What is Polygon (MATIC)?

What is Polygon (MATIC)?

Share on facebook
Share on linkedin
Share on twitter
Share on pinterest
Share on email

Polygon is a response to some of Ethereum's current significant difficulties, including excessive fees, a bad user experience, and insufficient transaction throughput.

The platform's objective is to establish “Ethereum's internet of blockchains” — a multi-chain ecosystem of Ethereum-compatible blockchains.

Top 10 Forex Brokers

Broker

Rating

Regulators

Min Deposit

Leverage

Sign Up Bonus

Spreads

Website

1

9/10

FSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC

$10

1:Unlimited

10%

0.1 pips

2

8/10

ASIC, FSA

$100

1:400

40 USD

0.91 pips

3

8/10

FSA, FCA, CySEC, FSCA

$100

1:20

30 USD

0.07 pips

4

8.7/10

CySEC, FSC, CFTC

$5

1:500

30 USD

1 pips

5

8.5/10

FSA, FSCA

$100

1:200

20 USD

0.9 pips

6

8.4/10

FSA

$100

1:3000

30 USD

0.3 pips

7

8.3/10

IFSC, CySEC

$100

1:3000

100 USD

0 pips

8

8.2/10

FSC, IFSC, MFSC

$10

1:400

50%

0.4 pips

9

8.1/10

IIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, MFSA

$0

1:200

1000 USD

0.2 pips

10

8/10

CySec, FSC, FSA, BaFin, NFA

$100

1:200

30%

1.5 pips

Top 10 Brokers

Broker

Deposit

Leverage

Website

1

$10

1:Unlimited

2

$100

1:400

3

$100

1:30

4

$5

1:500

5

$100

1:200

6

$100

1:3000

7

$100

1:3000

8

$10

1:400

9

$0

1:200

10

$100

1:200

It intends to do this by offering a simple-to-use infrastructure that enables developers to quickly and easily construct their own unique Ethereum-compatible interoperable blockchains.

Polygon envisions a future in which interconnected blockchains may freely and quickly exchange value and information, eradicating the technical and ideological barriers that now exist between the majority of blockchains.

Initially called the Matic Network, the project was renamed Polygon as the project scope increased. While Matic was a straightforward layer-2 scaling alternative for Ethereum, Polygon is the foundation for a network of collaborative, massively scalable blockchains that preserve their self-sovereignty.

 

Component Polygon (MATIC)
Technologies DApps, EVM
Market Capitalization $15 Billion+
Open-Source Yes
Consensus Mechanism Proof-of-Stake
Smart Contracts Yes
Founders/Authors Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic
Launch Date 2017
Circulating Supply of Coins 7,081,682,963 MATIC
Maximum Coin Supply 10,000,000,000 MATIC
Mining-based Coin? No
Is Polygon a Stablecoin? No
Does Polygon have a burn rate? Yes
Does Polygon have a Whitepaper? Yes, the white paper for Polygon can be viewed here

 

Evolution and Development of Polygon

Polygon was developed in India in 2017, and it was initially known as the Matic Network at first. Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, as well as Mihailo Bjelic, produced the idea for it.

Some of the biggest figures in the world of decentralized finance, or “DeFi,” have signed up to use the Matic Network, which went live in 2020. Decentraland and MakerDAO are two of the companies. In February 2022, the Matic Network changed its name to Polygon.

In April 2019, the Polygon team sold 1.9 billion MATIC tokens for $5.6 million in ETH over 20 days. This is the equivalent of about $5.6 million in ETH.

In terms of transaction speed, Polygon can process up to 65,000 transactions per second (TPS), making it one of the fastest blockchains in the crypto market.

 

What makes Polygon unique?

