Polygon, formerly known as Matic Network, is a "Layer 2" or "sidechain" scaling solution that operates alongside the Ethereum blockchain. Its primary goal is to address Ethereum's scalability issues, providing much faster transaction speeds and significantly lower fees.
The network's native cryptocurrency was initially MATIC, which is still widely used and traded. However, Polygon has introduced POL, a new "hyperproductive" token designed to power the next generation of its ecosystem. Both MATIC and POL are ERC-20 tokens, ensuring compatibility with Ethereum.
The tokens are essential for the network's function. They are used to pay for transaction (gas) fees on the Polygon network and for the Proof-of-Stake (PoS) consensus mechanism. By staking POL, users can secure the network and earn rewards. Polygon's technology makes it a vital platform for various applications, including Decentralized Finance (DeFi) and NFTs.
