What Is Polygon Crypto?
In this article, we take a closer look at Polygon crypto. Let’s find out how the similarity with Ethereum helps the crypto create a powerful community of crypto owners.
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The bear market has been difficult for most of the projects building on blockchain technology. The FTX collapse has brought incredibly strong projects like Solana to their knees, leaving a shadow of TVL on their networks.
However, one project has stood up as unphased by this bear market — Polygon (MATIC). While the price action of its token has correlated with the rest of the altcoins, it doesn’t show. The team behind the project has pushed incredible innovations considering this difficult period in the industry.
This has pushed many investors to reconsider their investments and convert blue chip tokens like BNB to MATIC. Should you take advantage of this opportunity as well? In this article, we provide you with some fundamentals on MATIC and the reasons behind its strength as a long-term investment in crypto.
What Are Polygon and MATIC?
Polygon is a scaling solution for Ethereum. It allows users to bridge over their ETH assets and applications on a much more scalable blockchain. It uses MATIC as gas and provides EVM compatibility at much lower gas fees. It also offers a higher transaction count per second.
Ethereum’s main shortcoming is its scalability. While this has been somewhat alleviated with the recent transition to PoS, gas fees remain extremely high. This prevents the mass adoption of blockchain technology, and by proxy, of everything connected to it. This includes DeFi, NFTs, play-to-earn games, and metaverses.
Polygon provides a solution to this by providing a compatible infrastructure, where developers can launch their dApps and benefit from low transaction fees.
The MATIC cryptocurrency is a proof of stake token that is used to stake on the network and secure it. It offers governance rights to its holders and has a maximum supply of 10,000,000,000 tokens, of which 8,734,317,475 MATIC are already in circulation.
How Does Polygon Work?
Polygon is a PoS sidechain that allows users to carry out transactions from the main Ethereum chain. As such, it alleviates the computing strain on the underlying Ethereum network. This version of Polygon PoS uses Plasma technology for bridging and rollups. This provides high security and throughput.
However, in the long run, Plasma can become cumbersome, as the chain grows. For this reason, the team behind Polygon is working on multiple additional solutions. They will provide even more scalability and usability for the sidechains.
This includes the highly anticipated EVM Zk-Rollups. They will only store the proof of each transaction instead of the entire ledger. This ensures high scalability and efficiency to make the Polygon network future-proof.
And finally, Polygon is working on its iteration of the Supernets. This network of interconnected blockchains, sidechains, and app chains will create an EVM-compatible internet of blockchains.
How to Use Polygon?
Over the years, Polygon has become inherently easier to use. With its MATIC token present on most exchanges, you can easily purchase gas to use on the network. In addition, the Polygon network has a multitude of useful and well-known dApps for DeFi like Quickswap and SushiSwap.
Since it’s extremely easy to port code from Ethereum to Polygon, many successful applications have migrated to the sidechain. This includes lending protocols like Aave, NFT marketplaces like OpenSea, and metaverse games like The Sandbox.
When comparing LRC to MATIC, Polygon has the upper hand in terms of usability. Recently, the top marketplace from Solana, MagicEden, has migrated to Polygon. In addition, there are multiple gaming hubs on the chain. AAA publisher Square Enix just announced a high-profile NFT game on Polygon.
Is MATIC a Good Investment?
Polygon is a fantastic project that is “bringing the world to Ethereum,” and hence, making Web3 accessible to everyone. With its incredible partnerships (Coca-Cola, Reddit, Starbucks, etc.), it shows that real-world companies are willing to jump on the blockchain bandwagon if the platform is accessible.
Moreover, with its upcoming Zk-rollup scaling solutions and Supernets internet of blockchains, Polygon is ensuring its spot in the top 10 cryptocurrencies. Not only does the team ideate on innovation, but they have been consistently delivering on their promises.
So, if you are looking for a project that is certain to host a large portion of the upcoming Web3 revolution, MATIC is the token to buy.