The following key features make Polygon unique:

  • Architecture – There is a Polygon software development kit (SDK) at the heart of the network. This SDK is used to develop Ethereum-compatible decentralized applications as sidechains, after which they can be attached to the main blockchain.
  • Plasma Chains are used to bundle several transactions into blocks which are then submitted to the Ethereum blockchain in singular submissions.
  • zk-Rollups which allow for several transfers to be bundled into a singular transaction.
  • Optimistic Rollups are like Plasma Chains, but they can scale Ethereum Smart Contracts.

 

What are the main uses for Polygon?

Users can pay fees for things on the Polygon network with a cryptocurrency called MATIC. Users can also use MATIC as a form of staking and to help run the company, allowing MATIC holders to vote on any updates made to the ecosystem and platform. 

 

What is the future potential for Polygon?

People have a hard time predicting the future of a layer-2 project like Polygon because it is so unique. One way to think about this is to look at the competition for the best way to work with cryptocurrency.

It is hard for the Polygon network to compete with Cosmos Network games like Stargate and Polkadot.

This is because Polygon's native currency, MATIC, surpassed most major coins during the market collapse that occurred in May and again in recent times when most of the crypto market went down, which caused Polygon to attract significant amounts of attention.

Among the most successful cryptocurrencies in 2022, MATIC has become one of the most lucrative investment options. It started the year at $0.0178 and rose to an all-time high of $2.62 on May 18. This has attracted more attention from crypto investors.

Experts have said that if everything goes well for the network, MATIC prices could rise as high as US$50 in the next five years.

 

Price analysis on Polygon

Polygon's native currency MATIC was officially launched in 2019, two years after the platform launched, and its price analysis over the past two years are indicated as follows:

 

  2019 2020 2021 to date
MATIC Price High $0.04 $0.03 $2.45
MATIC Price Low $0.0035 $0.008 $0.01
Market Cap $106.24M $113.49M $17.3B

 

Price prediction on Polygon

Experts have done a lot of technical analysis on the past prices of MATIC, and they think that Polygon's price will be at least $1.72 in 2022 at the very least. There is a maximum price for MATIC of $1.96, which is about the same as the average price of $1.90.

Experts anticipate that the cost of Polygon will hit $2.67 at least in 2022, but that could change. There is a chance that the Polygon price will reach a high point of $3.29 in 2022, when the average price is predicted to reach $2.77 through the following year.

According to a comprehensive projection price and technical analysis, the price of Polygon is expected to reach a minimum level of $3.72 by 2023 at the latest. The MATIC price may reach a high of $4.62 with an average trading price of $3.83, with a maximum level of $4.62.

 

Which wallets are the best option for storing Polygon?

Simply said, a Polygon wallet is a piece of software that allows users to keep the information they need to access their Polygon (MATIC) cash. This information includes a private key, which functions similarly to a password, and a wallet address, also known as a public key, which functions similarly to an account number.

The best digital wallets for MATIC are:

  1. AlphaWallet
  2. Atomic Wallet
  3. Trezor Hardware Wallet
  4. Trust Wallet
  5. Lumi Wallet

 

1. AlphaWallet: AlphaWallet refers to itself as the “no-nonsense” wallet, and in some ways, this is true in certain ways. It is basic, uncomplicated, and minimalistic. However, if you begin to scratch the surface, it begins to seem less enticing than it had first appeared.

The wallet was initially forked from Trust Wallet, with several pieces of the code being rewritten in the meanwhile to cater to a different kind of audience than the original. 

 

2. Atomic Wallet: The pricing, currency and token support, and ease of use are the most appealing aspects of the Atomic Wallet. The wallet is free to use, with the exception of network transaction fees, of course. While it offers support for over 500 coins and tokens, it also offers alternative exchanges in addition to Atomic Swap to cover as wide a range of cryptocurrency assets as possible.

 

3. Trezor Hardware Wallet: A Trezor wallet is one of the greatest cryptocurrency wallets available in the crypto-sphere. Except for the fact that it has excellent security, it is also reasonably simple to use and offers excellent support and updates.

