Learn Cryptocurrency
13 Jan 2022

Polygon (MATIC) explained: Complete Beginners’ Guide

Devansh Sinhal

Polygon MATIC is a scalability platform designed to help Ethereum-supported blockchains connect with each other. Polygon is also used to build new blockchains on Ethereum for businesses and institutions in need of decentralised payments solutions. The network refers to itself as “Ethereum’s internet of blockchains” because one of its primary missions is to support a multichain Ethereum ecosystem.

Polygon can be thought of as the universal adapter in your home/office computer setup. Instead of dealing with an untamed mess of wires, connectors, and adapters that don’t always work with one another independently, you choose a universal docking station that helps you bring everything together in one place. 

In this blog, we will explore the history and future of Polygon MATIC, how it works, and understand if there are any benefits to investing in the coin.

Key Takeaways

  • Polygon MATIC is a scalability platform designed to help Ethereum-supported blockchains connect with each other.
  • Initially known as the Matic network, Polygon was founded in India in October 2017 by founders Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun.
  • The answers that Polygon aims to provide are some of the biggest ones in today’s technological environment – scalability and interoperability;
  • Polygon MATIC was one of the most profitable cryptocurrencies in 2021, starting at $0.0178 and ending at an all-time high of $2.92.
  • The market cap of MATIC is approximately worth $15 billion at writing.

Understanding Polygon MATIC

Polygon MATIC is the glue that aims to hold different Ethereum elements together. It is specially designed to work seamlessly with Ethereum’s existing infrastructure. Polygon provides a framework for other blockchains to interact with each other along with sidechains and other sovereign blockchains like Bitcoin.

That is why Polygon is also known as a layer-2 aggregator – it aims to create an ecosystem that makes Ethereum’s elements work smoothly with one another and with aspects from other independent blockchains.

With Polygon, Ethereum developers don’t have to worry about one protocol not working with another token or one smart contract incompatible with a different framework. MATIC brings everything together. 

So the next time you’re stuck with a Lightning cable to charge your laptop, do yourself a favour and buy a charging equivalent of the Polygon blockchain.

Whatever that is.

History of Polygon

Initially known as the Matic network, Polygon was founded in India in October 2017 by founders Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. The founders are, coincidentally, also India’s first crypto billionaires. They were the first to address the issues associated with Ethereum – high gas fees and network bottlenecks through Polygon’s white paper. They formed a team that believed in creating a seamless and borderless world that could run on Ethereum efficiently to get around them.

How Does Polygon Work?

Polygon MATIC exploits the security and functionality of Etherum while converting it into a complete, multichain system. What started as an ecosystem focusing on simple scaling solutions to reduce ETH gas fees has now evolved to become a much more complex platform dedicated to building fully interoperable blockchains.

Now, using Polygon, developers can launch pre-customised blockchains with unique features. All networks found on MATIC are based on PoS (Proof-of-Stake), which helps leverage scalability and energy efficiency in the long run.

Polygon is actively working on massive scaling solutions, with Optimistic Rollups being the next major update. While Polygon doesn’t release exact upgrade roadmaps like other blockchains, it ensures that the network is constantly free of bugs. As a layer-2 aggregator, Polygon is also looking to dip its toes into launching independent blockchains like Validum Chains, etc.

Future of Polygon (MATIC)

Polygon visualises a world that exists without limiting borders as a prime objective. The dev team values a world where people can exchange value freely without being accountable to third parties or gatekeepers. Polygon has, in the past, brought many changes through the blockchain that complement its long-term vision.

For example, the network provides a reasonably simple framework for developers who want to develop their Ethereum-compatible blockchains out there. Thanks to Polygon’s interoperability, new chains can be added or deleted on Ethereum’s networks with only a few clicks.

The problems that Polygon aims to solve are some of the biggest ones in today’s world. These include workarounds for Ethereum’s high gas fees, a solution for slow transaction speeds, and the overall reduction in transaction bottlenecks on Ethereum.

Benefits of Investing in Polygon (MATIC)

Why is Polygon MATIC a good investment option?

benefits of investing in polygon

  • It’s a very popular DeFi blockchain – It has emerged as one of the market leaders in the DeFi space owing to ultra-low fees and instant finality. The current market cap of MATIC is approximately worth $15 billion at writing.
  • They’re building amazing things – According to the Polygon blog, the dev team is working on a project called Polygon Zero – a highly scalable and Ethereum-compatible ZK-Rollup. They recently acquired Mir, which developed the world’s fastest scaling ZK technology.
  • Polygon is partnering with Reddit to launch a $200 million dev fund. In December 2021, Polygon announced that they partnered with Alexis Ohanian to launch a $200 million fund to invest in Polygon’s vision of social media, gaming, and Web 3.0 projects.

How To Invest in Polygon in India

If you want to buy Polygon (MATIC) in India, the best platform you can use is CoinSwitch Kuber. CoinSwitch Kuber is India’s most popular crypto platform, with more than 14 million users using the app actively! The exchange supports Cardano, Ethereum, Bitcoin, and 80+ other coins and tokens that you can buy, trade, or sell.

If you’re a believer in the Polygon narrative and want to bet on its long-term growth, here are some steps you can take to set up your CoinSwitch account and get started.

  • Step 1: Open CoinSwitch – The first step is to, of course, download the CoinSwitch Kuber app on your Android or iOS mobile phone. You could also visit our website and enter your phone number, potent, and we’ll SMS you a link to the app!
  • Step 2: Register and open an account – Once the app has been successfully installed, you will be asked to enter your mobile number for OTP verification. Once the OTP has been received and entered by you, you will be asked to set a PIN on the app for added security.
  • Step 3: Complete your KYC – To complete this step, head on to the ‘Profile’ section of the app in the bottom right corner and click on ‘User Verification’. Enter your name, PAN number, date of birth, and email address for primary verification of your identity. Once this is done, you will be asked to upload your PAN card’s picture along with a picture of a government-issued ID card to complete the verification. On CoinSwitch, the KYC process is completed within 2 minutes!
  • Step 4: Add your bank account details – To transfer funds from your bank account to the CoinSwitch app, you need to provide the app with the relevant information. These include your account number and IFSC code only. The app sends Re. 1 to your account to verify if the details are correct and if they are, the account is linked to your profile.

You’re now free to use the CoinSwitch wallet to buy, sell, or store Polygon (MATIC) coins. Investing in the coin is also very easy. 

All you need to do is:

  • Click on the currency you want to buy (in this case, MATIC)
  • Enter the amount, and click Buy. 

That’s it! The corresponding amount of cryptocurrencies gets credited to your CoinSwitch crypto wallet, which can then be monitored under the Portfolio section of the app. Click on the link if you want to directly convert Polygon into INR.

Conclusion

Polygon MATIC was one of the most profitable cryptocurrencies in 2021, starting at $0.0178 and ending at an all-time high of $2.92. That’s a 16,000% increase in just a year!

Frequently Asked Questions

Why would you use Polygon?

Polygon is an interoperability blockchain compatible with Ethereum. It connects different ETH protocols with other independent blockchains.

Is it good to invest in Polygon?

Polygon is a volatile crypto asset that’s subject to market risks. Investors should conduct their own research before investing.

How does Polygon work?

Polygon MATIC exploits the security and functionality of Etherum while converting it into a complete, multichain system.

Is Polygon safe?

Polygon MATIC is a volatile cryptocurrency. While experts claim that it is a fundamentally-sound asset, investors should assess their risk on their own before investing.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Devansh Sinhal

Content Writer

Table of content