A wide variety of economic activity, including NFT marketplaces, gaming, and the expanding DeFi ecosystem, can be found on the Ethereum blockchain.
Due to its compatibility with smart contracts, which can be used to create a wide variety of applications, Ethereum is ideally suited for this activity.
However, as these applications gain more popularity, more transactions are added to the Ethereum blockchain. As a result, transaction fees can occasionally increase to the point where making small or frequent investments can become unprofitable.
Here comes Polygon, a ‘Layer 2’ scaling solution that has been developed to offer users cheaper and faster transactions. It functions as a quick secondary blockchain that runs simultaneously with the main Ethereum blockchain.
To use it, you must bridge some of your cryptocurrency to Polygon. From there, you can use a variety of well-known crypto apps that were previously restricted to the main Ethereum blockchain.
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What Is Polygon?
Polygon, With the symbol MATIC, is both a cryptocurrency and a platform for connecting and growing blockchain networks. In 2017, Matic Network or Polygon was launched by Ethereum’s internet of blockchains.
The Polygon platform links Ethereum-based projects and runs on the Ethereum blockchain. While still providing security, compatibility, and structural advantages of the Ethereum blockchain, using the Polygon platform can boost the flexibility, scalability, and sovereignty of a blockchain enterprise.
Since MATIC is an ERC-20 token, it can be used with other cryptocurrencies based on Ethereum. The Polygon network is managed and protected and network transaction fees are paid using MATIC.
How Does It Work?
Polygon uses a proof-of-stake consensus technique to generate new MATIC and protect the network, which implies that one way you can make money on MATIC you own is by staking.
Proof of stake depends on the users locking up their tokens and staking them in order to be eligible for staking rewards. However, there is risk involved, and according to experts, you could lose some or all of your investments.
Just 1 MATIC can be staked to begin earning interest. However, the majority of people will assign their staking to a validator rather than attempting to gather enough MATIC to operate the validator themselves. Validators may take a tiny commission, usually between 1% and 10% of your staking earnings.
How To Buy Polygon?
Like many other well-known cryptocurrencies, MATIC may be purchased on Cryptocurrency exchanges like Coinbase or Gemini.
You must register and authenticate your identity if you don’t already have an account.
MATIC can also be bought on cryptocurrency exchanges like Coinbase, Kraken, and Crypto.com with dollars or other fiat currencies.
Additionally, decentralized exchanges like Uniswap allow you to purchase MATIC. You might be able to buy MATIC directly through a payment processor known as a fiat on-ramp, depending on the cryptocurrency wallet you choose. Alternatively, you might need to buy a different token and then pay a charge to exchange it for MATIC.
Once you’ve linked an approved wallet, you can utilize the official Polygon Bridge to deposit and withdraw MATIC if you want to get a coin from the Polygon Network. Some wallets also let you get MATIC straight from the Polygon network, like the Crypto.com DeFi Wallet software.
Who Is Behind Polygon?
Polygon, originally known as Matic Network, was founded in 2017 and is a pretty well-known cryptocurrency that appears in the top 15 by market capitalization.
Jayanti Kanani, Sandeep Nailwal, and Anurag Arjun are the founders of Polygon. Later, Mihialio Bjelic joined them as a co-founder. The major investors of Polygon are Mark Cuban and Balaji Srinivasan.
Over 7,000 blockchain-based projects are now supported by the platform Polygon.
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Pros And Cons Of Polygon
As with every blockchain-based program, Polygon also has certain advantages and disadvantages. Let us have a look at it:
Advantages Of Polygon
- Polygon can maintain quick transaction processing speeds by utilizing a consensus mechanism that completes the transaction confirmation procedure in a single block. The processing of a block takes Polygon an average of 2.1 seconds.
- The POlygon’s transaction fees are kept to a minimum by polygon, with a typical transaction fee of about $0.01.
- Another distinctive advantage of Polygon is its alternative security mechanism, which lets blockchains maintain their independence. As a result, linked blockchains can have full compatibility with the Ethereum mainchain.
- Polygon is the first scaling solution that completely supports the Ethereum Virtual Machine.
Disadvantage Of Polygon
- Polygon is a Layer 2 protocol that operates on the Ethereum network. Polygon would probably lose value if the Ethereum platform is severely disrupted.
- The MATIC token is intended to control and protect the Polygon platform as well as cover transaction costs. MATIC is not typically utilized for everyday transactions, in contrast to certain digital currencies.
Future Of Polygon
In 2021, Polygon established Polygon Studios as a division with a focus on blockchain gaming and non-fungible tokens (NFTs).
If successful, 11 Polygon Studios might make Polygon a top technology provider for decentralized gaming and NFTs.
Polygon hired a CEO in January 2022. Ryan Watt is now the head of gaming at Polygon after working at YouTube.
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