However, even though it is more costly than other physical crypto wallets, the features you will be able to take advantage of make it a worthwhile investment.

 

4. Trust Wallet: Trust Wallet is a popular crypto wallet that has acquired widespread popularity among novices and experienced alike by focusing on innovation.

The wallet we are going to show you today is a comprehensive blockchain suite that gives you access to a variety of services. It enables you to purchase cryptocurrencies using fiat onramps, current trade assets, store NFTs, and even earn crypto via staking.

 

5. MATIC Wallet: Lumi wallet is a safe and simple-to-use cryptocurrency wallet that is suitable for both novice and experienced users. It combines a user-friendly interface with high-end capability.

Lumi accepts both ETH and BTC, as well as the most prominent tokens. Lumi Wallet is one of the finest Crypto Wallets on the crypto market because of all the following features.

Best Bitcoin Wallets are the same as Polygon wallets.

Where can you buy Polygon?

Polygon (MATIC) can be purchased from the following crypto exchanges:

  1. Binance
  2. OKEx
  3. CoinTiger
  4. FTX
  5. ZBG

 

1. Binance: Binance provides a safe and flexible platform for investing in and trading cryptocurrencies. Binance may be intimidating for both novice and expert traders. Binance is completely free to use and charges far less than other cryptocurrency exchanges in operation today.

 

PROS CONS
Binance is one of the fastest exchanges with a high trust score Binance does not offer its services to United States traders
Binance is known for its ultra-low transaction fees There is a limited selection of tradable coins
The platform features high liquidity  
Great customer service offered  
Binance offers some of the most prominent coins  
Binance has a good reputation in the crypto community  

 

2. OKEx: OKEx, originally founded by Star XU, is controversial crypto and digital asset exchange located in Belize. Among the exchange's remarkable investor roster is VenturesLab, which was co-founded by Tim Draper.

Draper is a well-known American venture capitalist and proponent of cryptocurrencies who has made a run of successful early-stage investments in firms such as Hotmail, Tesla, and Baidu.

 

PROS CONS
Offers a range of professional trading options including futures Only supports CNY fiat currency now
Offers support for fiat-to-crypto transfers There are mixed reviews on the exchange
The trading platform is robust and innovative  
Offers margin and leveraged trading  
Provides a wide range of tradable coins  
Ultra-low transaction rates  

 

3. CoinTiger: CoinTiger is a Singapore-based cryptocurrency exchange. CoinTiger was created in cooperation with Skymoons, a well-known Korean creator of mobile-based online games.

CoinTiger now provides basic spot trading and promises to expand to sophisticated spot trading and futures contracts in the future.

 

PROS CONS
Offers access to Bitcoin and a range of altcoins, DeFi Coins, and fiat currencies that can be traded There is no telephonic support
Offers convenient trading terminals There is no affiliate program offered
Provides a converter that can be used to exchange crypto and fiat quickly  
Offers direct investment in crypto projects  
There is no minimum deposit required when registering an account  
There is a detailed training program for beginner traders  

 

4. FTX: In addition to trading options, volatility products, and leveraged tokens, the FTX platform offers a wide choice of derivatives and options products. For active traders and corporate trading businesses, FTX's platform includes a wide range of useful features, but it also provides simple spot trading for newbies.

 

PROS CONS
Offers quick and instant swaps between coins and currencies Does not offer its service to United States clients
Offers an innovative mobile app USD withdrawals are not cost-effective
Provides access to a wide range of tradable digital assets There is no live chat option
The trading fees charged are low and reasonable  
Offers staking  
Users can stake and hold FTT (FTX's native cryptocurrency) to earn additional benefits  

 

5. ZBG: ZBG is a newly founded cryptocurrency exchange based in China that launched in July. It is a sub-platform of the much bigger exchange ZB.com, and in terms of liquidity, ZBG offers a respectable offering compared to the competition.

