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Last updated : 01/06/2026 12:39:21 am
Polygon (formerly Matic Network) is a Layer 2 / sidechain solution that enables users to access Ethereum applications (DApps) with reduced fees and near-zero latency.
In their research, the Matic Network team came across a publication by Ethereum co-founder Vitalik Buterin and Lightning Network co-founder Joseph Poon, detailing a new scalability solution: « Plasma ».
This solution is based on the duplication of a parent blockchain, which can be copied more quickly while maintaining security.
The Plasma solution will form the basis of the Matic blockchain.
Matic Network becomes Polygon in early 2021.
Much more than a name change, this redesign signals a shift from a single blockchain to an aggregator of scalability solutions for Ethereum.
Any developer can create a scalable blockchain here.
Polygon works by connecting Ethereum DApps to a network of interconnected sidechains.
Users can therefore interact with DApps on the Polygon network without having to wait for block confirmations on the main Ethereum network.
Polygon’s key feature is its ability to handle several million transactions per second.
This is made possible by the use of Plasma and other cutting-edge technologies such as Proof-of-Stake protocol optimization and Shard Chains.
Polygon enables users to access Ethereum applications at low cost and with near-zero latency.
What’s more, the network is capable of handling several million transactions per second.
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It was against this backdrop that a team of developers, including Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, Mihailo Bjelic and Anurag Arjun, began their journey to find a solution.
They envisioned a framework capable of providing a second-layer(Layer 2) scalability solution for Ethereum, preserving its security and decentralization while dramatically improving its scalability by increasing the number of transactions per second possible.
In 2017, the team initially launched an open source project known as Matic Network.
Its aim was to leverage the Plasma framework, an Ethereum scalability solution inspired by the Lightning Network for Bitcoin (you can buy Bitcoin with ease here).
The main aim of the project was to offload a significant proportion of Ethereum’s transactions onto its sidechain, offering near-instantaneous transaction confirmations.
Matic Network has rapidly gained ground within the blockchain ecosystem.
Its commitment to scalability and interoperability, combined with a robust set of developer tools, has attracted projects looking to expand their presence in the Ethereum ecosystem.
By the end of 2019, Matic Network had established itself as an important player in the blockchain space.
However, the team’s ambition went beyond simply providing scalability solutions.
They envisioned a multi-chain ecosystem capable of interconnecting various blockchains, enabling fluid communication between different networks.
This vision led to the rebranding of Matic Network as Polygon in February 2021.
The name ‘Polygon’ was chosen to reflect the project’s multi-dimensional approach to blockchain scalability.
It was not intended to be a stand-alone blockchain, but rather a framework that could integrate with and enhance existing blockchain networks, including Ethereum, Binance Smart Chain and others.
The launch of Polygon marked a significant milestone in the evolution of blockchain technology.
It offered developers a versatile platform with the ability to deploy and interact across multiple chains.
The Polygon Development Kit (SDK) provided a robust set of tools for building custom chains, while the Proof of Stake consensus mechanism ensured the network’s security and sustainability.
The ecosystem surrounding Polygon began to flourish.
DeFi projects, NFT marketplaces, gaming and a host of DApps flocked to take advantage of its scalability capabilities.
Low transaction costs and high network throughput made it an attractive choice for developers looking to create scalable, user-friendly applications.
Polygon had firmly established itself as a key player in blockchain, with a thriving community and a rapidly expanding ecosystem.
His journey from Matic Network to Polygon illustrates the power of innovation and the collaborative spirit of the blockchain community in tackling the pressing challenges facing the industry. As a leader in scalability solutions, Polygon continues to push the boundaries of blockchain technology, promoting interoperability and playing a central role in the wider adoption of decentralized applications and blockchain solutions on a global scale.
Polygon (MATIC) is a type of Layer 2 solution that enables other blockchains to bring greater scalability to applications by processing off-chain transactions.
All the while, they remain connected to the main chain.
This facilitates processing outside the main network.
At the same time, they can take advantage of the security and decentralization of the Ethereum backbone.
This flexibility speeds up processing times and reduces gas costs.
Chains built on the Polygon blockchain revolve around Matic tokens, the network’s native crypto.
Each sidechain is an independent blockchain that processes transactions and smart contracts autonomously.
However, these sidechains are interconnected with the Ethereum blockchain, enabling the transferability of assets between the different chains.
One of the fundamental aspects of Polygon is its ability to enable users to transfer their assets between the main Ethereum blockchain and Polygon sidechains.
