You might be familiar with the crypto known as Polygon (MATIC), but do you know anything regarding the Polygon network? Polygon is an Ethereum scaling platform that operates without a central authority. The people who designed it did so to solve the scaling problems that plague Ethereum, which include poor transaction speeds and high transaction prices.
Blockchain is about to be revolutionized, thanks to Polygon
Polygon’s end goal is to facilitate the creation of a truly decentralized society, complete with international transactions, third-party mediators, and gatekeepers. Its interoperability promotes the scaling and acceptance of blockchain technology by creating a global ecosystem free from technological divides.
How does Polygon work?
The functioning of Polygon can be explained in comparison with Ethereum. Imagine Ethereum as an entity processing a number of really large files. The blockchain takes up the responsibility to reduce some of Ethereum’s workload thus reducing congestion on the network and making it faster.
Polygon as a Layer-2 scaling solution
Polygon is a Layer-2 scaling solution designed to speed up mass adoption to the Ethereum platform. A blockchain with a Layer 2 is constructed by utilizing another blockchain’s underlying foundations. Here, the Ethereum blockchain has the Polygon blockchain layered on top of it.
Thus Polygon inherits certain aspects from Ethereum, including being hyper-secure. But it also adds a few elements that enhance speed and affordability in comparison with Ethereum. One example of this is the fact that it uses a different consensus algorithm.
Does the value of Ethereum increase as a result of Polygon development?
Ultimately, yes. Polygon markets itself as “Ethereum’s Internet of Blockchains,” indicating that it does not view itself as a competitor to Ethereum. If anything, they are dependent on one another. The main drawback is that some of the value that Ethereum would have earned will be lost if users who were planning to use Ethereum start using Polygon, especially because the layer-2 scaling solution is user-friendly.
Still, Polygon enhances Ethereum, which increases the number of individuals using the Ethereum blockchain, which, in turn, increases its value. Yet, considering that this blockchain is built on Ethereum’s blockchain, it is more accurate to say that it relies on Ethereum rather than the other way round.
Polygon and Web3
Polygon network is participating in Web3 since this will improve transaction times, which is something that NFT aficionados are interested in. GameSwift, its Web3 gaming platform, was released to the public in August 2022, enabling users to participate in blockchain-based gaming.
Why Polygon deserves consideration?
The most important reason to keep a close eye on any crypto is your interest in the underlying technology. Yet, the blockchain’s utility extends beyond relieving the strain on the Ethereum network. For instance, you may stake MATIC on the blockchain, which will yield your interest in your investment.
Should you invest in MATIC now?
Polygon price might look attractive, especially after a significant decrease in value. Predicting a crypto’s price movement is a fool’s errand. Essentially, you have to take the call if this is a great investment.
The blockchain has great potential, but the crypto is still in its early stages compared to the other major cryptocurrencies. But you should do your research before taking any investment decision.
Polygon vs. Loopring
They are comparable in certain respects, such as the fact that they both have a feature known as zk rollups (also known as “zero-knowledge rollups”), which are utilized to extract relevant information on a blockchain in a manner that is more expedient than the more conventional proof of stake technique.
But Loopring focuses more on assisting decentralized exchanges, while Polygon allows users to make smart contracts and give loans. Loopring also has a collaboration with an NFT marketplace.
Yet, although the blockchain under discussion has a greater number of use cases, this does not indicate that the technology will prove superior in the long run.
Ethereum is working on scaling solutions that will speed up adoption
Polygon provides Ethereum with the necessary scaling infrastructure to enable it to support the construction of decentralized applications (dApps), the consolidation of multiple transactions into a single one (for the sake of efficiency), and the implementation of proof of stake (PoS) remedies to increase transaction speed and reduce transaction costs.
Polygon’s foray into mobile phones
In July 2022, Polygon partnered with Nothing, a manufacturer of mobile phones, to provide Web3 technology to customers of Nothing’s mobile phones. The blockchain NFTs will fund the manufacturing of the phone, and members will have early access to various products and activities as a perk of their membership.
Conclusion
We have discussed everything you need to know about Polygon’s use cases and its relevance in the blockchain industry. Comparisons apart, remember that Polygon does not intend to compete with Ethereum in any way. In fact, the blockchain helps offload some activities to its own chain when Ethereum network is clogged.
FAQs
What are the key features of Polygon?
Polygon enhances Ethereum with scalability, interoperability, security, and faster transactions. It’s developer-friendly and aims to address Ethereum’s limitations for improved usability.
How does Polygon improve scalability?
Polygon improves scalability by utilizing sidechains, or “Polygon chains,” which process transactions off the Ethereum main chain. This reduces congestion and allows for more transactions to be processed simultaneously, resulting in faster and more efficient network performance.
Can I transfer assets between Ethereum and Polygon?
Yes, you can transfer assets between Ethereum and Polygon using “bridges.” These bridges facilitate the movement of tokens from one network to another, allowing you to enjoy the benefits of both ecosystems while maintaining interoperability.
Is using Polygon secure?
Yes, using Polygon is generally secure. It builds on Ethereum’s security features while adding its own layers of protection. However, like any technology, risks exist. Ensure you follow best practices and use reputable platforms for added security.