 

PROS CONS
User-friendly and easy to navigate Unregulated crypto exchange
Offers high liquidity There is no support for fiat currencies
There is a wide range of cryptocurrency assets that can be traded  
There is a sophisticated and robust trading platform  
The platform charges low trading costs  
The platform has a decent trust score  

You can buy Polygon Cash safely from these cryptocurrency platforms.

Does Polygon use coin burns?

Yes, with the Polygon EIP-1559, Polygon is set to burn MATIC coins with every transaction to give greater transaction fee disclosure as well as other minor functionality.

The EIP-1599 upgrade to the blockchain pointed out two critical features of transaction cost: the burning of transaction fees in response to network congestion and a reduction in the volatility of gas prices.

 

What is Polygon’s largest Competitor?

Polkadot is the largest competitor of Polygon.

It plans to develop a “multi-chain system” using Optimistic Rollups, zk-Rollups, and Validium. Some advisors see Polygon's goal as just a “Polkadot on Ethereum” strategy to compete against the Web3 Foundation's open-source initiative.

Polkadot's DOT cryptocurrency rose to fourth in overall market capitalization in February 2022, according to CoinMarketCap. -Polkadot launched a Parachain rollout map while it was still in the Rococo testing stage, causing a spike.

Now, Polygon and Polkadot are two of the most notable Ethereum-based layer-two solutions rebranding Matic Network.

Polkadot uses a Parachain network to conduct transactions on smaller chains in parallel. Many Polkadot companies use the Substrate platform, which lets DApp developers focus on business rather than constructing and maintaining a blockchain.

It already powers over 7 million transactions over 200,000 user addresses with over 80 apps onboarded since 2017. Fabricates Polygon SDK. The adaptable structure helps secure (Layer 2 chains).

Apps that are not secure and teams who are struggling to construct a distributed and trustworthy validator pool would benefit from the protocol.

While Ethereum 2.0 is still a long way off (Phase 1.5 is expected to take over a year), initiatives like Polkadot and Polygon are excellent Layer 2 answers to Ethereum's primary issues.

Comparatively, Polygon's multi-chain architecture and ability to fully profit from Ethereum's network externalities rather than competing ecosystem provides it with a considerable advantage over other platforms.

 

What is the Staking Process involved with Polygon?

Polygon is a layer-two scaling solution that leverages a Proof of Stake (PoS) system of verifiers for asset security. To participate in the PoS consensus method, validators must stake cryptocurrencies. Validators get MATIC tokens.

Holders can choose not to be professional validators and assign their tokens to other verifiers. Members will still be able to stake and earn prizes.

Finally, the network employs PoS ‘checkpointing.' Stakers assign a group of block producers for every checkpoint (i.e., header block). These producers help the system generate blocks quickly.

While maintaining decentralization, PoS checkpoints are delegated to the main chain, originally Ethereum. The Matic Network's decentralized manner of operation is confirmed by the periodic publication of block makers' proofs.

 

What can Polygon smart contracts do?

A smart contract is just an application that runs on the blockchain network and ecosystem, and it may be characterized as such. Smart contracts are made up of a collection of scripts that serve as their functionalities and a collection of data that serves as their state, both of which are stored at a particular address on the blockchain.

The user does not control Smart contracts. They are deployed to the network and subsequently run as they were programmed.

Polygon's architecture consists of four layers: Ethereum, Network Security, Polygon networks, and execution.

The Ethereum stack is a series of smart contracts built on Ethereum. It also handles staking and interaction between Ethereum and the Polygon chains.

The security layer operates alongside Ethereum and provides “validators as a service” to give chains an extra degree of protection. Ethereum and Security are optional.

 

Is Polygon a Good Investment?

Yes, Polygon is a good investment.

Polygon's initial offering was a sidechain. Unblocking a blockchain using a sidechain. Transactions are faster and cheaper.