This is done via bridges, which secure assets as they cross between the two networks.
Polygon offers various types of sidechain, adapted to different use cases.
These include PoS (Proof of Stake) sidechains, which use proof-of-stake consensus to validate transactions.
There are also PoA (Proof of Authority) sidechains, where a restricted group of entities is responsible for block validation.
Each type of sidechain has its own advantages and is adapted to specific use cases.
Although Polygon’s sidechains operate independently, they are linked to the Ethereum blockchain by security mechanisms such as « Checkpointing ».
This means that sidechain blocks are regularly « rooted » on the Ethereum blockchain, reinforcing the overall security of the Polygon network.
On Polygon PoS sidechains, consensus is reached via a staking mechanism.
Validators must lock up a certain quantity of MATIC tokens as collateral to be eligible to validate transactions.
Rewards in MATIC tokens are distributed according to participation in the consensus.
On the Polygon network, transaction fees are considerably lower than on Ethereum.
This makes interactions much more affordable for users and encourages adoption of the ecosystem.
One of Polygon’s other strengths is its interoperability with other blockchains.
It can interact with networks such as Binance Smart Chain and other blockchains via cross-chain bridges, enabling the transfer of assets between different platforms.
Polygon is used for a multitude of use cases, including DeFi (Decentralized Finance) applications, NFT (Non Fungible Tokens), blockchain gaming, and much more.
Its scalability and low transaction costs make it a highly attractive option for developers and users alike. The Polygon (MATIC) network is based on an architecture of interoperable sidechains that work in tandem with Ethereum.
It offers an efficient scaling solution by reducing transaction costs and increasing processing speed, while preserving Ethereum’s characteristic security and decentralization.
Thanks to these features, Polygon has gained in popularity as a versatile blockchain platform, attracting projects and developers from all over the world.
The Polygon network can be thought of as a set of four layers: – 1st layer: Ethereum layer – 2nd layer: security layer – 3rd layer: Polygon network layer – 4th layer: execution layer The network uses smart contracts to enable inter-chain transactions.
The connection technology is Polygon bridge, a bidirectional channel that does not require a trusted third party between Polygon and Ethereum (main chain).
The structure is designed so that Polygon chains can operate independently off-chain without overloading the main chain.
This reduces time and costs.
The PoS (Proof of Stake) and Plasma bridges are two key mechanisms that play a fundamental role in the operation of Polygon (formerly known as the Matic Network).
They enable the transfer of assets between the Ethereum blockchain and Polygon’s various sidechains.
Each of these bridges has its own characteristics and is designed to meet specific needs in terms of security and transfer speed. PoS (Proof of Stake) bridge: Polygon’s PoS bridge is a mechanism designed to transfer assets between the Ethereum blockchain and Polygon sidechains that use proof-of-stake (PoS) consensus.
When a user wishes to transfer assets from Ethereum to a Polygon sidechain, they send them to a specific address on the Ethereum blockchain.
These assets are then locked into a deposit address, meaning that they are temporarily set aside on the Ethereum blockchain.
Once the transaction is confirmed on Ethereum, the PoS bridge receives the notification and creates a corresponding record on Polygon’s sidechain.
This unlocks the corresponding assets on the sidechain.
The assets are then issued on Polygon’s sidechain, where they can be used in accordance with the functionality of that particular chain.
It’s important to note that this process is reversible.
If the user wishes to return assets from a sidechain to the Ethereum blockchain, the process is simply reversed.
The PoS bridge ensures a high level of security through the use of PoS consensus mechanisms on Polygon sidechains.
This ensures that transactions are securely validated before being finalized. Plasma bridge: Plasma bridge is another essential Polygon mechanism that enables the transfer of assets between Ethereum and Polygon sidechains.
Users begin by depositing their assets on a specific Plasma contract located on the Ethereum blockchain.
This contract is designed to manage the transfer process. Once the deposit is made on the Plasma contract, it is confirmed on the Polygon sidechain.
This creates a record of the asset on the sidechain.
The assets are then available on the Polygon sidechain and can be used in accordance with the functionalities of that particular chain.
When the user wishes to return the assets from the sidechain to Ethereum, they can make an exit request.
This means that the assets are locked onto the sidechain and a proof of exit is generated.
This proof of exit is then verified on the Ethereum blockchain to ensure that it is legitimate.
Once validated, the corresponding assets are released on the main blockchain.
