Polygon Project Overview
Formerly known as the MATIC Network, Polygon is an Ethereum-based Layer-2 scalability platform.
It allows interchain communication, the development of new chains, and interoperability compatible with the Ethereum network.
The platform refers to itself as “Ethereum’s Internet of Blockchains” as one of its preeminent missions is to integrate scalable solutions to create the foundation for a multichain Ethereum ecosystem.
Since Polygon is a newly introduced technology still under development, regular updates are introduced to embellish the framework for further enhancement.
This article aims to discuss the implementation and application of these new updates in reference to their impact on blockchain technology and the amount of potential they possess.
Understanding How Polygon Works?
Polygon utilizes its dynamic framework and tenacious protocol to provide interoperability and communication amongst blockchains within Ethereum.
It has an intricate set of modules and systems to ensure its functionality.
The following is a breakdown of some of the major elements that combine to enable Polygon to function at its optimal potential.
Proof of Stake (PoS) Sidechain
Blockchains launched on the Ethereum network are based on a Proof-of-Stake sidechain. Thus, enabling transactions to be finalized on the Ethereum chain after being reviewed by a network of validators off the blockchain.
This reduces the burden off of the main blockchain and allows a smoother flow of traffic-free of congestion.
Off-chain validation of transactions through side networks also results in lower gas fees and efficient transactions for developers. Currently, Polygon’s PoS sidechain acts as a Commit chain to the Ethereum main chain supporting transactions concerning over 80 dApps without congestion.
Robust Scaling Mechanism
In addition to its Plasma and PoS sidechains, Polygon also appropriates a wide network of complex scaling modules to allow wide adaptability of the Ethereum network.
Its “Optimistic Rollups,” for example, provides a layer-2 solution for off-chain secure transactions. In addition, Polygon is also developing Validium chains, Shared security chains, ZK rollups, and other scaling protocols to allow interchain communication.
The Polygon Network supports two types of chains, Stand-alone and MATIC PoS chains.
The former is self-sovereign chains that allow external chains to communicate with the Ethereum network, while the latter refers to secure chains compatible with the Ethereum network allowing intra-network communication.
Since Stand-alone chains have their own pool of validators, they provide developers with absolute autonomy and independence and thus act as a suitable option for established projects and enterprises.
Security-focused projects and start-ups, on the other hand, can benefit greatly from MATIC PoS chains as they provide developers with a professional pool of validators within or outside the Ethereum network.
Layer-2 scaling solutions provided by Polygon introduce off-chain alternatives to the transactional activity taking place on the Ethereum network.
For example, they use sidechains to execute transactional confirmations that are processed and executed on the mainchain. This reintroduces system proficiency throughout the network and reduces congestion.
Polygon’s native token MATIC is used by developers to create dApps on Polygon by paying tokens in exchange for developmental services provided by Polygon.
MATIC supports the system that allows data to be transferred and inspected between chains.
These tokens can be stored in MATIC wallets where users can stake and invest their tokens independently.
Polygon – Ethereum’s Internet of Blockchains
Ethereum has eventually become a popular decentralized blockchain platform that establishes a peer-to-peer network so users can hold assets, transact money and build apps without a central authority.
While the emerging blockchain provides unique solutions to problems with Bitcoin, it still struggles to resolve scalability issues. As a distinctive and reliable scaling solution, Polygon has recently emerged as Ethereum’s internet of blockchains.
Polygon and Its Relationship with Ethereum
Polygon is a layer-2 scaling solution that functions in addition to Ethereum’s solutions to resolve network saturation, slow speed, and high transaction cost issues.
The blockchain framework allows the development of scalable solutions that empower the Ethereum ecosystem to pave the path for a better user experience.
It is described as a multichain Ethereum ecosystem, meaning that the new connected blockchains, known as layer-2 or side chains, revolve around the central blockchain.
Besides having a limited governance utility, MATIC (ERC-20) is the utility token of the network and is primarily used to pay for transaction fees.
Most developers in this ecosystem use the Polygon SDK stack to deliver the desired results. Clients, stakeholders, and creators are other entities existing in the system.
Polygon combines the scaling features of Ethereum and connected blockchains to facilitate interfacing between blockchain networks. Ethereum-compatible blockchain networks are known as Polygon chains, divided into two sub-categories:
Secured and Stand-alone chains that function on the Proof-of-Stake mechanism. An important component, the Polygon PoS chain, supports smart contract development using Plasma scaling technology.
Features of Polygon
Polygon protocol and framework make up modern Polygon technology. With the framework, Ethereum-compatible blockchains are installed smoothly, and different functions are performed efficiently, including problem-solving, staking, and consensus.
Protocol assists in exchanging messages between two chains and provides security by Ethereum or validators.
Polygon makes Ethereum accessible for all through its distinctive features, including scalability, security, developer and user experience, and Ethereum compatibility.
It is compatible with existing Ethereum tools that allow it to integrate these and its chain features to make a useful impact on projects.
Developers require minimal protocol knowledge and can get quality experience on Polygon with no token deposits, fees, or permissions.
Future of Polygon with Ethereum
Until 2019, Polygon had earned 5.5 million USD from token sales to reputable institutions and individuals around the globe.
This number will likely increase with Ethereum’s popularity and the demand for low-cost layer two scaling solutions.
Recently there was a momentary increase in Polygon’s daily users that crossed those of Ethereum. Its Bridge is the fifth most used dApp on Ethereum.
Experts think it may soon support decentralized financial applications (DeFi) without Ethereum’s support.
As Polygon is set to become a permanent solution, it is known as Ethereum’s internet of blockchains continuously developing, with new scaling solutions being added to its domain.