Ehthereum is a popular blockchain in the crypto space, however Ethereum has a huge limitation in terms of scale, which is a barrier to reaching many new users. Large transaction demand means high fees on the network. Although, the London Hardfork with EIP-1559 was successfully activated on Ethereum at the beginning of August, however, this only helps to “stabilize” transaction fees without having to reduce gas fees as many people mistakenly believe. . Since Ethereum is almost completely decentralized, Ethereum 2.0 will take a long time to mature and launch, this number can be calculated in years. Therefore, layer 2 solutions on Ethereum are attracting much attention from the community.
Polygon is an Ethereum sidechain and it is one of the most promising layer two scaling solutions to date. After the recent growth, a lot of people wonder what Polygon is and how it works.
Through this article, GTA will work with you to find the answers to both of these questions and dive into what makes Polygon different from its current opponent? Why Polygon is likely to create the next big trend in the crypto ecosystem.
Update the latest information about the Polygon ecosystem
What is Polygon Network?
Launched in 2017, Polygon is a layer two (layer 2) scaling solution based on Ethereum. It uses the Proof of Stake (PoS) consensus mechanism to secure transactions. Transaction data from Polygon is also regularly uploaded to the Ethereum main chain to ensure the integrity of the blockchain (i.e. to ensure that the information contained in transactions can be verified as correct).
Polygon can scale to hundreds or thousands of transactions per second, and as a result, transaction fees on Polygon are significantly cheaper than fees on the Ethereum mainchain (mainchain).
*Polygon was originally called the Matic network and the name may still be used in some cases.
Polygon Network’s main goal is to improve user experience by processing ERC-20 tokens quickly and efficiently so that these tokens can be interoperable with dApps on the network. Polygon uses the Plasma framework to make it easy for developers to build decentralized applications on top of Polygon.
What is plasma?
Plasma is a framework for creating decentralized applications that can easily scale and interact seamlessly with each other. Originally proposed by Vitalik Buterin and Joseph Poon (co-authors of the Lightning Network), Plasma aims to solve Ethereum’s scaling problems.
Essentially, Plasma includes a framework of secondary chains that reduces unnecessary interactions with Ethereum. As you know, the power of Ethereum comes from its ecosystem with decentralized applications using smart contracts, DeFi solutions, NFT projects and even GamFi. However, for this to really work, Ethereum needs to be able to scale. Plasma is an important step towards achieving greater Ethereum scalability, equivalent to SegWit on Bitcoin.
The Plasma framework acts as a hierarchical tree, with several smaller chains branching off from the main blockchain. These smaller chains are called child chains or Plasma chains. Polygon’s side chain is a Plasma-based EVM powered chain on which smart contracts can be deployed instantly.
How Polygon works
Polygon is known as a commit chain.
– If users on Ethereum want to use Polygon, they can lock up ERC-20 tokens in a smart contract controlled by the Polygon network.
– The Polygon network verifies that the coins are locked in the smart contract and then a corresponding amount of tokens on the Polygon network are minted.
– Users are given access to tokens on Polygon and they can use them in any Dapp built on the network.
In general, users commit their tokens to smart contracts on Polygon and receive corresponding tokens on Polygon Network. If a user wants to exit the network, Polygon will burn their tokens. Once the token has been burned, the smart contract on Ethereum will issue the user’s Ethereum-based token and the transition from Polygon to Ethereum is complete.
Transactions on the Polygon Network are secured by the Proof-of-Stake consensus mechanism. Similar to EOS, Polygon uses block producers who are responsible for proposing and verifying new blocks. Block producers also make it easier to join and exit the Polygon ecosystem (mint new tokens when users join the network and burn them off).
Since only a few block producers participate in securing the Polygon Network, the network can scale to hundreds or thousands of transactions per second. Block producers are paid in MATIC tokens as long as they meet the basic requirements for validation. Anyone can apply to be a Block Producer. Here are some of the requirements to become a Block producer, detailed in the Polygon whitepaper.
