What Is Polygon (MATIC)?

 Demystifying Polygon (MATIC)

Venturing into the intricate realm of blockchain scalability and infrastructure evolution, Polygon, previously known as Matic Network, emerges as a pioneering platform tailored for Ethereum. At its core lies the Polygon SDK—a meticulously crafted, modular framework, offering unparalleled versatility for diverse application development.

For a comprehensive exploration of Polygon Matic, delve into our in-depth analysis.

Polygon serves as a catalyst for the creation of optimistic rollup chains, ZK rollup chains, standalone chains, or any developer-required infrastructure, providing an innovative canvas for blockchain architects.

Effectively metamorphosing Ethereum into a comprehensive multi-chain ecosystem, often referred to as the Internet of Blockchains, Polygon stands shoulder to shoulder with counterparts like Polkadot, Cosmos, and Avalanche. Leveraging Ethereum's robust security, vibrant ecosystem, and open architecture, Polygon ensures a seamless transition.

The $MATIC token, a stalwart in this transformative narrative, assumes a pivotal role in fortifying the system's security and empowering decentralized governance.

As a Layer 2 scaling solution, Polygon bears the endorsement of industry giants like Binance and Coinbase. The project's overarching goal revolves around surmounting the scalability challenges pervasive in many blockchain networks, aiming to propel the widespread adoption of cryptocurrencies.

Polygon artfully integrates the Plasma Framework with a proof-of-stake blockchain architecture—a marriage of technologies proposed by Ethereum's co-founder, Vitalik Buterin. This amalgamation enables the execution of scalable and autonomous smart contracts, with a unique twist in the form of the Plasma framework.

The existing ecosystem built on the Plasma-POS chain remains unaffected, with Polygon introducing novel features around proven technology to cater to a diverse array of developer needs. The relentless pursuit of core technology development positions Polygon to seamlessly scale within a burgeoning ecosystem.

With a staggering capability of up to 65,000 transactions per second on a single side chain and a commendable block confirmation time of under two seconds, Polygon unfolds a tapestry that beckons the creation of globally available decentralized financial applications on a foundational blockchain.

The Plasma framework affords Polygon the potential to host an unlimited number of decentralized applications, mitigating the typical pitfalls encountered in proof-of-work blockchains. Evidently, Polygon has successfully enticed over 50 DApps to embrace its PoS-secured Ethereum sidechain.

In the domain of tokenomics, MATIC, the native token of Polygon, operates as an ERC-20 token residing on the Ethereum blockchain. Beyond facilitating payment services and serving as a settlement currency within the Polygon ecosystem, MATIC tokens also underwrite transaction fees on Polygon sidechains.

The Visionaries Behind Polygon's Genesis

Born in October 2017, Polygon found its genesis under the visionary leadership of Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. This formidable trio consists of seasoned blockchain developers and a business consultant, collectively steering Polygon's journey.

Before transitioning to its network in 2019, Polygon's team left an indelible mark on the Ethereum ecosystem, contributing significantly to the implementation of the Plasma MVP, the WalletConnect protocol, and the widely embraced Dagger event notification engine.

Jaynti Kanani, the CEO of Polygon, emerged as a pivotal force, bringing a wealth of experience as a full-stack developer and blockchain engineer. His prior tenure as a data scientist with Housing.com underscores his multifaceted expertise.

Sandeep Nailwal, Polygon's COO and blockchain programmer, boasts a rich entrepreneurial background, having served as the CEO of Scopeweaver and CTO of Welspun Group.

Anurag Arjun, the non-programming co-founder, contributes valuable insights as a seasoned product manager with a diverse professional journey.

Polygon's Distinctive Identity Unveiled

Polygon positions itself as a Layer 2 scaling solution, focusing on simplifying scalability and instantaneous blockchain transactions without altering the fundamental blockchain layer. Utilizing a customized version of the Plasma framework built on proof-of-stake checkpoints, each sidechain on Polygon achieves an impressive throughput of up to 65,536 transactions per block.

Commercially, Polygon's sidechains are architecturally designed to support various decentralized finance (DeFi) protocols within the Ethereum ecosystem. While currently tethered to Ethereum's base chain, Polygon envisions expanding support for additional base chains based on community consensus, solidifying its status as an interoperable decentralized Layer 2 blockchain platform.

Quantifying the MATIC Token Landscape

The release of MATIC tokens follows a monthly cadence, with the circulating supply currently standing at 4,877,830,774 MATIC tokens and a maximum supply capped at 10,000,000,000 MATIC tokens.

The initial private sale in 2017 distributed 3.8 percent of MATIC's maximum supply. Subsequent to the April 2019 launchpad sale, which generated $5 million at a token price of $0.00263, the remaining MATIC tokens found allocation across various categories, including team, advisors, network operations, foundation, and ecosystem tokens. This strategic distribution is poised to conclude by December 2022, adhering to the proposed release schedule.

Fortifying Polygon's Security Framework

As a Layer 2 solution underpinned by proof-of-stake validators, staking becomes intrinsic to Polygon's ecosystem. Validators stake MATIC tokens as collateral, participating in the network's PoS consensus mechanism and receiving MATIC tokens in return.

For network participants disinclined to assume the role of validators, delegation of MATIC tokens to a chosen validator remains a viable option. This approach ensures active involvement in the staking process, accompanied by corresponding staking rewards.

In addition to proof-of-stake checkpointing, Polygon strategically employs block producers at the block producer layer, augmenting decentralization. These block producers finalize main chains using checkpoints and fraud-proof mechanisms, reinforcing the network's security.

Acquiring Polygon's Native Token (MATIC)

Amidst its contributions to Ethereum's development, MATIC garners popularity on DeFi-focused online exchanges. Prominent platforms facilitating MATIC trading include Binance, Coinbase Pro, Huobi Global, and KuCoin.

For real-time MATIC price conversions tailored to your fiat currency, leverage CoinMarketCap's converter feature embedded in the MATIC currency page. Alternatively, explore the dedicated exchange rate converter page, supporting popular MATIC price pairs like MATIC/USD, MATIC/GBP, MATIC/AUD, MATIC/EUR, and MATIC/JPY.

Unveiling the London Hard Fork and EIP-1559 Upgrade

Polygon ushered in the much-anticipated London Hard Fork and Ethereum Improvement Proposal (EIP) 1559 upgrade on Jan. 18, 2022. This transformative upgrade revolutionizes the fee mechanism on the Ethereum network, replacing the first-price auction with a base fee that is burned, enhancing stability and cost predictability.

Despite not lowering transaction fees, this upgrade introduces a deflationary effect on MATIC tokens, given their fixed supply of 10 billion. Polygon's core team anticipates an annual burn of around 27 million MATIC tokens, primarily benefiting validators and delegators receiving rewards denominated in MATIC. The automatic increase in the base fee upon block completion reduces spam transactions and minimizes network congestion.

Polygon's pursuit of carbon neutrality aligns with its commitment to sustainable blockchain development.