What is Polygon (MATIC)?

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What is Polygon (MATIC)?

Table of Contents

Introduction

Launched in 2017 by Ethereum developers Jayanti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, Polygon previously known as Matic is a Layer 2 Ethereum scaling solution built to fill in the gaps and scaling issues faced by Ethereum.

The key solutions the Polygon (MATIC) developers were trying to create were protocols and a framework for building and connecting Ethereum-compatible blockchains using a variety of technical applications.

After a few years of initial building, the then-Matic Network went live in 2020 attracting mass interest from various DeFi organizations.

However, as the project and vision grew, the core development team realized they had more to offer than just scaling Ethereum.

Therefore to replicate this new vision, they changed their identity to Polygon which entailed their multifaceted solutions and the promise of a simpler framework for building interconnected networks.

How does the Polygon (MATIC) network work?

Polygon works on a Proof-of-Stake blockchain model where it functions primarily through sidechains known as Commit chains.

These are transaction networks that operate adjacent i.e. side to a main blockchain which in this case is Ethereum.

Here, batches of transactions are bundled together in these Commit chains and confirmed in bulk before being returned to the main chain.

In addition to the use of sidechains, the architecture of Polygon consists of a Software Development Kit (SDK) which is the core software needed to build D’apps as sidechains which in turn connects back to the main blockchain.

To connect these sidechains, Polygon developers can use 3 different scalability functions:

  1. zk-Rollups: Allows you to combine multiple transfers into one.
  2. Plasma Chains: Batches transactions into blocks on the Ethereum blockchain and submits them as a single submission.
  3. Optimistic Rollups: similar to Plasma Chains, but with Ethereum smart contract scaling capabilities.

The MATIC Token

The native token of the Polygon network is MATIC, which has a current circulating supply of 6.3 billion, while the total token supply (hard cap) is 10 billion.

In addition to being a native token, MATIC serves several distinct functions, including providing network fees generated from the computational power the network exerts to transfer data via a gas-based mechanism.

Through this mechanism, developers can also use Polygon’s development framework and platform to develop DApps and pay MATIC tokens to benefit from the platform’s features.

Polygon has also created its very own MATIC wallet to support MATIC Tokens which gives its holders a direct option to stake their tokens and manage their own investments across the Polygon Network.

Key Utilities

  • The MATIC cryptocurrency is the native currency of the Polygon network. It can be used for staking and paying transaction fees.
  • The Polygon network allows users to earn MATIC tokens by providing computational resources and services. This can be done by validating transactions or by executing smart contracts on the network.
  • Furthermore, users are allowed to vote on network upgrades by owning and staking MATIC, with each vote being proportional to their stake.

Where to buy MATIC?

In addition to offering Polygon (MATIC) for trading on various cryptocurrency exchanges, including DIFX, they also provide a comprehensive guide on how to buy MATIC for interested users. On DIFX, MATIC is available as an MATIC/USDT pair, enabling users to conveniently trade the cryptocurrency.

Sign up for a DIFX account today and start trading!