What Is Polygon (MATIC)? How It Works & Where To Buy It?

Polygon is a layer-2 scaling solution that aims to transform Ethereum into the internet of blockchains.

Polygon positions itself as a tailored platform where developers can create customized sovereign blockchains and launch blockchain networks.

MATIC is the network’s native cryptocurrency and is currently the 17th largest cryptocurrency by market capitalization.

How Polygon (MATIC) Works

In simple terms, Polygon is the framework used for building interconnected blockchain networks. Principally, it is the foundational framework that blockchain networks utilize.

Its architecture can best be understood as a multiple-layered system that comprises an Ethereum layer, security layer, Polygon networks layer, and execution layer.

However, it is quite different from its predecessor, the MATIC network, which implemented an off-chain approach to processing transactions before fulfillment on Ethereum main chain. The entire principle of Polygon is for it to be a dedicated platform that can seamlessly facilitate the functionality and launch of interoperable blockchains.

The role of the Ethereum layer is to process and execute basic smart contract functionality such as finalizing transactions, staking, and key communication between Polygon chains and Ethereum.

Additionally, the security layer assists by optimizing the process of validation and making more validation accessible, thereby increasing the security. It runs parallel to the Ethereum layer.

Next is the Polygon networks layer, which comprises the Polygon ecosystem. These blockchain networks ensure that they reach local consensus and function optimally.

Lastly, the execution layer is distinguished as the Polygon Ethereum virtual machine that’s role is to process executing smart contracts.

What separates the Polygon network apart is the ability for interoperability between Polygon chains and Ethereum chains. Essentially, this allows more accessibility to developers, a more fluid system of networks, and several DApps like decentralized finance protocols to communicate securely and efficiently.

 

What Is Polygon (MATIC) Used For?

If you’ve conquered the question of “how does Polygon work?”. You’re likely wondering what Polygon and MATIC, its native utility token, are used for.

Polygon network positions itself as a simple scaling solution that optimizes the throughput of the Ethereum network, among others. Then there is also the Polygon software development kit (SDK) implemented by developers who can then curate a seamless and secure launching and creation of blockchain networks.

Principally, Polygon aims to be an interconnectivity and interoperability solution for current stand-alone blockchains. Upon achieving blockchain interoperability, it will establish true decentralization and create heightened accessibility among blockchain networks, benefitting DeFi applications in the Ethereum ecosystem and users equally.

It will also ensure transaction fees will be lowered, which will make using blockchain networks much more appealing.

The token powering the Polygon network is the MATIC token. Its role is for governance and security of the network, and it uses Polygon network fees.

Where To Buy Polygon (MATIC) Tokens

Polygon (MATIC) is the 17th largest cryptocurrency globally by market cap.

MATIC tokens can be purchased on several centralized crypto exchanges. But, before you’re able to purchase MATIC, you’ll need to deposit fiat money onto an exchange, and sequentially MATIC tokens will be credited to your MATIC digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store MATIC.

Five of the most popular crypto exchanges are:

1. Binance
2. Coinbase
3. KuCoin
4. HTX
5. Crypto.com

 

All of the above exchanges allow users to buy, sell, transfer, and store MATIC in a digital wallet on the exchange. You can use your debit or credit card to purchase MATIC on centralized exchanges.

If you intend on transferring your MATIC tokens to a wallet off of the exchange – you can choose to send them to a wallet such as Metamask or other Polygon-compatible wallets.

How long has Polygon (MATIC) existed?

Polygon network (formerly MATIC network) was launched in 2017 – its founders are India’s first billionaires.

MATIC coin was only launched in 2019, two years after the Polygon network went live. It has grown quickly and increased more than 300x since its launch in 2019.

What’s controversial about Polygon (MATIC)?

It’s important to consider controversies surrounding crypto projects. It’s very common for projects to not be as transparent as they promise, especially given that the legal framework surrounding cryptocurrencies is still being finalized.

