Polygon

What is Polygon (MATIC) Crypto?

Polygon, formerly known as Matic Network, is a Layer 2 scaling solution for the Ethereum Virtual Machine (EVM). It is designed to improve the ecosystem of the Ethereum blockchain in terms of scalability and infrastructure while still inheriting the security, openness, and vibrant developer community offered by Ethereum. At its core, Polygon morphs Ethereum into a complete multi-chain system often referred to as the ''Internet of Blockchains'' similar to other such platforms, such as Polkadot and Cosmos, but with the added benefit of Ethereum.

Core Components and Functionality of Polygon

Polygon SDK: The modular and flexible backbone of Polygon SDK serves as the back channel that can support development relating to optimistic rollup chains, ZK rollup chains, or any form of standalone chains that are being developed on the Polygon.

Plasma Framework: It allows for scalable, autonomous smart contracts according to the proposals of Ethereum co-founder Vitalik Buterin.

Proof-of-Stake (PoS) Chain: The PoS chain architecture is included within Polygon, enabling it to offer as much as 65,000 transactions per second under a single sidechain while having a block confirmation time of below two seconds.

Key Features

Interoperability

Polygon allows unique blockchain networks to be interconnected with one other, fully encapsulating Ethereum's ecosystem and security.

Scalability

It uses the latest roll-up technologies such as ZK rollup and Optimistic rollups to provide scalable infrastructure that optimizes network congestion and transaction costs.

Support for Decentralized Applications (DApps) 

There are over 50 applications on Polygon, among them EasyFi, a DeFi platform, and Aavegotchi, a game based on NFT.

Ecosystem Growth 

Polygon aims to facilitate decentralized finance applications, prediction markets, etc. without compromising on efficient resource consumption and user-friendly experiences.

Polygon (MATIC) Token Details.

There are two tokens associated with Polygon:

Utility of Matic Token

MATIC, the native token of the polygon is one of the most important elements in its ecosystem. It  is ERC-20 that runs on Ethereum, which is designed to be used for: 

• Paying the transaction fees within the Polygon sidechains.

• The currency of settlement within the ecosystem.

• To secure the network through staking.

• The Management of Governance,

POL: Polygon's newer token, which was introduced as part of the transition to Polygon 2.0. POL is used for governance and staking, allowing holders to participate in the network’s decision-making and vote on proposals.

How does Polygon(MATIC) Work?

Polygon Governance:

Polygon governance system allows the community to participate in governance through staking and delegating POL tokens.

Staking POL Tokens

The user must stake POL tokens to a PoS validator in order to vote or delegate voting rights, with the benefit of both securing the network and obtaining voting rights.

Delegating Voting Power

Established under the assumption that users delegate their votes to trusted delegates who will vote for them. Delegation is flexible, enabling users to redelegate or withdraw at any point in time.

Community Participation

The Polygon Community Forum allows users to talk about proposals and engage with devs of the network to impact decentralization and continuous improvement of the ecosystem.

This governance model encourages the community to make that possible in favor of the future of Polygon.

Who are the founders Of Polygon(MATIC) Solution?

Founded in 2017 as the Matic Network, the firm Polygon was co-founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. Originally intended to solve wealth and usability complications of blockchains that were facing cultural challenges, particularly Ethereum, the Matic Network brought in both Layer-2 scaling and external sidechains to optimize blockchain performance.

In May 2020, Matic Network launched its mainnet and core contracts on Ethereum under the control of the Matic Foundation. Throughout the year, the foundation gradually transitioned control to third-party validators so that by February 2021, it was mostly deactivating its nodes.

Originally, it was the month of February 2021 when the platform decided to overhaul itself and became known as Polygon, thus implying an array of evolving solutions for scaling. Alongside this rebranding, it also launched various other technologies, including ZK-rollups such as Hermez (Polygon Hermez) and Mir Protocol (Polygon Zero), and also some privacy projects such as Polygon Miden and Polygon Nightfall, aimed usually at Ethereum's capability and security improvement.

