Polygon Crypto (MATIC tokens) is a technology platform known as Ethereum’s Internet of Blockchains. Since its launch, the project has created a fever in the crypto market, and the MATIC token has continuously peaked. The following article will help you better understand Polygon crypto – The Future of Secure and Efficient Blockchain Transactions.
Introduction to Polygon Crypto
Polygon (formerly known as Matic Network) is a cryptocurrency and blockchain scaling solution that aims to address the scalability and usability issues of Ethereum.
In other words, Polygon, formerly known as the Matic Network, provides a simple framework for new and existing blockchain projects to build on top of Ethereum without scalability issues.
Polygon allows users to interact with any decentralized application (DApp) without worrying about network congestion.
To use it, you can “bridge” some of your cryptocurrencies on Polygon and interact with various popular cryptocurrency applications once dedicated to the main Ethereum blockchain.
MATIC is an ERC-20 token. MATIC is used to control and secure the Polygon network and to pay network transaction fees.
Unlike other cryptocurrencies with an infinite supply, MATIC has a capped collection with a circulating supply of approximately $7.4 billion. There will always be at most 10 billion coins in circulation.
What makes Polygon Crypto different from other cryptocurrencies?
Polygon and Ethereum
Ethereum mainly focuses on decentralization and security at the expense of scalability. Therefore, transactions can be expensive and slow. Polygon focuses on providing faster transaction speeds and lower costs than Ethereum.
Layer 1 blockchains like Ethereum provide a platform for developers to build and run dApps, intelligent contracts, non-fungible tokens (NFTs), and more. Polygon is a layer two blockchain designed to help Ethereum achieve scalability.
As a Layer 2 protocol, Polygon does not aim to replicate the functionality of Ethereum. Instead, it helps increase transaction speed and reduce developer costs.
Currently, Ethereum can handle 14 transactions per second (TPS), while Polygon can reach speeds of 7,000 TPS. Polygon makes anything built on the blockchain cheaper and faster, like HOV highway lanes.
MATIC and Polygon
Polygon and Matic are often used interchangeably, but they have distinct differences. Polygon is a layer two scaling infrastructure on the Ethereum blockchain, and MATIC is its native token used to power the ecosystem.
Project integrated side chain, renamed Polygon in 2021. However, following the renaming, the project retained the name MATIC for its native utility cryptographic token.
The name change and subsequent renaming confused the crypto community, as many mistook the two for different projects. In essence, however, Polygon is to Matic what Ethereum is to ETH.
Benefits of using Polygon Crypto
Using Polygon Crypto (MATIC) as a blockchain and cryptocurrency solution has several benefits.
- Ability to process transactions quickly: Polygon is able to maintain a fast transaction processing speed by using a consensus mechanism that completes the transaction confirmation process in a single block. Polygon has an average block processing time of 2.1 seconds.
- Transaction fees have been low: Polygon keeps fees low for using the platform, with a typical transaction fee of ~$0.01.
- Ethereum Compatibility: Polygon is designed to work seamlessly with Ethereum. Developers can easily migrate their applications to Polygon and take advantage of its scalability benefits without significant modifications.
- Interoperability: Polygon enables interoperability between different blockchains and networks, allowing for transferring assets and data across multiple chains. This interoperability facilitates the seamless integration of various decentralized applications and services.
- User Experience: Polygon strives to improve the user experience of decentralized applications. By reducing transaction costs and increasing transaction speed, it offers a more efficient and affordable experience for users.
- Layered Security: By anchoring transactions and data to the Ethereum main net, it inherits the robust security features and decentralization of Ethereum, enhancing the overall security of the Polygon network.
These advantages make Polygon an attractive choice for developers and users seeking to build and engage with decentralized applications and services.
Polygon Crypto Price and market performance
Polygon’s MATIC token has traded for less than 5 cents for most of its history. The price of MATIC has risen sharply but remains below $3.00. On September 22, 2022, MATIC will be trading at around $0.75.
MATIC has a maximum supply of 10 billion tokens. Most – 8.73 billion MATICs – have already been spent.
How to buy and store Polygon Crypto
The easiest way to buy Polygon’s MATIC tokens is through a significant cryptocurrency exchange.
If you do not have an account, you must first register and verify your identity.
After creating an account, you can purchase MATIC via bank transfer, wire transfer, debit, or credit card. Then fund the account with USD or other fiat currency on a cryptocurrency exchange.
You’ll also need a digital wallet, either self-hosted or hosted by a cryptocurrency exchange. Depending on your crypto wallet, you can purchase MATIC directly using a Fiat On-Ramp payment processor. Or you may need to buy another token and then pay a fee to exchange it with MATIC.
Future of Polygon Crypto
Polygon established Polygon Studios in 2021, a Polygon subsidiary focused on blockchain games and non-fungible tokens (NFTs). If successful, Polygon Studios could select Polygon as a leading technology provider for decentralized games and NFTs.
In January 2022, Polygon had a new Chief Executive Officer (CEO). Polygon made headlines when it announced it would be part of Disney’s Accelerator 2022, which is focused on novel technologies, including augmented reality, non-fungible tokens (NFTs), and artificial intelligence, as part of its future storytelling efforts.
Disney joins other notable companies working with the crypto platform, including Meta. Meta plans to test digital collectibles and featured NFTs on its Instagram platform.
While there is no accurate way to predict the price of MATIC tokens, some are optimistic about the future of the project.
Risks and challenges associated with Polygon Crypto
While Polygon has gained significant attention and adoption, it’s essential to be aware of potential risks associated with its technology. Here are some unique risks:
- Loss Potential and Volatility: Volatility can be significantly magnified by speculative speculators, hedge funds, and other institutional investors.
- Currency Threat: Suppose the currency in which the product is denominated differs from the currency you invest in. In that case, the exchange rate between your investment currency and the product’s currency will determine your ultimate return.
- Scalability Challenges: While Polygon aims to address the scalability limitations of Ethereum, it is not immune to its scalability challenges. As network usage grows, there may be bottlenecks and congestion on the sidechains, affecting transaction speeds and costs.
- Network Security: While Polygon benefits from the security of the Ethereum main net, it still faces potential security risks. Attacks such as 51% attacks or other consensus-related vulnerabilities could undermine the integrity of the network.
- Market Volatility: The cryptocurrency market is known for its volatility, and the price of MATIC, the native token of Polygon, can fluctuate significantly.
It’s crucial to thoroughly research and understand the risks associated with Polygon and the broader cryptocurrency ecosystem before engaging with the technology.
Conclusion
In conclusion, Polygon Crypto (MATIC) offers a promising future for secure and efficient blockchain transactions. With its Layer 2 scaling solution and compatibility with Ethereum, it addresses the scalability limitations while ensuring the integrity and decentralization of the network. Although risks exist, Polygon Crypto is a key player in advancing secure and efficient transactions in the evolving cryptocurrency landscape.