Let’s take a look at the top two controversies surrounding Polygon (MATIC)

• Gas Limits Have Crippled The Network – Much like Ethereum, for a brief period, there was a lot of concern from members of the Polygon community. Transactions were slow, and the network was congested, like Ethereum’s network. This could be mainly attributed to the fact that the adjustment and scaling of gas limits made the network unappealing to use. Since then, advancements have been made, and transactional speeds and costs have improved significantly.
• Network Stood The Risk Of Losing $24 Billion Worth Of MATIC – There was a network vulnerability that has since been patched. The vulnerability was brought to light by “white hat hackers” and could have cost the Polygon network more than $24 billion in MATIC tokens.

 

How many Polygon (MATIC) tokens are there?

At the time of writing, MATIC has a circulating supply of 7.76 billion tokens (78% of the total supply).

The total supply of MATIC is 10 billion.

Can MATIC coins be mined?

MATIC can’t be mined. It is not a proof-of-work coin and therefore can’t be mined. However, individuals can generate revenue by participating in DeFi apps that allow them to stake MATIC and participate in lending protocols. There are several DApps in the Polygon ecosystem that would enable users to generate a generous yield on their MATIC tokens.

Some centralized exchanges also offer minimum APY (Annual Percentage Yield) if individuals stake their MATIC tokens for a certain duration.

What is the market cap of Polygon (MATIC)?

The market cap of Polygon (MATIC) is:

Polygon (MATIC) market cap = total amount of coins in circulation x current market price of MATIC

Polygon (MATIC) Market Cap = 7,760,000,000 x $1.48 = $11.52 billion (17th largest market cap)

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Polygon (MATIC)

Polygon is competing with the likes of Avalanche, and Solana.

As it continues to grow its ecosystem, it competes with other blockchains that have already established much bigger ecosystems.

Although Polygon is a layer-2 scaling solution, Solana, a layer 1, already has nominal transaction fees and can process up to 65,000 transactions per second. The Solana ecosystem has a TVL of $7.47 billion.

MATIC’s competitors are formidable blockchains that have established exceptional blockchain networks and interoperability and prove to have proved to have provided a scalability solution. The Ethereum network aims to become more use-worthy, and Polygon’s infrastructure aims to be Ethereum’s internet of blockchains.

What are the future plans for Polygon Network and MATIC

The Polygon team has become an even more significant player in the crypto space. It recently announced that it would be hiring four more teams to work on ZK rollup chains – the aim is to pioneer the creation of highly-scalable Ethereum virtual machine ZK rollups.

The team will prioritize DApp integrations and look to continue rapid growth in the ecosystem. This will likely propel the project in the best direction and make it a serious contender in the crypto space.

Pros and Cons of Polygon (MATIC), Polygon Ecosystem & its decentralized apps

Pros:

• Compatible With Ethereum Virtual Machine – It’s a familiar and easy-to-use option for developers used to building Dapps on Ethereum.
• Polygon Ecosystem Is Growing Rapidly – The ecosystem has the 8th largest TVL (total value-locked) at $4.45 billion.
• MATIC Token Has Added Utility – The recent developments in the Polygon network have created an additional utility for the MATIC token. It is still to be announced whether the MATIC token will continue to grow in utility with the proposed Poylgon upgrades.
• Focused On NFTs and GameFi – Polygon has focused predominantly on the fast-growing NFT and GameFi sectors. The Polygon ecosystem looks to flourish in these innovative sectors, and the teams’ vision will likely propel them to become an even more influential project in the crypto space.

 

Cons:

• Ethereum 2.0 Might Diminish The Need For Polygon – Polygon has primed itself as the scaling solution for Ethereum. Blockchain interoperability between Polygon and Ethereum has been significantly successful, but the opening for Polygon has been available due to the technical infrastructure issues of the Ethereum blockchain.The proposed Ethereum 2.0 upgrade will finalize the shift to Proof-of-Stake, sequentially eliminating congestion and exorbitant fees. Once this upgrade takes place, the need for Polygon will likely fall away. If Polygon can continue building, innovating, and ensuring it has a significant real-world utility that will enhance current blockchain technology, it is likely to prosper.

Polygon User Reviews

Review Summary

Recent Reviews

Submit a Review