Polygon MATIC is a cryptocurrency and a technology platform that enables blockchain networks to connect and scale. In this blog post we will explain what is polygon matic and how polygon matic works? We will also discuss benefits and use cases of polygon MATIC.
What is Polygon Matic?
Polygon is a project that endeavors to solve certain challenges of Ethereum such as expensive gas fees, low throughput and unsatisfactory user experience. Polygon is not an independent blockchain but a layer-2 solution that operates on top of Ethereum facilitates faster and more affordable transactions. Polygon supports interoperability between diverse blockchains forming a network of compatible chains that can exchange value and information.
Polygon was formerly identified as Matic Network and its native token is still referred to as MATIC. The token is employed to pay for gas fees on Polygon as well as to stake and secure the network. MATIC is also utilized for governance, enabling holders to participate in voting on proposals and upgrades.
How Polygon Matic Works?
Polygon employs a combination of technologies to achieve its objectives of scalability and interoperability. Here some of the main Polygon MATIC components are –
Polygon SDK – A framework that empowers developers to generate and deploy their own blockchains on Polygon. These blockchains can be tailored for diverse use cases and have their own consensus mechanisms, validators and security models.
Polygon PoS Chain = A proof-of-stake POS blockchain that functions as a hub for linking various Polygon chains. The PoS chain is secured by MATIC stakers who validate transactions and receive rewards. The PoS chain also connects to Ethereum through a bridge contract that enables transfers of assets and data between the two networks.
Polygon Plasma Chains – A group of blockchains that use Plasma a layer-2 scaling solution that bundles transactions on a sidechain and periodically records them to Ethereum. Plasma chains provide high throughput and low fees but necessitate users to trust the operators of the sidechain.
Polygon Validium Chains – A group of blockchains that use Validium another layer-2 scaling solution that combines zk-rollups and data availability proofs. Validium chains offer higher security than Plasma chains as they do not rely on operators but they have lower data availability as they store data off-chain.
Polygon zk-rollup Chains – A group of blockchains that use zk-rollups a layer-2 scaling solution that employs zero-knowledge proofs to compress transactions and verify them on Ethereum. zk-rollup chains provide high security and low fees but they have limited functionality and complexity.
How to Buy Polygon MATIC?
There are several approaches to acquire Polygon MATIC depending on your preferences and location. Below some methods to buy matic –
Buy MATIC on a cryptocurrency exchange – You can purchase MATIC with fiat currency USD, EUR, INR OR cryptocurrency (BTC, ETH) on a cryptocurrency exchange that supports MATIC. Some of the prevalent exchanges that list MATIC are Coinbase, Binance, Kraken, Huobi, OKEx and KuCoin. You will need to create an account on the exchange, verify your identity, deposit funds and place an order for MATIC.
Buy MATIC on a decentralized exchange DEX – You can purchase MATIC with another cryptocurrency (such as ETH or USDT) on a decentralized exchange that operates on Ethereum or Polygon. A DEX is a peer-to-peer platform that does not required intermediaries. Some of the widespread DEXes that support MATIC are Uniswap, SushiSwap, QuickSwap, Curve, and Balancer. You will need to connect your wallet (such as MetaMask or Trust Wallet) to the DEX and swap your tokens for MATIC.
You can purchase MATIC using your credit card or bank transfer on select platforms that provide this service. For instance Simplex or MoonPay allows you to buy MATIC using your credit card or bank account. To complete the transaction you will need to furnish your payment information, personal details and the MATIC will be transferred to your wallet address.
What is Polygon Matic Used For –
Polygon Matic has various use cases and benefits for both developers and users. Users can interact with DApps more efficiently and affordably with Polygon Matic’s faster and cheaper transactions than Ethereum. On the other hand developers can create and deploy their own layer-2 solutions with ease, thanks to Polygon Matic’s flexible and user-friendly platform without compromising security or compatibility with Ethereum. Some of the well-known DApps running on Polygon Matic include Decentraland, OpenSea, QuickSwap, Aave and more.
Benefits of Polygon Matic –
Polygon Matic offers several advantages over other competing blockchains or layer-2 solutions. Some of these benefits include –
- Scalability – On a single chain Polygon Matic can handle up to 65,000 transactions per second (TPS) compared to Ethereum’s 15 TPS. This means that Polygon Matic can process high-volume and high-frequency transactions with ease.
- Security – Through validators who stake their tokens to secure the layer-2 chains Polygon Matic leverages Ethereum’s network security. If there is any malicious activity or attack validators can be penalized or slashed by the network.
- Compatibility – Polygon Matic is fully compatible with Ethereum’s ecosystem, which implies that any EVM-compatible DApp or smart contract can run on it without requiring any migration or modification. This means users can interact with Polygon Matic using their existing Ethereum wallets and tools.
- Interoperability – Between different layer-2 chains or other blockchains, Polygon Matic supports cross-chain communication and transfers. This allows for seamless integration and collaboration between various projects and platforms in the crypto space.
