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About Polygon
- Polygon (formerly Matic Network) is a Layer 2 scaling solution for Ethereum.
- It uses a modular, flexible framework called Polygon SDK to support building multiple types of applications.
- Polygon transforms Ethereum into a full-fledged multi-chain system, akin to Polkadot, Cosmos, and Avalanche.
- The $MATIC token plays an increasingly important role in securing the system and enabling governance.
Key Features
- Up to 65,000 transactions per second on a single side chain.
- Block confirmation time of less than two seconds.
- Creation of globally available decentralized financial
About Polygon: Empowering a Scalable Web3 Future
Introducing Polygon (MATIC): A Comprehensive Overview
Polygon (formerly Matic Network) pioneers a meticulously crafted, user-friendly platform for Ethereum scaling and infrastructure development. At its core lies the Polygon SDK, a modular and adaptable framework that empowers the creation of diverse application types.
Delve deeper into the intricacies of this project by exploring our comprehensive analysis of Polygon Matic.
By leveraging Polygon, developers can create a diverse range of infrastructure, including optimistic rollup chains, ZK rollup chains, standalone chains, and any other bespoke solutions that meet their specific requirements.
Polygon effectively metamorphoses Ethereum into a comprehensive, multi-chain ecosystem, akin to an “Internet of Blockchains.” This paradigmatic shift is reminiscent of other prominent multi-chain systems, such as Polkadot, Cosmos, and Avalanche, while leveraging the unparalleled security, thriving ecosystem, and openness that Ethereum has to offer.
The $MATIC token will persist and assume an increasingly pivotal function, underpinning the system’s security and facilitating governance.
Polygon (formerly Matic Network), a Layer 2 scaling solution endorsed by esteemed industry giants Binance and Coinbase, strives to catalyze widespread cryptocurrency adoption by alleviating the scalability constraints that plague numerous blockchain ecosystems.
Polygon converges the Plasma Framework with a proof-of-stake blockchain architecture, thereby facilitating the seamless execution of scalable and autonomous smart contracts, as envisioned by Vitalik Buterin, the co-founder of Ethereum, in his pioneering Plasma framework.
For the existing ecosystem built on the Plasma-POS chain, there will be no disruptions. Meanwhile, with Polygon, innovative features are being developed around the existing, battle-tested technology to accommodate the diverse requirements of the developer ecosystem. Furthermore, Polygon will continue to refine its core technology, enabling it to scale and support a broader ecosystem.
Polygon proudly touts an impressive throughput of up to 65,000 transactions per second on a single side chain, complemented by a remarkably swift block confirmation time of under two seconds. Furthermore, the framework facilitates the development of globally accessible decentralized financial applications, all anchored to a single, robust foundational blockchain.
The Plasma framework empowers Polygon with the capability to accommodate an unlimited number of decentralized applications on its infrastructure, circumventing the typical drawbacks inherent to proof-of-work blockchains. Notably, Polygon has already drawn over 50 DApps to its PoS-secured Ethereum sidechain.
Polygon’s native cryptocurrency, MATIC, is an ERC-20 token that operates on the Ethereum blockchain. Within the Polygon ecosystem, these tokens facilitate payment services and serve as a settlement currency among users. Furthermore, transaction fees on Polygon’s sidechains are denominated in MATIC tokens.
The Visionary Founders Behind Polygon
Polygon, formerly known as Matic Network, was inaugurated in October 2017. The platform was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, a triumvirate comprising two seasoned blockchain developers and a seasoned business consultant.
Prior to migrating to its own network in 2019, the Polygon team played a pivotal role in the Ethereum ecosystem, where they made significant contributions, including the implementation of the Plasma MVP, the WalletConnect protocol, and the widely utilized Dagger event notification engine on Ethereum.
The team boasted the esteemed presence of Jaynti Kanani, co-founder of Polygon. As a multifaceted full-stack developer and seasoned blockchain engineer, Jaynti presently helms the reins as the CEO of Polygon.
Jaynti played a pivotal role in the implementation of Web3, Plasma, and the WalletConnect protocol on the Ethereum network. Prior to his foray into blockchain, Jaynti held the position of data scientist at Housing.com.
Noted blockchain programmer and entrepreneur Sandeep Nailwal, Co-founder and Chief Operations Officer of Polygon, boasts an impressive professional pedigree. Prior to co-founding Polygon (formerly Matic), Nailwal held esteemed positions as CEO of Scopeweaver and Chief Technical Officer of Welspun Group.
Anurag Arjun, the sole non-technical co-founder of Polygon, boasts an impressive professional background, having held product management positions at esteemed organizations such as IRIS Business, SNL Financial, Dexter Consultancy, and Cognizant Technologies.
Polygon’s Distinctive Edge: A Revolutionary Approach
Polygon is self-described as a Layer 2 scaling solution, which implies that the project has no imminent plans to upgrade its underlying blockchain infrastructure. Instead, the project’s primary focus lies in mitigating the complexity of scalability and facilitating instantaneous blockchain transactions.
Polygon leverages a tailored implementation of the Plasma framework, which is anchored to the Ethereum main-chain via proof-of-stake checkpoints. This innovative technology empowers each sidechain on Polygon to process an impressive 65,536 transactions per block.
From a commercial standpoint, the sidechains of Polygon are architecturally designed to seamlessly support a diverse array of decentralized finance (DeFi) protocols native to the Ethereum ecosystem.
Currently, Polygon’s scope is limited to the Ethereum basechain, but the network plans to expand its support to encompass additional basechains, driven by community recommendations and consensus. This strategic move would ultimately transform Polygon into a versatile, interoperable, and decentralized Layer 2 blockchain platform.
What Is the Circulating Supply of Polygon (MATIC) Tokens?
