s bigger picture.
How to Buy MATIC Tokens?
You can buy MATIC coin from the following exchanges:
Specifically, to buy MATIC tokens, you need to have an Ethereum wallet.
- Create an ETH Wallet: Create a new ETH wallet at MetaMask or use your existing ETH wallet.
- Transfer ETH to Your ETH Wallet: Send ETH to your ETH wallet using exchanges like Binance, Coinbase, Kucoin, etc.
- Buy MATIC Token: Go to the Binance Launchpad website and click the “BUY TOKENS” button.
- Connect Your ETH Wallet: Connect your ETH wallet using MetaMask or Trust Wallet.
- Enter the Amount of ETH You Want to Spend: Enter the amount of ETH you want to spend to buy MATIC tokens. You will see the number of MATIC tokens you will get.
- Review Your Transaction: Review your transaction and click on the “Confirm” button.
- Congratulations! You Have Successfully Purchased MATIC Tokens: You will see the confirmation message once your transaction is successful.
How to Store MATIC Coins?
MATIC coins can be stored in various wallets, depending on your needs.
- If you want to use MATIC for its staking capabilities, you will need to use a wallet that supports staking. Some popular options for storing MATIC include the Trust Wallet, Atomic Wallet, and Binance Wallet.
- If you want to store your MATIC coins offline, you can use a hardware wallet like the Ledger Nano S, or Trezor Model T. These wallets allow you to keep your private keys offline, which makes them much more secure than online wallets.
- Finally, if you want to use MATIC as a currency, you can use any wallet that supports ERC-20 tokens. Some popular options include MetaMask, MyEtherWallet, and Enjin Wallet.
Goals of Polygon
- The goal of Polygon is to provide an easy-to-use and robust API for interacting with the Ethereum blockchain.
- Polygon aims to make it easy for developers to build applications on the Ethereum blockchain. To achieve this, Polygon provides a suite of tools and services that make it easy to interact with the Ethereum blockchain.
- Polygon’s ultimate goal is to make it easy for anyone to build on Ethereum.
Prospect Of MATIC
Polygon Studios is a branch of Polygon that focuses on blockchain games and non-fungible tokens (NFTs). It was started in 2021. If Polygon Studios works out, it could make Polygon a leading provider of technology for decentralized gaming and NFTs.
MATIC price predictions:
According to DigitalCoinPrice, the price of MATIC coin could reach $1.30 in August 2023, representing an increase of over 40%. The site suggests an average price of $1.38 in 2023 and 2024. For 2025, the site provides a MATIC coin price prediction of $1.72, climbing to $4.25 in 2030.
WalletInvestor does not believe that MATIC is a good long-term investment, suggesting a value of $0.07 in 12 months’ time.
A long-term forecast for a MATIC coin price prediction in 2030 can be found at. The outlook for MATIC looks positive overall. However, it remains to be seen how the market will continue to develop.
How to earn MATIC tokens?
Matic tokens can be earned by participating in the Matic staking program. Stakers can earn rewards by participating in the network’s consensus mechanism and providing security to the network.
Should you invest in Polygon?
Polygon’s volatility is on par with what you anticipate from any other cryptocurrency. Although its creators may have more ambitious intentions for the future, there is no way to guarantee that the coin’s popularity and value won’t suffer due to Ethereum or other blockchain networks.
Is investing in MATIC risky?
There is always risk involved when investing in cryptocurrency, as the prices are highly volatile. However, some experts believe that MATIC has the potential to grow in the future, so it may be worth investing in if you are comfortable with the risks.
Why is Polygon popular?
Compared to Ethereum, which only manages about 15 transactions per second, Polygon can handle thousands of transactions per second. Polygon’s security features come from grouping and validating all transactions before they are submitted to the Ethereum main chain.
Is it the right time to buy MATIC?
This is not a simple question, as it depends on several factors. Some people believe that now is an excellent time to buy MATIC, while others believe it is better to wait for a dip in price. Ultimately, it is up to the individual to decide whether or not they think that MATIC is a good investment at its current price.
What can I buy with MATIC?
MATIC can be used to purchase a variety of goods and services. Some of the things that can be bought with MATIC include:
- Video games
- Fashion items
- Home goods
- Gift cards
How is Polygon different from other blockchain projects?
Polygon is a unique blockchain project because it focuses on bringing Ethereum to more users by making it easier to use. Polygon also offers a variety of features that other blockchain projects do not, such as scalability and security.
Can I convert Polygon coins to other currencies?
You can convert Polygon coins to other currencies using the Binance, Coinbase, FTX exchange and more.
How can I find more information about Polygon?
There is a lot of information about Polygon online. You can find their website at http://www.polygon.com/. You can also find them on social media sites like Facebook and Twitter.
Cove Markets has put together the information about “What is Polygon?” and problems with the Polygon project to convey to you. One may say that Polygon has advanced very significantly in recent years. Future predicts a Polygon with an excellent “Internet of Blockchain” strategy, which is gaining support from the user base. We hope that you have found useful information about Polygon (MATIC) .
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Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.