Home Cryptocurrency News What Is Polygon (MATIC) & Why Is It So Important to Ethereum?

What Is Polygon (MATIC) & Why Is It So Important to Ethereum?

Introduction

Polygon is a highly appreciated secondary solution of scaling for ETH Blockchain. These solutions work best for the existing network of Blockchain instead of the own Blockchain. If you are among those waiting for the ETH-based decentralized finance (DeFi) and Non-Fungible Token (NFT). The solution of scaling like the Polygon helps in making all things handy and low price. In the case of Polygon, transaction batches are processed on the proof-of-stake.

When it comes to Matic, there are different projects in Blockchain used as a part of conjunction in the Matic network. Polygon had the original name as the Matic Network before the project got its rebranded name in the initial month of 2021. By the end of December 2021, there were 7.16 billions of MATIC coins. These are out of 10 billion in total, the rest which are minted by all stakers.

What is Polygon (MATIC)?

Polygon’s Matic is quite an exciting product that was launched in 2017, and is the native token called as the Polygon. Presently, it is among the top 15 cryptocurrencies and has witnessed the rise by over 30% over the years. Polygon MATIC is the layer-2 solution for scaling designed especially for the ETH, and helps in improving the network’s overall transaction, reducing overall of the transaction, which is known as the Gas Fees. 

Secondly, Polygon is known as the platform helping developers to launch their own sovereign Blockchains, which are the overall advanced modules enabling deployment of the interconnected network of Blockchains. The Polygon Matic is also known as Ethereum’s internet of Blockchains because the aim is to make the scalable solutions supportive for the complete ecosystem of ETH. 

Analysts have aggregated the Polygon (Matic) as the Layer-2 Aggregator, and is aiming to create an ecosystem of multichain ETH using superior interoperability. In other words, Polygon is called the plasma-related aggregator. Stakeholders of Polygon function similarly to PoW miners similar to Ethereum. For the approval of the exchanges, stakeholders will need to lock tokens of MATIC. Block creators can create blocks settling all exchanges available at the network. 

How does Polygon (MATIC) Work?

The Polygon (MATIC) similarly functions just like the Proof-of-stake based blockchains. Right from its client node, token, Local dAPPS, validator nodes, and others are quite similar to different networks. Polygon’s modular system used for the custom networks enables developers to send presets to Blockchain networks using one snap. Moreover, by using Polygon (MATIC) users can use Blockchain with other Blockchain without facing any problems. 

Brief History of Polygon (MATIC)

The journey of the MATIC polygon network began in October 2017, and is an Indian product established after founders identified scalability issues faced by Ethereum users. They wanted to solve issues faced by users of ETH. MATIC is designed to provide proper solutions of scaling designed for ETH, through sidechains and offering complete asset security. It can only happen by using Plasma Framework, which was quite a good product. The rise of Polygon happened by 9th February, 2021, turning it as the bridge between different blockchains and available networks. Overall, MATIC network does around 5 million transactions on a daily basis. Similarly, ETH does around 1.7 million transactions on a daily basis. In the year 2022, Polygon (MATIC) is one such crypto which is showing a good sign of rise, and will play a major role in the Blockchain network ecosystem.

Is Polygon (MATIC) a good Investment?

Polygon (MATIC) is something that one should look forward to in coming months. Here, the blockchain ecosystem network will play a major factor to remain in the market. Thanks to its easy to use network, investors can find it easy for investment and developers to develop in all senses. In the past four years, the Polygon surged quickly giving an exciting plan for investors. Presently, there are 60% of total supply amounting to $14 billion of overall valuation. Also there are over 30,00 users as compared to Ethereum having 26,000 users. If you want to know more about year vise Matic coin future price prediction check expert opinions.

Why is it Important to Ethereum?

Polygon network is built for providing overall a good experience for developers in operating and is in harmony with the Ethereum chain. It is compatible with Ethereum Virtual Machine making it worth it for developers who want a platform for building effective projects. For Etherum users, the Polygon (MATIC) helps in supporting apps and using Solidity language programming. 

Polygon vs. Ethereum- Difference

One of the major differences between Polygon vs Ethereum is building ETH decentralized apps along with blockchains which is quite cheap. Moreover, the NFT is quite fast, also there are no zero gas fees involved in Polygon MATIC. 

Future of Polygon

Over the years, MATIC of Polygon gained a massive backing from investors, and since 2021, the overall price of the crypto increased from $0.01 on 1st Jan to $2.16. It could be quite exciting to see how MATIC token will change the overall price and market of Polygon. 

Conclusion

Looking at the potentials of the Polygon MATIC, there is a good assumption that the platform will rise and solve the blockchain scalability issues. Different developers working on Blockchain will be able to build their own network decentralized in terms of tools and access to the customized options.

Marisol Contreras
Marisol is a crypto analyst and crypto trader. She invests in various cryptocurrencies and has a great idea about the finance market. She works as a chief editor of our team and makes the latest crypto news. She can be contacted by email: marisol@forexnews.world.

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