What Is Polygon Blockchain?

Polygon Blockchain

Polygon Blockchain, often referred to as “Ethereum’s Internet of Blockchains,” is a prominent Layer 2 scaling solution designed to enhance the Ethereum blockchain’s capabilities. It aims to make blockchain technology more accessible and practical for a wide range of applications while remaining closely integrated with Ethereum’s ecosystem.

What Is Polygon Blockchain (MATIC)?

Polygon blockchain is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It is designed to address some of the scalability and usability issues of the Ethereum blockchain by providing a multi-chain ecosystem that allows developers to create their interconnected blockchains, often referred to as “sidechains” or “layer 2” solutions.

Polygon’s Framework

Polygon’s architecture comprises four distinct levels, each with specific functions and services.

Ethereum Layer:

  • The Ethereum layer consists of smart contracts operating on the Ethereum network. It enables functionalities such as staking, transaction finality, and communication between Polygon chains and Ethereum.

Security Layer:

  • In addition to Ethereum, there exists a security layer that acts as “validators-as-a-service,” providing an added layer of security to the chains.

Polygon Networks Layer:

  • The networks layer is a dedicated environment for Polygon-developed blockchain networks. Each network has its own community responsible for block generation and establishing local consensus.

Execution Layer:

  • Serving as the execution layer, Polygon employs its Ethereum Virtual Machine implementation (EVM) to execute smart contracts efficiently.

Due to Polygon’s arbitrary message passing capability, Polygon chains can communicate both with the Ethereum main chain and with one another. It encourages a slew of new use cases, such as interoperable dApps and value transfer between platforms.

Features of Polygon

Some of its key features include:

Efficient Transactions:

  • On Polygon sidechains, transactions are speedy, cost-effective, and secure. Finalization occurs on the mainchain, with Ethereum serving as the primary Layer 1 base chain.

Impressive Throughput:

  • The internal testnet demonstrated remarkable performance, achieving up to 7,000 transactions per second (TPS) on a single sidechain. Scalability is further enhanced by creating multiple chains.

User-Friendly Environment:

  • Enhancing customer experience, Polygon provides WalletConnect support, native mobile applications, and a Software Development Kit (SDK). Developers find it easy to transition from the mainchain to Polygon chain.

Robust Security Measures:

  • Polygon chain operators also serve as stakers in the Proof of Stake (PoS) system, reinforcing the security infrastructure.

Public Accessibility:

  • Unlike isolated dApp chains, Matic sidechains are open to the public, permissionless, and capable of accommodating a variety of protocols.

How Does Polygon Work?

Network congestion also slows down Ethereum’s transaction processing and hinders engagement with smart contracts.

These issues lead to substantial fees for users of DeFi apps, NFT trading, token swaps, and transfers on Ethereum.

Polygon addresses these problems by using side chains to reduce gas costs. Polygon can handle up to 65,000 transactions per second, far surpassing Ethereum’s capacity of roughly 17 transactions per second. Polygon offers low fees compared to Ethereum’s average transaction cost of about $15.

Polygon provides various scaling protocols, including zero-knowledge (zk) proofs, allowing users to choose the best fit for their needs. Zk proofs enable verification of a statement’s validity without revealing additional information.

Popular integration options on Polygon include plasma sidechains, a proof-of-stake (PoS) blockchain bridge, zk rollups, and optimistic rollups. Plasma sidechains are lightweight and secure. They operate alongside Ethereum, allowing assets to move securely between chains.

Polygon blockchain introduced a PoS bridge to cater to high developer demand. This bridge lets developers create DApps on one platform without sacrificing advantages from other platforms, relieving Ethereum’s processing load.

Zk rollups validate transaction bundles off-chain, reducing data on the main chain, and thereby decreasing time and gas fees. Optimistic rollups use fraud proofs to correct fraudulent transactions, with stakes required to secure the system.

Polygon recognizes that different applications have unique needs, so it offers a comprehensive suite of scaling solutions, acknowledging tradeoffs between security, control, fees, and speed. Developers can select the best-suited solution for their applications.

