Polygon - MATIC
Updated: Jun 21
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What is Polygon (MATIC) and how does it work?
Polygon, previously known as MATIC Network, is a framework that allows for interconnectivity between blockchain networks. Polygon combines the best of Ethereum and sovereign Blockchains into a full-stack scaling solution. MATIC aims to address some of Ethereum's limitations, such as poor experience, via high speed and delayed transactions, and lack of community governance, by using a sidechain solution. Similar to Ethereum the transactions of Polygon can be tracked by using the Polygonscan, the block explorer for this blockchain.
Originally MATIC used Plasma, the process of transacting off-chain before finalizing them on the Ethereum network, whilst Polygon network is designed as its own platform that allows for interoperable blockchains. Polygon allows developers to launch their own preset customizable blockchains with modules that allow for the creation of sovereign blockchains with more specific functionality.
Polygon can be defined as a four-layer system composed of the Ethereum layer, security layer, Polygon networks layer, and execution layer.
The Ethereum network is implemented through smart contracts that handle transaction finality, staking, and communication between Ethereum and the various Polygon chains.
The security layer runs in parallel with Ethereum and provides a "validators as a service" role which allows chains to benefit from an additional layer of security.
The Polygon network layer, or the ecosystem of the blockchain networks built on Polygon. Each has its own community and is responsible for handling local consensus and producing blocks.
The execution layer which is Polygon's Ethereum Virtual Machine (EVM) implementation used for executing smart contracts.
Chains that run on the Polygon network are able to communicate both with one another and with the Ethereum main chain thanks to Polygon's arbitrary message passing capabilities. This allows for a variety of additional use-cases, such as interoperable decentralized applications (dApps) and the exchange of crypto between diverse platforms.
Last update 8/2/2022
Polygon crypto (MATIC) originally launched as one of the Binance Launchpad projects in May of 2019, with an exclusive token launch on the platform. It was originally listed with eth polygon pairs, but BTC and USDT ones followed shortly after.
After the launch on Binance, Polygon MATIC price was around $0.003, but this didn't last long as just a few weeks after, in November, its price spiked as much as $0.045, reaching 15x more than its launch price. MATIC price, similarly to most crypto markets in 2020, had a whole year of correction, falling as low as $0.10 before re-reaching its ATH price again in December 2020.
However, it wasn't until mid-2021 that the Polygon coin saw its biggest gains, rising as high as $2.7, creating a new ATH, this was 900x from launch price and 135x higher than its price at the beginning of the year. Following that prices have cooled down before making a new ATH of $2.8 in early 2022. Ever since prices have corrected back below $2, but it's still looking really bullish on the overall trend. It's likely that in 2022 ATHs will be tested and prices might reach new higher levels.
Recent news about MATIC
Based on the recent announcement by Dvision network, Dvision is set to conduct the 2nd LAND Sale on Polygon Mainnet. LAND is an ERC-721 compatible NFT used as essential units in Meta-Cities in the Dvision World's Metaverse, that will be minted on Polygon. This news is particularly positive for MATIC as it brings more attention and use cases to its network, whilst still allowing all the ecosystem-related activities to occur within their native chain-supported marketplaces, such as OpenSea.
Additionally, recently Unstoppable Domains, an NFT provider, announced that due to its integration with Polygon, users had saved up to $100M in transaction fees whilst still transacting on Ethereum. This just goes to show how practical Polygon is, and how its use cases can help traders