The Plasma bridge guarantees a high level of security thanks to proof verification on Ethereum.
This ensures that transactions are secure and cannot be revoked once they have been confirmed. Comparison of the two bridges: The Plasma bridge relies on Ethereum-based proof verification, giving it a high level of security.
The PoS bridge, on the other hand, uses PoS consensus on sidechains, also offering a high level of security.
Plasma bridge can offer faster confirmation times, as it relies on proof verification.
The PoS bridge works with PoS sidechains, which can result in slightly longer confirmation times.
Both bridges enable bidirectional transfers between Ethereum and Polygon sidechains.
The Plasma bridge can be a little more complex to implement due to proof verification.
The PoS bridge is simpler to use and may be more developer-friendly.
Ultimately, both bridges are crucial components of the Polygon ecosystem, each bringing its own specific benefits depending on needs and use cases.
They enable users to take full advantage of the scalability offered by Polygon while retaining the ability to transfer assets to and from the Ethereum blockchain.
A Layer 2 is an additional layer built on top of an existing blockchain (in this case, Ethereum) to improve its performance.
It offloads some of the workload from the main chain, reducing congestion and transaction costs.
Layer 2s emerged in early 2019, in response to the need to solve scalability issues on blockchains, particularly Ethereum.
The Ethereum network, in particular, suffered from congestion and high transaction costs, prompting the development of Layer 2 solutions.
Layer 2s emerged because of several technical challenges facing blockchains, including: – Scalability: Layer 1 blockchains, like Ethereum, have a limited capacity in terms of transactions per second (TPS).
Layer 2 blockchains offer a solution for processing larger numbers of transactions at lower cost. – Transaction costs: By moving some transactions off the main chain, Layer 2 reduces transaction costs, making them more accessible to users. – Latency: Layer 2 can provide faster transaction confirmations using more efficient consensus mechanisms. – Adoption: Layer 2 facilitates the adoption of blockchains by making the user experience smoother and less costly.
Polygon and Ethereum enjoy a close symbiotic relationship, based on the concept of sidechains and blockchain interoperability.
Polygon is essentially an extension of the Ethereum ecosystem.
It functions as a network of sidechains that work in concert with the main Ethereum blockchain.
One of Polygon’s main objectives is to solve the scalability problems facing Ethereum.
By offering sidechains, Polygon enables Ethereum to process a higher number of transactions per second (TPS) and reduce network congestion.
This improves the user experience by reducing confirmation times and transaction costs.
Thanks to interoperability between Polygon and Ethereum, users can transfer their assets (ETH, ERC-20 tokens, etc.) between the two networks.
For example, a user can deposit ETH(live ETH quotes) on a smart contract in the Ethereum ecosystem, then migrate them to a Polygon sidechain using a bridge.
Wallets that support Ethereum are often also compatible with Polygon.
This means that users can use the same wallets to manage their assets on both networks.
In addition to assets, it is also possible to transfer data and information between the two networks.
This opens the door to a wide range of applications and use cases that can benefit from this interconnectivity.
Although Polygon’s sidechains operate independently, they are linked to Ethereum by security mechanisms such as « Checkpointing ».
This means that sidechain blocks are regularly « anchored » to the Ethereum blockchain, reinforcing Polygon’s overall security. Bridges, as described above, play a central role in the connection between Polygon and Ethereum.
They enable assets to be transferred back and forth between the two networks.
Developers can create decentralized applications (DApps) that run on both Ethereum and Polygon sidechains.
This offers flexibility and extended reach for developers, who can take advantage of Polygon’s scalability while benefiting from Ethereum’s huge ecosystem.
The interoperability between Polygon and Ethereum has enabled Polygon to become a versatile platform that accommodates a multitude of use cases, including DeFi applications, NFTs, blockchain gaming, and much more.
Polygon and decentralized finance (DeFi). The DeFi (Decentralized Finance) ecosystem on Polygon has become a hub of innovation and exponential growth in the blockchain field.
Taking advantage of Polygon’s scalability and low latency, many DeFi applications have migrated or been created directly on this network.
Here’s an overview of the thriving DeFi ecosystem on Polygon: The DeFi ecosystem is based on principles of decentralization, openness and affordability.
It aims to eliminate traditional intermediaries such as banks and enable users to access financial services directly via smart contracts on the blockchain.
Major DeFi protocols such as Aave, Curve Finance(buy CRVs with Coinhouse), Sushi(SushiSwap courses), and many others, have expanded their business on Polygon.