Advantages And Disadvantages Of Polygon

Polygon’s strengthsPolygon’s weaknesses
Rapid Transaction Processing: Polygon achieves swift transaction processing through its consensus mechanism, which confirms transactions within a single block. On average, Polygon processes blocks in just 2.1 seconds.Not a Standalone Blockchain: Polygon operates as a Layer 2 solution built on the Ethereum platform. Consequently, if Ethereum encounters substantial disruptions or ceases to exist, Polygon’s value could be at risk.
Consistently Affordable Transaction Costs: Polygon maintains cost-effective platform usage by offering low transaction fees, typically around $0.01 per transaction.Limited Utility for MATIC: The primary purpose of the MATIC token is to govern and enhance security on the Polygon platform, as well as cover transaction fees. Unlike certain cryptocurrencies, MATIC is not commonly utilized for everyday transactions or purchases.

Polygon vs. Ethereum

Polygon blockchain serves as a secondary scaling solution that aligns with and enhances the Ethereum blockchain. Its primary objective is to enhance the Ethereum network’s capabilities for blockchain development. Polygon complements Ethereum by offering supplementary attributes related to security, blockchain independence, user and developer experience, and flexibility.

Both Ethereum and Polygon employ a modified proof-of-stake mechanism, facilitating speedy and cost-effective transaction processing. (Ethereum formally transitioned to a proof-of-stake consensus mechanism in 2022.)

Use Cases and Applications

Use CaseDescriptionSignificance
Decentralized Finance (DeFi)Polygon serves as a platform for efficient and cost-effective decentralized financial activities such as lending and trading.Enhances accessibility and reduces transaction costs in financial operations.
Non-Fungible Tokens (NFTs)Polygon is a preferred choice for NFT marketplaces and creations, offering a streamlined environment for minting, buying, and selling digital assets.Provides artists and collectors with a secure and cost-efficient platform for NFT transactions.
Gaming EcosystemThe high throughput of Polygon supports gaming decentralized applications (dApps) and in-game transactions, fostering a more responsive and seamless gaming experience.Facilitates the development of blockchain-based games with faster and more affordable transactions.
Cross-Border PaymentsPolygon facilitates cross-border payments and remittances, enabling users to send and receive funds globally with reduced transaction delays and costs.Enhances the efficiency and affordability of cross-border financial transactions.
Supply Chain ManagementUtilizing blockchain for transparent and efficient supply chain tracking, businesses benefit from Polygon’s secure and scalable infrastructure.Improves transparency, traceability, and efficiency in supply chain processes.
Tokenization of AssetsPolygon supports the tokenization of real-world assets like real estate, providing investors with fractional ownership opportunities and increased liquidity.Democratizes access to high-value assets and facilitates more accessible investment options.
Identity ManagementBuilding decentralized identity solutions on Polygon ensures users have more control over their digital identities, offering enhanced privacy and security.Empowers individuals with increased control and security over their online identities.
Governance and Voting SystemsImplementing decentralized governance and voting systems on Polygon enables communities to engage in decision-making processes with reduced costs and increased accessibility.Enhances democratic decision-making in various community-driven initiatives.
Healthcare Data ManagementUtilizing blockchain for secure and interoperable healthcare data storage, Polygon ensures improved data integrity, security, and accessibility in healthcare systems.Enhances the security and accessibility of healthcare data in digital environments.
Content Delivery Networks (CDN)Building decentralized content delivery networks on Polygon facilitates faster and more reliable content delivery, benefiting content creators and distributors.Improves the speed and reliability of content delivery while reducing associated costs.

Future of Polygon

The future of Polygon blockchain appears promising, with its scaling solutions continuing to address Ethereum’s limitations and provide faster and more cost-effective transactions. As blockchain technology evolves, Polygon is likely to play a pivotal role in enhancing scalability, security, and usability within the crypto ecosystem.

FAQ

How much are MATIC Coins Worth?

Throughout its history, MATIC tokens on Polygon have generally traded at prices below 5 cents. While there has been substantial appreciation, MATIC has yet to surpass the $3.00 mark, with a trading value of approximately $0.75 as of September 22, 2022.

How many Polygon Coins are there?

MATIC’s total supply is capped at 10 billion tokens, with the majority, specifically 8.73 billion MATIC tokens, having already been issued.

How can I Buy MATIC?

The simplest method to acquire MATIC tokens from Polygon is by using a prominent cryptocurrency exchange. Start by creating an account on platforms such as Coinbase or Kraken, and then deposit your local currency into the account. Additionally, you’ll require a digital wallet, which can either be self-hosted or provided by the cryptocurrency exchange.

Conclusion

In conclusion, Polygon blockchain is a vital Layer 2 scaling solution that significantly enhances the Ethereum blockchain’s capabilities. It empowers developers and users by providing faster, more efficient, and cost-effective transactions, making blockchain technology more accessible and practical for a wide range of applications.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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