The Polygon network (previously known as the Matic network) aims to address the Ethereum network’s limitations by offering scaling solutions and building an ecosystem of Ethereum-compatible blockchains.
It features the modular Polygon SDK framework, which allows projects to easily develop their own Ethereum-compatible sidechains while still being in control of components such as consensus, governance, scaling, and virtual machine implementations.
Thanks to Polygon’s newbie-friendly modules and framework, crypto projects can take advantage of Ethereum’s security and familiarity but process transactions at a cheaper and faster rate.
How does Polygon work?
Polygon builds on the Plasma framework proposed by Vitalik Buterin and Joseph Poon in 2017.
The idea is that less critical transactions don’t need to be recorded on the main blockchain. Instead, mundane transactions can take place on parallel sidechains and undergo “checkpoints” before they are submitted to the main chain for finality.
Blockchains on the Polygon network use the Matic proof-of-stake (PoS) sidechain, which has its own set of validators that process transactions before submitting them on the Ethereum base chain for finality.
Polygon only supports the Ethereum base chain for now, but it’s planning on supporting other base chains. This would mean a wider interoperable network and cheaper fees for more dApps in the future.
Team background
The Matic network was launched in India in 2017 by data scientist and software engineer Jaynti Kanani, product manager Anurag Arjun, and software engineer and blockchain developer Sandeep Nailwal.
They added information systems engineer Mihailo Bjelic when the project transitioned from Matic to Polygon.
All four are still involved in the project with Kanani – who was heavily involved in implementing Web3, Plasma, and WalletControl protocol on Ethereum – serving as CEO while Nailwal is COO.
What is the MATIC token?
MATIC is the native token of the Polygon network.
It’s used to pay transaction fees on the MATIC network; participate in the Matic Proof of Stake consensus, and vote on changes to the network.
MATIC is available on major exchanges, especially ones that focus on DeFi.
Token Metrics:
- Holder Addresses: 491K holders on Ethereum, 78K on Polygon, 281K on Binance Smart Chain
- Max Supply: 10B MATIC
- Liquid supply: 9.2B MATIC
- Circulating Supply 8.73B MATIC
- Inflation Rate: 5.42%
Notable Projects on Polygon:
- AAVE: Lending Protocol
- Quickswap: Automated Market Maker
- Curve: decentralized exchange liquidity pool focused on stable swaps
- Sushiswap: Automated Market Maker