Polygon was created for the Ethereum blockchain, although it is not confined to Ethereum. Its sidechains operate with any blockchain.

Polygon's future goals are bold. Its objective is to support blockchain networks. Users might develop blockchain networks that interact rather than being completely isolated.

What is the supply and distribution of Polygon?

Polygon has a circulating supply of 7,081,682,963 MATIC, and MATIC has a max supply of 10,000,000,000 coins.

  • The entire number of coins that can ever be in existence is referred to as the fixed or maximum supply in this context.
  • The Total Supply means the total quantity of coins produced, including those that have been lost or are no longer in circulation.
  • The entire number of coins in circulation is referred to as the circulating supply. 

Is Polygon a viable Alternative Coin?

Yes, Polygon is one of the best alternative coins in the crypto market based on:

  • Hacking – Polygon has not faced a successful cyberattack.
  • Security – Polygon is extremely secure and incorporates some robust protocols.
  • Transaction speed – Polygon is one of the fastest blockchains with a TPS of up to 65,000.
  • Technology – Polygon consists of some of the most innovative technology available, with further updates and upgrades planned to ensure continuous improvement.
  • Potential Investment – Because of its wide range of use cases, Polygon is a feasible option for potential crypto investments for beginner and institutional investors.
  • Popularity – Polygon is on the top 20 top alternative coins in the crypto market as a speculative investment and store of value.
  • Future Uses – Because of its unique, multi-layered, and innovative programmable blockchain, Polygon has a wide range of future uses.

 

What are the differences between Polygon And Bitcoin?

While Bitcoin is the original cryptocurrency, it faces several challenges with decentralization, scalability, and speed. As the world's first and biggest cryptocurrency, several nations accept this blue-chip, and there is a Bitcoin derivatives market.

In addition, The restricted quantity (approximately 21 million Bitcoins) adds to its value. Polygon is a scaling strategy for the Ethereum network that allows for rapid and safe off-chain payments.

Analysts believe new internal initiatives and forthcoming collaborations may help accelerate growth.

 

  Bitcoin Polygon
Price change 20/21 +400% +11,000%
Market Cap $800 Billion+ $15 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #1 – Original Crypto #14

 

What are the differences between Polygon and Ethereum?

Layer 1 is Ethereum, and Layer 2 is Polygon sidechains. Moving DeFi apps like Aave and Curve to Layer 2 leads in near-instant scaling and a better UX for everybody.

Polygon is the glue linking blockchains that center around Ethereum. ETH 2.0 will be an internet of shards or distinct blockchains. Each shard has its own blockchain, maintained by the Ethereum platform.

 

  Ethereum Polygon
Price change 20/21 +880% +11,000%
Market Cap $460 Billion+ $15 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #2 #14

 

What are the differences between Polygon and Polkadot?

  • Polkadot was a web3 foundation project till 2020. Mainnet was released on May 26th, 2020. Polygon began as a layer-2 solution on the Ethereum blockchain in October 2017.
  • Polkadot's relay blockchain uses a similar idea to sidechains called parachains to provide community governance. Polygon is a layer two approach for scaling Ethereum via sidechains.
  • Polkadot has a total quantity of 1.11 Billion DOT and a circulating supply of 1 Billion DOT. Polygon has a total supply of 10,000,000,000 MATIC coins (6,652,300,637).
  • Polkadot uses the Nominated Proof of Stake consensus mechanism. Polygon uses the Plasma Framework, which uses Proof of Stake consensus checkpoints.
  • Polkadot's relay chain lacks smart contract capabilities, but its parachains can utilize them. Polygon supports smart contracts as part of Ethereum's Layer-2 solution.

 

  Polkadot Polygon
Price change 20/21 +150% +11,000%
Market Cap $23.5 Billion+ $15 Billion+
Past Hacks None None
Popularity High High
Altcoin Rank #11 #14

 

What are the differences between Polygon and Neo?

