Key Takeaways
Polygon (POL) is a Layer 2 solution designed to make the Ethereum network faster, cheaper, and easier to use.
The POL token, previously called MATIC, is used for network governance, staking, and paying transaction fees.
Polygon helps developers create blockchain apps by speeding up transactions and lowering costs compared to Ethereum’s mainnet.
It started as Matic Network in 2017 and later rebranded to Polygon, focusing more on Web3 applications.
Introduction
Polygon (POL) is a network that works alongside Ethereum to make transactions quicker and cheaper. It was first known as the Matic Network when it was created in 2017 by four founders: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. Its goal was to help Ethereum handle more transactions without slowing down or becoming too expensive.
After a successful token sale in 2020, the team decided to change the project’s name to Polygon. This shift came with a new focus on Web3, which means building a more decentralized and user-controlled internet.
Polygon also grew as an organization. It formed a development team called Polygon Labs and created the Polygon Foundation to support ongoing research and community education. The network introduced new leaders with experience in both tech and blockchain.
One big upgrade happened in late 2023. This update started switching from the old MATIC tokens to the new POL tokens, a process that finished in September 2024. This change helped Polygon expand its network and improve how easily different blockchains can connect to it.
How Polygon Works
Scalability and speed
Ethereum’s mainnet often experiences congestion, leading to high fees and slower transaction times. Polygon tackles these issues by operating as a Layer 2 solution that processes transactions off-chain before finalizing them on Ethereum. This reduces network load and significantly increases throughput, with Polygon handling more than 32 transactions per second and maintaining transaction fees typically under $0.01.
Interoperability
Polygon offers a suite of interoperable scaling technologies, like sidechains and ZK-rollups. These enable seamless communication between Ethereum and other blockchains. In other words, Polygon supports deploying existing blockchain networks and creating custom blockchains compatible with Ethereum standards.
Security
Polygon maintains strong security by leveraging Ethereum’s security model combined with its own Proof of Stake (PoS) consensus mechanism. Validators stake POL tokens, ensuring alignment of incentives and protection against malicious activity.
The POL Token
POL is the improved successor to MATIC. The main difference between POL and MATIC is that POL offers more utility and functionality for the Polygon ecosystem, while MATIC's use was mostly confined to the original PoS chain.
The transition from MATIC to POL is both a technical and economic change, allowing POL to support a larger, multi-chain network. The transition also introduced important features for multi-chain staking and governance, and the ability to earn fees from a wider range of activities within the Polygon network.
Pros and Cons of Polygon
Pros
Fast transaction speeds: Polygon processes transactions quickly, which helps apps run smoothly.
Low costs: Fees are much cheaper than on Ethereum’s main chain, saving money for users and developers.
Interoperability: It connects seamlessly with Ethereum and other blockchains.
Supports growth: Polygon can scale up by allowing many Layer 2 chains and custom blockchains to operate. There are also ecosystem support programs that help projects get started and grow.
Cons
Depends on Ethereum: Since Polygon relies on Ethereum’s security, any problems with Ethereum can affect Polygon too.
Limited Use Cases for POL: Primarily a network utility token with few real-world use cases and applications.
Polygon’s Role in Web3 Growth
Polygon actively promotes Web3 innovation through initiatives like Polygon Village 2, launched in November 2023. This program offers grants, mentorship, and accelerator support for startups building decentralized applications (DApps) on Polygon’s platform.
Web3 represents an evolution of the internet’s architecture, shifting control of data, value, and digital assets away from central authorities to individual users. Polygon aims to provide the scalable infrastructure necessary to support this transition by enabling a “Value Layer” where users own and control their creations and information.
Closing Thoughts
Polygon (POL) started as a framework for creating blockchain scaling solutions that are compatible with Ethereum, but has later transitioned to a wider ecosystem that connects with multiple chains and supports more complex blockchain solutions. The Polygon Network has garnered wide adoption thanks to its fast, low-cost transactions and EVM compatibility. Even though Polygon depends on Ethereum to stay secure, its fast transactions, low fees, and focus on Web3 make it a valuable platform for blockchain developers and users alike.
Further Reading
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