Everything you need to know about Polygon (MATIC)

Everything you need to know about Polygon (MATIC)

Ethereum News
April 26, 2022 by Diana Ambolis
271
Definition Polygon is a “layer two” or “sidechain” scaling solution that works in conjunction with the Ethereum blockchain to allow for quick transactions at low prices. The native coin of the network, MATIC, is used for things like fees and staking. MATIC may be bought or traded on cryptocurrency exchanges such as Coinbase. The Ethereum
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Definition

Polygon is a “layer two” or “sidechain” scaling solution that works in conjunction with the Ethereum blockchain to allow for quick transactions at low prices. The native coin of the network, MATIC, is used for things like fees and staking. MATIC may be bought or traded on cryptocurrency exchanges such as Coinbase.
The Ethereum blockchain is home to a varied range of economic activity, from NFT marketplaces and games to the developing DeFi ecosystem. Ethereum is ideally suited for this activity since it is compatible with smart contracts. Smart contracts can be used to create a variety of different applications.

However, as these applications become more popular, more transactions are uploaded to the Ethereum blockchain, raising transaction prices (also known as “gas”) to make small or frequent transfers no longer economically viable.
Polygon is a “Layer 2” scaling solution (also known as a “sidechain”) that was created to provide users with faster transactions and lower prices. It works as a closed parallel blockchain that operates concurrently with Ethereum’s leading network. You must first “bridge” a portion of your crypto to Polygon to use it. You may use a variety of popular crypto apps that were previously exclusively available on the Ethereum main blockchain.

What is MATIC, exactly?

MATIC is Polygon’s own cryptocurrency. It is used to pay fees and staking and governance on the Polygon network (which means that MATIC holders get to vote on changes to Polygon). MATIC can be bought and sold on Coinbase and other exchanges as well.

Polygon was given MATIC at an earlier stage in its development. After it made its debut as Matic Network in October 2017, the developers rebranded as Polygon in early 2021.

Also, read – Three common misunderstandings concerning the Ethereum Merge

What exactly is Polygon, and how does it function?

Polygon is similar to a metro express train in that it travels the same route as a regular train but with fewer stops and so travels faster. (In this scenario, the main Ethereum blockchain symbolizes the local railway.) Polygon uses a combination of technologies to generate this fast parallel blockchain and connect it to the main Ethereum blockchain.

Polygon creates new MATIC and protects the network via a proof-of-stake consensus process.

People validate new transactions and, add them to the blockchain, do the heavy labor. They may receive a portion of the money and a new MATIC in exchange. Taking on the position of validator necessitates the operation of a full-time node (or computer) as well as the establishment of your own MATIC. If you make a mistake or act intentionally, you may lose some of your staked MATIC.

Delegators stake their MATIC with a trusted validator. This is a far less dangerous variant of staking. However, doing your homework is still vital because if the validator you choose is malicious or makes mistakes, you may lose some or all of your staked MATIC.

How do you intend to use the Polygon network?

Many of the same tasks as on the leading Ethereum network are possible on the Polygon network, but with fees that are typically a fraction of a cent. QuikSwap and SushiSwap are decentralized exchanges worth checking out, as are yield-generating loan and savings protocols like Aave, NFT markets like OpenSea, and even “no-loss reward games” like Pool together.

To test the Polygon network, send some money to a compatible crypto wallet, such as Coinbase Wallet. You’ll need to have some MATIC to make trades, but even a dollar’s worth will be sufficient because the fees are so low. Then you can “bridge” some of your cryptos to the Polygon network, with stablecoins being a popular choice.
Because of its low fees and near-instant transactions, the Polygon network is an excellent place to acquire some hands-on experience with DeFi protocols. (Be aware that DeFi is incredibly volatile, so start small and only invest what you can afford to lose if you’re a beginner.)