Polygon, formerly known as Matic network, is a layer-2 scaling solution founded in 2017 with Jaynti Kanani as the founder. Polygon was created to fix several limitations in the Ethereum blockchain, such as slow transaction speed, low throughput, and high gas fees. It was originally designed as a scaling solution, but it rapidly evolved into a multi-purpose ecosystem. Matic Network strives to solve the scalability and usability issues.
Source: Polygon Lightpaper
What is Layer-2 Solution?
A layer 2 solution is a blockchain that runs parallel to a mainnet — in Polygon’s case, Ethereum — but processes transactions outside of the mainnet, resulting in an increased throughput (transaction speed) and lower gas fees.
As we know, Ethereum is the go-to ecosystem for most software developers looking to launch their dApps (decentralized applications) due to its vast and secure infrastructure and innovative tooling.
However, the high demand for dApps and the subsequent supply clogged the network, and its throughput has significantly downgraded — it’s not uncommon to see gas fees rising up, which can be pretty expensive, leaving the Ethereum blockchain only for the ‘big players.’
This is why Layer 2 solutions have become essential to the DeFi ecosystem, as they enhance Ethereum’s scalability and throughput while still benefiting from its security properties.
The MATIC Token
MATIC, its native token debuted on the Binance Launchpad in 2019. MATIC powers the entire Polygon ecosystem. This token can be used for paying transaction/ gas fees, for staking and a governance token. The maximum supply is 10 billion.
The MATIC token supply distribution is as follows:
- Advisors: 4%
- Private Sale: 4%
- Network Operations: 12%
- Team: 16%
- Launchpad Sale: 19%
- Ecosystem: 23%
- Foundation: 22%
Polygon framework supports two major types of Ethereum-compatible blockchain networks:
- Stand-alone chains
These networks are fully in charge of their own security.
- Secured chains
Blockchain networks that use “security as a service” where the service can be provided either by Ethereum directly or by a pool of professional validators.
Proof of Stake Consensus
The platform leverages the Proof of Stake consensus, which relies on a set of node validators to verify and validate transaction blocks on the network.
The PoS ecosystem of Polygon works by rewarding users with MATIC, the protocol’s native token. To earn MATIC, you can choose one of the following options:
Become a validator and commit to the network by running a full node to validate transactions on the blockchain. As a node validator, you receive a cut of fees and newly created MATIC. However, if you act maliciously, make a mistake, or even if your internet connection is slow, your MATIC rewards will be slashed as punishment.
Become a delegator, which is a type of public node. As a delegator, you receive other people’s MATIC and use it to help the network conduct PoS validation. The larger the delegated stake, the higher the delegator’s voting power. This is easier than being a node validator, but it also comes with its challenges.
Utility: What Can You Do on Polygon?
Polygon is not only a scaling solution, but it is also becoming a broader and more complex ecosystem where users and developers alike have a wide set of use cases. They can launch Ethereum-compatible blockchains, use Ethereum-based decentralized applications (dApps), mint NFT, become node validators, delegators, stake MATIC, and do a lot more.
There are numerous successful projects that run on Polygon, such as yield generating protocols like Aave or Curve Finance, decentralized exchanges such as SushiSwap, and the most popular decentralized NFT (Non-Fungible Token) marketplace, OpenSea.
How to Buy MATIC?
To get some MATIC, you can simply buy them directly on NOBI app. You can also check MATIC’s real-time price here. Not only buy-sell crypto assets, you can also grow your favorite crypto assets on NOBI, including MATIC. You could hold your coins while earning attractive rewards on NOBI Earn. What’s more, it’s an easy way to earn by simply holding crypto assets. Check out NOBI Earn and start earning rewards today!