Ethereum is known for being a revolutionary force in blockchain technology. Intending to decentralize and automate services and processes across the globe, Ethereum is currently the second-largest cryptocurrency.
However, loopholes and complications arising within the network have greatly undermined its success and have highlighted the need for amendments and modifications.
Motivated by the immense potential Ethereum holds, many within the blockchain industry have been working towards finding solutions for congestion and scalability issues within the network.
The Polygon Network has shown potential to be the savior of Ethereum, which is what this article will discuss.
What are Polygon and Ethereum?
Both Ethereum and Polygon are networks created based on blockchain technology – efforts to decentralize the internet and the services it provides.
While based on a similar set of codes, both these networks vary immensely from Bitcoin, a term often kept synonymous with blockchain technology.
Bitcoin is a form of decentralized currency; Ethereum is the infrastructure for creating applications premised on the concept of removing intermediaries.
How Does Ethereum Work?
Brought to life by Vitalik Buterin in 2014, Ethereum can be best described as a Do-It-Yourself platform for decentralized programs, also known as ‘dApps .’These applications essentially are void of a sole owner and operate on the programming language Solidity.
The Ethereum network is vast and is run by thousands of independent computers. This network has its own currency known as Ether which is used as a medium of exchange.
Smart Contracts are the mechanism upon which Ethereum operates.
Similar to real-life contracts, this concept executes a set of conditions written by the developers and handles all aspects of the contract, such as enforcement, management, performance, and payment.
Problems with Ethereum
The backbone of the Ethereum network is the ‘gas fee,’ which is a payment made to miners who provide the computational power to run the network. Since this operates on the model of market forces of supply and demand, surges in popularity automatically result in higher prices.
This increased demand also results in network congestion as the current servers are not adequately designed to handle greater traffic.
The ‘Proof-of-Work’ protocol is a pre-requisite for establishing a connection on the network and demands a considerable amount of electricity, which raises questions regarding pollution and sustainability.
What is Polygon?
Polygon, the rebranded form of MATIC, is an Ethereum Layer-Two protocol designed to tackle the problems associated with the use of Ethereum. It utilizes the main Ethereum code and has an Ethereum Virtual Machine (EVM).
This is referred to as the Plasma framework, considered by developers to be a sidechain solution, allowing them to create and market their dApps more efficiently. The creation of Polygon stemmed from the increase in gas prices of Ethereum, urging the blockchain community to invent robust scaling solutions.
Polygon is a network that is accessible and user-friendly for the Ethereum community as it provides a scaling solution while being fully compatible with EVM. The security protocol used by Polygon is optional, which essentially leads to linked blockchains forming direct connections with the Ethereum mainchain.
How does Polygon Work in the Digital Space?
Polygon is designed to tackle the problems regarding scalability and expense by employing two main solutions. Firstly, Plasma chains and Layer-Two scaling, and secondly, a Proof of Stake (PoS) Ethereum sidechain.
Tackling the Scaling Problem
Layer-Two Scaling and Side Chains are the primary methods used by Polygon to counter the scaling problem plaguing the Ethereum network.
Layer-Two scaling relies on the main security interface of the Ethereum blockchain. It handles transactions off-chain, improving transaction speed and transaction throughput.
Transaction throughput refers to the rate at which valid transactions are committed by a blockchain in a defined period. This can be Application-Specific, such as payment channels, or used for any Arbitrary Contract Execution such as Optimistic Rollups.
On the other hand, sidechains rely on independent security protocols with a unique consensus mechanism. MATIC PoS-chain is an example of such a chain. Polygon aims to create an ecosystem that connects multiple scaling solutions such as the previously mentioned.
Ethereum Compatible Blockchain Networks
There are two major networks, stand-alone and secured chains. Stand-alone networks have their own security model, such as Proof-of-Stake (PoS) or delegated Proof-of-Stake (DPoS). These networks, therefore, operate autonomously and flexibly.
Conversely, secured chains utilize security in a service model. These can be direct Ethereum services such as Fraud Pools used by Plasma or services provided by professional validators run in the polygon ecosystem.
While security chains offer the highest level of security, they lack attributes such as sovereignty.
