Why Is Polygon Going To Be The Next Big Thing In Crypto?
Polygon is one of the top-performing platforms in terms of trading volume on CoinSwitch. Polygon MATIC is a scalable platform that lets Ethereum-supported blockchains interact with one another. This platform also derives to use for creating new Ethereum blockchains for organizations and businesses that need decentralized payment solutions. Polygon MATIC’s main aim is to fund a multichain Ethereum ecosystem. That’s why the network raises to itself as Ethereum’s internet of blockchains.
Polygon MATIC is a scalable platform that allows Ethereum-supported blockchains to interact with one another. It is also used to create new Ethereum blockchains for big businesses and organizations requiring decentralized payment solutions. The network refers to itself as “Ethereum’s internet of blockchains” because one of its primary operations is to assist a multichain Ethereum ecosystem.
Through Polygon’s white paper, they were the first to report the key issues linked with Ethereum’s high gas fees and network blocks. They made a team that alleged in creating a seamless and limitless world that can run on Ethereum capably to get around them
How does Polygon help Ethereum?
The creation of the Polygon network was intended to develop the lack of efficiency and scalability in Ethereum. When the platform had been established, it deliver scalable solutions to Ethereum’s problems and utilize sidechains as scalability assets.
Ethereum certainly has its own set of issues with scalability and fees, which can outcome in a poor user experience. Since Ethereum has a massive user base, their networks are often backed up, which makes transactions quite expensive for everyone.
On the other hand, Polygon is a troubleshooter. Ethereum has more issues that can only be resolved by Polygon. Polygon addressed these issues by executing a one-of-a-kind Layer-2 solution. This solution allows Polygon to use Ethereum to verify transactions at a portion of the cost.
Polygon, with its Layer-2 solution, does not need its primary blockchain to function because it runs on Ethereum’s network. Apart from this, Polygon services side chains that intelligently divert traffic and user transactions subsequent to the release of computing power.
Rise of Polygon (MATIC)
MATIC is the first token of the Polygon blockchain, which is mainly used as a staking token to verify all the transactions with the use of the Proof of Stake (PoS) model. These coins can be used by miners as investing assets and utility tokens both.
The main idea for creating a Polygon network was to increase the lack of efficiency and scalability in Ethereum. The creators of Polygon initiated MATIC based on their requirements.
The development of this platform offered scalable solutions to the problems of Ethereum and utilize side chains as consistency assets. By creating itself as the only PoS blockchain at a time, the network also evaded the Proof of Work (PoW) problem.
In February 2021, Polygon went in a rebranding implementation and completely changed its mission statement. Hence, it became the network that functioned as an interconnection between blockchains and networks while leveraging Ethereum’s security.
What are layer-2 solutions?
When we exchange blockchain scaling solutions, they are frequently split into two stages layer-1 and layer-2 solutions.
Layer-1 raises scaling functions within the blockchain itself by means of innovative consent algorithms and increasing block limits.
Layer-2 scaling solutions refer to off-chain solutions. They reduce elements of computing power from the main blockchain, before being implemented on side-chains. This assists to increase data on the main chain.
Projects that chose Polygon
Many projects like Curve and Aave were launched on Polygon last year. Metaverses like Decentraland has selected Polygon as their devoted scaling solution as well.
Polygon (MATIC) recent developments
Polygon was one of the top gainers in 2021, when the price increased from $0.01 on January 1, 2021, to its highest of $2.92 by December 27. Polygon has been the thrill of the crypto community, and here are some compelling reasons.
Polygon launched a $200 million initiative with Alexis Ohanian’s Seven Seven Six, to back projects at the connection of social media and Web3. DraftKings, huge US-based fantasy sports betting business also broadcast its plans to launch an NFT marketplace on Polygon.
In addition, the number of apps developed on Polygon reached 3,000, growing enormously from a meager 30 the year before. Coinbase, one of the biggest crypto exchange platforms in the world, stated plans to integrate Polygon PoS as their first scaling solution. The development team launched Polygon Studios, a Web3 and NFT support of the network. Open Sea, the world’s leading NFT marketplace, in recent times integrated with Polygon.
Numerous projects, including Aave and Curve, were launched on Polygon last year, and Metaverses such as Decentraland have selected it as their dedicated scaling solution. Decentralized exchanges such as UniSwap and SushiSwap have also launched on Polygon, letting users trade the coin without the need for intermediaries.