Neo is an open-source, transparent, community-driven platform that uses blockchain technology to create the future's ideal digital environment. Polygon is an Ethereum-compatible blockchain network creation and connecting technology and architecture. Polygon is an Ethereum-compatible blockchain network creation and connecting technology and architecture.

 

  NEO Polygon
Price change 20/21 +160% +11,000%
Market Cap $1.70 Billion+ $15 Billion+
Past Hacks None None
Popularity Medium High
Altcoin Rank #69 #14

 

What are the differences between Polygon and NFTs?

In the digital asset world, nonfungible tokens (NFTs) are digital currencies that each have a distinct value, with no two NFTs having the same features or value as another. Polygon, on the other hand, is fungible, which means that one MATIC has the same value and characteristics as another MATIC.

 

What are the differences between Polygon and Solana?

Polygon and Solana are two highly interesting blockchain network projects, and comparing them will not do them credit. While Solana's environment is larger than Polygon's, it is worth noting that Polygon's community is stronger than Solana's.

The token's exchange value may not be the only criterion for judging and comparing it. What solutions the product gives and how viable the solutions are the primary factors that influence the success of any endeavor.

 

  Solana Polygon
Price change 20/21 +9,300% +11,000%
Market Cap $54 Billion+ $15 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #5 #14

 

What are the differences between Polygon and Cardano?

Polygon has a higher price than Cardano, but the market capitalization for Cardano is significantly higher. Polygon has also experienced a larger percentage price increase in the past year.

The circulating supply of Cardano is higher than that of Polygon, and Cardano features better price stability. Cardano caters specifically to crypto users and developers who seek a blockchain platform for visionaries, innovators, and changemakers.

Polygon caters specifically to the needs and objectives of blockchain developers who need cheaper transactions and faster transaction speeds. 

 

  Cardano Polygon
Price change 20/21 +2,100% +11,000%
Market Cap $42 Billion+ $15 Billion+
Past Hacks None None
Popularity Very High High
Altcoin Rank #7 #14

 

Can Polygon Exist Without Ethereum?

Yes, Polygon is a blockchain on its own, which is providing several solutions to Ethereum. Polygon is already known as Ethereum 2.0 without developers waiting for the update on Ethereum.

Polygon has completed the conversion of Ethereum into a comprehensive multi-chain platform with no issues (which earns it the description as the Internet of Blockchains). This multi-chain system is like others such as Polkadot, Cosmos, Avalanche, and others, but it benefits from Ethereum's security, active ecosystem, and openness.

 

What is an ERC-20 token?

ERC-20 is among the most important Ethereum coins. With the development of the Ethereum platform, ERC-20 has emerged as the technical standard. It is used for token deployment in all smart contracts on the Ethereum network and provides a system of standards that all Ethereum-based tokens must adhere to.

 

What is Standard Protocol?

The Standard Protocol addresses the primary issues with algorithmic stablecoins. Unviable interoperability use cases, a lack of specialized compensated oracles, and complexity tracking auctions are among the most significant difficulties in the stablecoin ecosystem.

These issues are addressed by the Standard Protocol, which generates collateralized stablecoins with elastic availability. They also advocate block incentives for Oracle suppliers, with a validator-to-provider ratio of 8:2.

 

Can Polygon function without being an ERC-20 token?

No. Polygon was created on the Ethereum blockchain, which means that MATIC will always be an ERC-20. Standard Protocol will allow for Polygon's ERC-20 token to become a full-stack scaling solution that is well-known for the transaction throughput, capacity, and scalability solution that it provides on the Ethereum blockchain.

 

Is the Standard Protocol an advantage for Polygon?

Yes, it is extremely advantageous for Polygon.

The Standard Protocol will allow the Polygon team to reach a larger audience by collaborating with other top DeFi initiatives on this robust and innovative chain. Thus, Standard Protocol became a chain-agnostic multi-ecosystem stablecoin system.