Polygon is a blockchain with its cryptocurrency POL. It is a technological platform that connects and scales blockchain networks. Polygon is known as the 'Internet of Ethereum blockchains' and was launched in 2017 under the name Matic Network.
The Polygon platform is based on the Ethereum blockchain and connects Ethereum-based projects. Polygon can enhance the flexibility, scalability, and sovereignty of a blockchain project while providing the security and structural advantages of the Ethereum blockchain.
POL is an ERC-20 token, which means it is compatible with other Ethereum-based cryptocurrencies. POL is used to govern and secure the Polygon network, and to pay transaction fees on the network. Since April 2022, Polygon claims to operate in a climate-neutral manner.
Since Ethereum switched to a Proof of Stake mechanism, Polygon's focus on being a scaling solution for Ethereum has lost relevance. Therefore, the platform is increasingly oriented towards web3 applications and NFTs.
The Polygon platform was originally created to connect Ethereum applications and blockchains and enable their growth. It is a layer 2 blockchain, designed to achieve scalability through an additional layer on the network. Polygon uses a custom Proof of Stake consensus mechanism. In this mechanism, users of the blockchain stake their tokens to support the operation of the blockchain.
Polygon can:
Integrate existing blockchains and develop custom blockchains.
Enable communication between Ethereum and other blockchains.
Help connect existing blockchains with Ethereum.
Reduced costs and multiple protocols
How does Polygon keep costs low on the network? To reduce transaction fees, scaling solutions like Polygon process transactions on 'side chains', secondary blockchains that run parallel to the main chain. These side chains relieve some of the load on the main chain and then synchronize this data with the rest of the network. Thus, Polygon has the potential to process up to 65,000 transactions per second.
Since multiple protocols can be used on Polygon, users can choose the one that best fits their needs. One of these protocols is the Zero-Knowledge Proof (zk) mechanism, a cryptographic method to verify if a transaction is valid. The transaction processor does not need to provide additional information, aside from confirming that the statement is true.
Among its layer 2 competitors, Polygon is one of the first to allow token staking. With cryptocurrency staking, users can earn annual interest by validating transactions on the blockchain.
Polygon offers solutions for everyday users, developers, and businesses. Its main goal is to create an Internet of Things (IoT) for Ethereum. The project aims to scale Ethereum to a billion users without compromising decentralization or security.
Polygon's distinction from other layer 2 solutions lies in its approach. Polygon provides a variety of solutions within a single network, giving developers greater control and customization in choosing a scalable solution that best fits their application.
Polygon has been popular in the cryptocurrency world for years. Why do cryptocurrency traders choose POL?
The coin is based on the robust Ethereum blockchain and is easily integrable into many applications.
The blockchain is fast, efficient, and scalable.
Developers can create their own applications on Polygon, providing great flexibility.
Low transaction fees and high transaction speed make it popular among traders and developers alike.
Polygon has been praised, among others, by Vitalik Buterin, the creator of Ethereum.
Like all other cryptocurrencies, Polygon is not perfect. What should investors consider when thinking about POL?
The Polygon blockchain was originally designed to alleviate congestion on the Ethereum blockchain. Now that Ethereum has adopted Proof of Stake, this approach has become unnecessary.
Dependence on the Ethereum ecosystem.
Strong competition from similar coins and projects.
The founder of Polygon is Sandeep Nailwal. Polygon, previously known as Matic Network, is a scalability and sidechain solution for blockchains that aims to enhance the scalability and usability of decentralized applications (DApps) on the Ethereum blockchain. Sandeep Nailwal has been a key figure in the development and promotion of Polygon, working to make DApps more efficient and accessible in the cryptocurrency ecosystem.