Polygon Network Architecture
The architecture comprises four distinct layers. Starting with the Ethereum layer used by the Polygon chains as a base layer.
This enables the Polygon network to carry out tasks such as finality, dispute resolution, staking, and communicating with the Ethereum network.
This is followed by the Security layers, which provide security through service using validators. It takes the form of a meta-blockchain running parallel to Ethereum.
The next layer comprises sovereign blockchain networks and is called the Polygon Networks Layer. The Execution Layer concludes the framework and is responsible for interpreting and executing transactions.
Certified NFT Professional (CNFTP) Certification Program – Enroll NowThe MATIC PoS Sidechain and Polygon Bridge
What is the MATIC PoS Sidechain?
Sidechains are independent blockchains compatible with Ethereum, made possible using the same Ethereum Virtual Machine (EVM). They operate on a differentiated security mechanism with an independent consensus mechanism.
MATIC PoS is an example of such a chain that has the attribute of being permissionless while running parallel to the main Ethereum chain. PoS refers to Proof of Stake – a security mechanism that operates with its own set of validators.
This is the security protocol that the Matic Sidechain is primarily governed by. However, it also draws security from the main Ethereum network in areas relating to validator staking and checkpoints.
As mentioned earlier, the sidechain makes use of the EVM to construct a system of compatibility with Ethereum through which migration of Ethereum-based smart contracts is made possible between the two chains.
The Polygon Bridge and How it Works
We have already discussed the Polygon network in harmony with the Ethereum network, with assets migrating between the parallel chains.
The question then arises – how are these assets interchanged between the chains? This is where the Polygon Bridge comes into play.
Firstly, the assets are transformed into tokens used as a medium of exchange.
These tokens are either Ethereum Request for Comment (ERC) or Non-Fungible Tokens (NFTs). Keeping in line with Ethereum’s vision of creating a decentralized ecosystem, the Tokens are transferred without needing to dispense trust in a centralized entity.
Essentially, the entire process is free from the risk of intervention from intermediaries or market limitations such as liquidity.
Polygon tokens are stamped when the Ethereum tokens are locked into it by the protocol. When the opposite exchange occurs, Polygon tokens are burned, and Ethereum tokens are unlocked. For the exchange to take place, the user must be in possession of a compatible cryptocurrency wallet such as Meta Mask.
Certified NFT Professional (CNFTP) Certification Program – Enroll NowTypes of Polygon Bridges
The Polygon Bridge can be classified into two main categories – the Proof of Stake Bridge or the Plasma Bridge. Both carry out the same task; however, the withdrawal time varies with the category chosen.
The Proof of Stake Bridge
Similar to Sidechains, the Proof of Stake Bridge makes use of the PoS independent consensus mechanism. While the deposits are instantaneous and flexible, withdrawal time has the potential to be drawn out. Ether and ERC tokens are supported by this bridge.
The Plasma Bridge
While in contrast to the PoS Bridge, the Plasma Bridge is more rigid, it offers the users a more secure transaction, mainly owing to its Plasma Exit mechanism. This bridge is compatible with ERC-20 and ERC-721 tokens, including ETH and MATIC.
An anchor contract is developed between the two chains to begin the transfer process. If an ETH token is deployed into the Plasma chain via the Ethereum chain, it takes the form of ETHX. Similarly, moving an ETC token from a Plasma chain to an Ethereum chain will transform the original token into ETCX. Both ETCX and ETHX remain native tokens and are therefore compatible with this mode of transfer.
Concluding Statement
While the world of Blockchain retains an upward trajectory, the need for innovation and improvement becomes increasingly potent.
This demand has manifested into projects such as the Polygon Network, which not only enhances the experience of existing technology but provides for a more intensive and diverse platform for developers to invest in the crypto space.
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We love that you’re enjoying the cool stuff here. Our legal consultant tells us we should let you know that you should assume the owner of this website is an affiliate for people, business who provide goods or services mentioned on this website and in the videos or audio. The owner may be compensated and should be if you buy stuff from a provider. That said, your trust means everything to us and we don’t ever recommend anything lightly. Thank you