– History of uptime
– Dynamic scalability
– Location diversity
Similar to the parachains on Polkadot, Polygon developers expect that there will be hundreds or even thousands of chains running in parallel. Having multiple chains greatly increases scale on the Polygon network and ensures that transaction fees stay low. While this is yet to be proven, the Polygon team has stated that, in theory, the network can scale to millions of transactions per second.
To ensure maximum security, all transactions on Polygon are grouped together, checked for validity, and then written to the Ethereum main chain.
Highlights of Polygon
Here are three of the features that make Polygon unique from other layer-2 scaling solutions:
- Polygon has its own Consensus Mechanism for the network
Most layer-2 scaling solutions do not have their own consensus mechanism, they depend on Ethereum for security. Polygon’s PoS consensus mechanism allows for more protocol flexibility and gives Dapp developers more ways to customize their projects.
Currently, Polygon only works with Ethereum. However, that could change in the future, as Polygon now plans to integrate with other blockchains in the near future. Polygon can also act as a bridge between blockchains, allowing Ethereum dApps to communicate with dApps on other blockchains, such as Polkadot and Binance Smart Chain.
When users withdraw their tokens from Polygon to Ethereum, the whole process takes only 1 to 3 hours, which sounds like a long time, However, compared to other layer two scaling solutions, the withdrawal Money going on the Polygon network is actually pretty fast.
For example, Optimistic rollups may require a lockup period of one to two weeks before users can access their tokens.
There are hundreds of Ethereum Dapps running on Polygon. Popular DeFi lending platform Aave has over $1 billion in assets locked up, and decentralized exchange Sushiswap is also up and running on Polygon.
Gaming is very popular on the Polygon network because players can transfer NFT items in the game at a fraction of the cost of Ethereum. Some of the most popular NFT apps and games on Polygon include: Cometh, Neon District, Zed Run, Aavegotchi, Blocklords, Drakons, and more.
An increasingly popular dApp built on top of Polygon is Quickswap, a decentralized exchange that provides a fast and convenient experience for traders. The average fee on Quickswap is less than a cent, when compared to fees of up to $100 on Uniswap. This improvement is possible because the exchange operates off-chain (off-chain), a setup that is seen as the next generation of DEX and the future of DeFi.
Since Polygon’s system architecture is similar to Ethereum’s, developers can easily launch their new Dapp instance on Polygon.
Polygon Network development team
Polygon was co-founded by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, two experienced blockchain developers and a business consultant. As such, Polygon has a solid background, experience and expertise. With a team of 34 people working around the world, Polygon has blockchain-savvy tech experts supporting the project.
Advisors and Partnerships
Polygon team is mentored by cryptocurrency experts from senior positions in several major crypto companies, including Esteban Ordano – former software engineer at BitPay, and Founder and Chief Technical Officer of Decentraland . Also from Decentraland, as Project Lead, Ari Meilich – formerly co-founder of Benchrise. Polygon is also mentored by Pete Kim, who holds the position of Head of Engineering for Coinbase Wallet.
A project can only be good with good developers and the team behind it. Polygon Network is created, built and developed by an active team of blockchain and crypto enthusiasts. The Polygon development team is working with its companions to create a block built for future developments and expansions.
Polygon (Matic) Network uses an innovative hybrid approach to help the Ethereum network achieve scalability. Polygon does this by providing a fast, reliable and efficient solution to the problem of slow transaction times and expensive gas fees on Ethereum. The platform also allows developers to easily and quickly deploy Ethereum smart contracts on Polygon sidechains.
Currently, there are several projects working towards the common goal of accelerating the expansion of the Ethereum network. The problem of network congestion has been a top priority issue for many years for the Ethereum ecosystem. However, Polygon is one of many projects moving towards a range of scaling solutions to leverage the full potential of DeFi and support interoperability between blockchains and dApps in addition to Ethereum.
Polygon Network already has an impressive range of integrations and shows great strides at launch. With a market capitalization of 17th at $9,444,905,090 (according to coinecko), the project has plenty of room to grow and is proving to be an attractive solution for scaling and interoperability.
Here is all the information GTA Research team has researched Polygon Network and is not investment advice. Hope this article will help you get the necessary information and give your personal opinion about the project.
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