MATIC tokens are issued on a monthly basis. Currently, the circulating supply of MATIC tokens stands at 4,877,830,774, with a maximum supply capped at 10,000,000,000 tokens.
During its inaugural private sale in 2017, a mere 3.8% of MATIC’s maximum supply was allocated. This was followed by a highly successful launchpad sale in April 2019, where an additional 19% of the total supply was sold, with each token priced at $0.00263, generating a total of $5 million.
The residual MATIC tokens are allocated as follows:
- The team’s allocation comprises 16% of the total token supply.
- Advisors are allotted 4% of the total token supply.
- Network operations are supported by 12% of the total token supply.
- The foundation retains 21.86% of the total token supply.
- The ecosystem is fueled by 23.33% of the total token supply.
In accordance with the predetermined release schedule, the entirety of tokens is slated for distribution by December 2022.
The Security Mechanisms of Polygon: A Robust Framework
Within the Polygon ecosystem, staking assumes a pivotal role as a Layer 2 solution, leveraging a network of proof-of-stake validators to ensure asset security. To participate in the network’s PoS consensus mechanism, validators must stake their MATIC tokens as collateral, thereby becoming an integral part of the network, and in return, receive MATIC tokens as a reward.
Network participants who opt out of becoming validators can delegate their MATIC tokens to another validator, thereby still participating in the staking process and earning corresponding rewards.
Beyond the proof-of-stake checkpointing, Polygon leverages block producers at the block producer layer to attain a heightened level of decentralization. These block producers confer finality to the main chains through the implementation of checkpoints and fraud-proof mechanisms, thereby ensuring the integrity of the network.
Where to Acquire Polygon (MATIC): A Comprehensive Guide
As a pivotal contributor to the growth of the Ethereum ecosystem, MATIC has garnered significant popularity among online exchanges specializing in decentralized finance (DeFi). The leading exchanges where MATIC can be bought, sold, and traded currently include:
- The esteemed Binance exchange
- Coinbase Pro, a premier trading platform
- Huobi Global, a stalwart in the digital asset realm
- KuCoin, a prominent cryptocurrency exchange
To obtain the current Polygon price in your preferred fiat currency, you can utilize CoinMarketCap’s convenient converter tool, readily available on the Polygon price page. Alternatively, you can access the dedicated exchange rate converter page. Notable MATIC price pairs include: MATIC/USD, MATIC/GBP, MATIC/AUD, MATIC/EUR, and MATIC/JPY.
For newcomers, we invite you to explore our concise guide to buying cryptocurrency, in-depth project analyses, and a wealth of educational resources available on CoinMarketCap Alexandria.
The Polygon (MATIC) Network: Embracing the London Hard Fork and EIP-1559 Upgrade
Polygon has announced that the highly anticipated London Hard Fork and Ethereum Improvement Proposal (EIP) 1559 upgrade will be deployed on the mainnet on January 18, 2022. This significant upgrade will revolutionize the fee mechanism on the Ethereum network, replacing the first-price auction as the primary fee calculation method with a base fee that is burned, rather than being allocated to miners. While it does not directly reduce transaction fees, it introduces a more stable and predictable cost structure, enabling users to better estimate expenses and minimize overpayment.
Notably, the burning of MATIC tokens as base fees, coupled with the fixed supply of 10 billion tokens, will exert a deflationary influence on the digital asset. According to Polygon’s core team, an estimated 0.27% of the token’s total supply, approximately 27 million tokens, will be burned annually. This deflationary pressure is likely to disproportionately benefit validators and delegators, as rewards for processing transactions on Polygon are denominated in MATIC. Moreover, the base fee will automatically increase once the block is filled, thereby reducing spam transactions and alleviating network congestion. Meanwhile, Ethereum mainnet’s London Hard Fork went live on August 5, 2021.
Embracing Sustainability: Polygon Network’s Commitment to Carbon Neutrality
Polygon is at the forefront of the blockchain industry’s pursuit of carbon neutrality, a key pillar of its Green Manifesto. This ambitious initiative is dedicated to fostering sustainable development within the blockchain ecosystem. To this end, Polygon has pledged $20 million to support community-driven initiatives that leverage Web3 technology to build a more environmentally conscious future for all. A key aspect of this endeavour involves developing innovative solutions for on-chain carbon credit retirement.
Through a strategic partnership with KlimaDAO, Polygon has acquired $400,000 worth of carbon credits, equivalent to offsetting approximately 90,000 tonnes of CO2 emissions. These tokens have been successfully retired via KlimaDAO’s offset aggregator tool, utilizing BCT and MCO2 carbon credits, which were created from offsets certified under the esteemed Verified Carbon Standard.
KlimaDAO is a decentralized collective of visionaries, comprising environmentalists, entrepreneurs, and developers, united in their quest to revolutionize the carbon market by harnessing the power of on-chain technology.
Furthermore, KlimaDAO and Offsetra conducted an in-depth analysis of Polygon’s network energy footprint to identify key emission hotspots and devise a comprehensive mitigation strategy. This encompassed a thorough examination of emissions generated by staking node hardware, the energy consumption patterns of staking operations, and other relevant factors.
Embarking on a journey towards carbon neutrality marks a pivotal milestone in Polygon’s pursuit of sustainability. Although the network’s proof-of-stake consensus mechanism is significantly more energy-efficient than traditional proof-of-work, it still has an environmental footprint. This impact is twofold, encompassing both the energy consumption of Polygon’s native activities and the interactions between its native smart contracts and the Ethereum blockchain.
Polygon and KlimaDAO have also relinquished carbon credits from a diverse array of network-native projects, including the Bull Run Forest Conservation Project, the Ghani Solar Power Project, Moss.Earth, and the wind power project situated in Jaibhim, India.