Major Milestones in the Journey of Polygon

June 2022: Official launch of Polygon ID as a service to verify the basic attributes of identity without disclosing personally identifiable information. 

October 2022: Introduction of Polygon Supernets, now known as Polygon Chain Development Kit (CDK), for easier deployment of customized subchains. 

March 2023: Launched the beta version of Polygon zkEVM with a collaborative effort by teams working on the Hermez, Zero, and Miden initiatives.

June 2023: Introduction of the Polygon 2.0 roadmap and Zero-Knowledge technology, the protocol unification upgrade being proposed for the PoS network to be transformed into a zkEVM Validium network.

In October 2023: the POL token was introduced, the biggest innovation in the ecosystem for Polygon. 

January 2024: The launch of the Aggregation Layer (AggLayer) has enabled seamless cross-chain transactions and liquidity within the Polygon ecosystem. February 2024: Type 1 upgrade for zkEVM released enabling it to work with existing EVM chains on Polygon's ZK Layer-2 solutions.

History of Polygon Coin (MATIC)

Polygon (formerly Matic Network) was launched in 2017 to solve Ethereum’s scalability issues. Co-founded by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, its native token MATIC was designed for transaction fees and staking.

Funding and Token Sale

Polygon's Seed Round in Q1 2019 raised $165K at $0.00079 per MATIC, offering a 679x ROI. In April 2019, Polygon’s Main Sale raised $4.94M at $0.00263, with a 204x ROI. The Private Funding Round in Q1 2022 raised $450M, with investors like Andreessen Horowitz, Peak XV Partners, and Tiger Global Management.

Token Distribution

Polygon’s MATIC tokens were unlocked in stages for the ecosystem, foundation, investors, and team, fueling network liquidity and growth.

As of 2024, The all-time low price of Polygon (MATIC) was $0.003012 on May 10, 2019, and its all-time high reached $2.92 on December 27, 2021.

The total supply of MATIC is 10 billion tokens, with a circulating supply of 2.2 billion MATIC.

Polygon Supported Wallets

Polygon supports a variety of wallets, each catering to different user needs:

1. Software Wallets: These are easy-to-use wallets for daily transactions.

• Examples: MetaMask (browser extension/mobile wallet), Trust Wallet (mobile wallet), Polygon Wallet(mobile wallet).

2. Hardware Wallets: Offer enhanced security by storing private keys offline.

• Examples: Ledger Nano X and Trezor.

3. Web3 Wallets: Allow seamless interaction with decentralized apps (dApps).

• Example: WalletConnect, which connects multiple wallets to dApps.

4. Custodial Wallets: Managed by third parties, where the provider holds private keys.

• Examples: Coinbase Wallet and Venly (focused on gaming and NFTs).

These wallets offer varying degrees of security and user experience to cater to both beginners and advanced users.

Where To Buy Polygon(MATIC)/Polygon Swaps?

As of 2024, Polygon (MATIC) is listed on 50+ exchange platforms, with Quikswap and  Binance being the primary exchanges where most of the token trade takes place.

Most of the exchanges are centralized (CEX), with platforms like Binance, Coinbase, Kraken, KuCoin, and Bitfinex

.In addition to these, decentralized exchanges (DEX) such as Uniswap, SushiSwap, and QuickSwap also provide access to MATIC trading. QuickSwap, in particular, is a decentralized exchange built on the Polygon network itself, offering low-cost and fast transactions for Polygon-based tokens, including MATIC.

For the US market, Polygon is available on exchanges like Coinbase, Kraken, Gemini, and Binance US. International users can trade Polygon on platforms such as Binance, OKEx, and KuCoin.

Some common Polygon exchange pairs include MATIC/USDT, MATIC/USD, MATIC/BTC, MATIC/ETH, and MATIC/USDC, with the most common being MATIC/USDT and MATIC/USD for trading and investment purposes.