Polygon MATIC is a scalability platform that enables Ethereum-supported blockchains to communicate with one another. It is also used to create new Ethereum blockchains for businesses and institutions needing decentralized payment solutions. The network refers to itself as "Ethereum's internet of blockchains" because one of its primary missions is to support a multichain Ethereum ecosystem.
Polygon was one of the top-performing crypto assets on CoinSwitch, in terms of the trading volume.
Polygon, formerly known as the Matic network, was founded in India in October 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun.
Fun fact: The Polygon founders are India's first crypto billionaires.
Through Polygon's white paper, they were the first to address the key issues associated with Ethereum – high gas fees and network bottlenecks. They formed a team that believed in creating a seamless and borderless world that could run on Ethereum efficiently to get around them.
How does Polygon come to Ethereum's aid?
Polygon is an ingenious problem solver. Ethereum has its own set of issues with scalability and fees, which can sometimes result in a subpar user experience. With a large user base, Ethereum's networks are frequently clogged, making transactions expensive for everyone.
With these issues on Ethereum and no viable alternative, Polygon has emerged as a hero. This India-based blockchain platform has addressed these issues by implementing an innovative, one-of-a-kind Layer-2 solution, enabling Polygon to use Ethereum for transaction verification at a fraction of the cost.
With the Layer-2 solution, Polygon does not require its own primary blockchain to function; instead, it operates on top of Ethereum's network. Polygon also employs side chains, which intelligently divert traffic and user transactions away from the leading network, freeing up computing power.
ET Spotlight SpecialThe rise Polygon (MATIC)
MATIC is the native token of the Polygon blockchain. MATIC is primarily used on the blockchain as a staking token to validate transactions using the Proof of Stake (PoS) method. Miners can use these coins as both capital assets (which increase in value over time) and utility tokens (which can be staked for regular returns).
The creation of the Polygon network was meant to improve the lack of efficiency and scalability in Ethereum. Polygon creators went on to start MATIC, basing their operations in Mumbai.
When the platform had been developed, it could provide scalable solutions to Ethereum's problems and utilize sidechains as scalability assets. The network also bypassed the Proof of Work (PoW) problem by establishing itself as one of the only PoS blockchains at the time.
Fast-forward to 2021, Polygon underwent a rebranding exercise and completely changed its mission statement in February 2021. From there, it became the network that served as an interconnection and bridge between blockchains and networks while leveraging Ethereum's security.
This rebranding was a game-changer. And the ability to connect multiple channels and networks with one another could be the technology that solves the blockchain scalability problem entirely.
As Sandeep Nailwal, one of the founders, puts it, "In terms of our tokens in circulation, it's like 60% of our total supply, which amounts to around $14B in valuation. In terms of the users, Aave is one of the largest DeFi applications launched on Polygon, and they have 30,000-plus users compared to Ethereum, where they have 26,000 users."
"So overall, on Polygon, we are approaching 1 million unique addresses, which is 30–50% of where Ethereum is today. Polygon is able to onboard these new users because it is a scaling platform… So we are able to onboard retail users," he further added.
Polygon (MATIC) recent developments
Polygon was one of the top gainers in 2021, when the price surged from $0.01 on January 1, 2021, to its highest of $2.92 by December 27. Polygon has been the buzz of the crypto community, and here are some compelling reasons why.
Polygon launched a $200 million initiative with Alexis Ohanian’s Seven Seven Six, to back projects at the intersection of social media and Web3. DraftKings, a huge US-based fantasy sports betting company, also announced its plans to launch an NFT marketplace on Polygon.
In addition, the number of apps developed on Polygon reached 3,000, growing massively from a measly 30 the year before. Coinbase, one of the biggest crypto exchange platforms in the world, announced plans to integrate Polygon PoS as their first scaling solution.
The development team launched Polygon Studios, a Web3 and NFT arm of the network. And OpenSea, the world’s biggest NFT marketplace, recently integrated with Polygon.
ET Spotlight SpecialWrap-Up
Several projects, including Aave and Curve, were launched on Polygon last year, and metaverses such as Decentraland have chosen it as their dedicated scaling solution. Decentralized exchanges such as UniSwap and SushiSwap have also launched on Polygon, allowing users to trade the coin without the need for intermediaries.
Fun fact: The sale of the first-ever Tweet as an NFT for $2.9 million took place on Valuables, a dApp made on the Polygon blockchain.
All the records about Polygon show an upward trend of the Indian-origin blockchain network. According to experts, Polygon has a bright future with increased adoption and development in the short and long term.
It has enormous potential for consistent growth as the crypto world becomes more inclusive and extensive, thanks to its involvement in numerous dApps and DeFi projects.
If you want to bet on Polygon and its long-term growth, Polygon (MATIC) is available at credible crypto platforms like CoinSwitch, which also update users about the latest developments associated with this one-of-a-kind layer-2 solution.
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