These protocols offer various services, such as lending, borrowing, token exchange and liquidity provision, with extremely low transaction fees compared to Ethereum.
Lending and borrowing platforms on Polygon allow users to earn interest by lending their crypto assets, or to borrow funds using the same assets as collateral. Aave, for example, offers a wide variety of assets that can be used as collateral to borrow other tokens.
DEXs on Polygon such as SushSwapi, QuickSwap, and Cometh offer decentralized trading services that allow users to trade tokens directly from their wallets without having to go through intermediaries.
What’s more, these platforms offer incentives in the form of liquidity fees for those who provide liquidity to the trading pool.
Many DeFi protocols on Polygon incorporate decentralized governance mechanisms that enable the community to participate in decisions concerning the development and direction of the protocol.
Token holders can vote on proposed changes.
Polygon’s native token, MATIC, plays a crucial role in the DeFi ecosystem.
It is often used as a means of payment for transaction fees, as collateral for lending and borrowing protocols, and as a reward for liquidity providers.
The DeFi ecosystem on Polygon is constantly evolving.
New financial protocols, services and products are regularly introduced, demonstrating the vitality and innovation of the DeFi community on this network.
Scalability: Transactions on Polygon are much cheaper and faster than on Ethereum, making the DeFi ecosystem more accessible. – Security: Thanks to Polygon’s built-in security mechanisms, users can be confident in the safety of their transactions and assets. – Diversity of services: DeFi protocols on Polygon offer a wide range of financial services, from borrowing and trading to staking and liquidity incentives. The DeFi ecosystem on Polygon represents a vibrant and dynamic model of decentralized finance, leveraging the benefits of Polygon’s scalability to deliver financial services accessible to a global audience.
This reflects the growth and maturity of the DeFi ecosystem within the broader blockchain ecosystem. Polygon and NFTs. One of the most significant benefits of using Polygon for NFTs is the same as for the development of DeFi: the drastic reduction in transaction fees compared to Ethereum.
Transactions on Polygon are considerably cheaper, making the creation, buying and selling of NFTs more accessible to a wider audience.
Polygon’s low fees and scalability open the door to a wider range of use cases for NFTs.
This includes blockchain game creation, digital collectibles, virtual land, augmented reality objects, certificates of ownership, and much more.
Polygon is ideal for developing event ticketing in the form of NFTs, for example, or for thinking about on-chain digital passport solutions.
Polygon’s advantages:- Improved scalability: One of Polygon’s main advantages is its ability to process a large number of transactions per second (TPS).
Thanks to its sidechain architecture, it offers significantly improved scalability compared with Ethereum. – Low transaction costs: Transaction costs on Polygon are considerably lower than on Ethereum.
This makes interaction with the blockchain much more affordable for users. – Interoperability with Ethereum: Polygon is tightly integrated with Ethereum thanks to its bridge mechanisms.
This enables the easy transfer of assets between the two networks, offering greater flexibility for users. – Developed ecosystem: Polygon has a well-established blockchain ecosystem with a multitude of DeFi protocols, games, NFT marketplaces and other applications.
This offers a variety of opportunities for use and integration. – Easy-to-access developer environment: Polygon offers detailed documentation, well thought-out development tools and an active community.
This makes it easy to create and deploy projects on the platform. – Security and purpose: Although Polygon’s sidechains operate independently, they are linked to Ethereum by security mechanisms such as checkpointing.
This strengthens overall network security. Disadvantages of Polygon:- Potential centralization: Some of Polygon’s sidechains are managed by a small group of entities, which may raise concerns about centralization, particularly on PoA (Proof of Authority) sidechains. – Less security than the main blockchain: Although Polygon has robust security mechanisms, it is generally considered less secure than Ethereum’s main blockchain.
This can be a concern for projects requiring the highest level of security. – Complexity for new users: Although Polygon offers an efficient scaling solution, its operation as a sidechain network can be difficult for new users to understand. – Dependence on Ethereum: Although interoperability is an asset, dependence on Ethereum means that Polygon can be influenced by the scalability and cost issues affecting Ethereum.
The MATIC token is the native token of the Polygon platform.
It plays several crucial roles within the Polygon ecosystem: – Payment of transaction fees: MATIC is used to pay transaction fees on the Polygon network.
When users carry out operations such as transferring funds or executing smart contracts on Polygon, they must use MATIC to pay the network’s validators. – Staking and Governance: MATIC holders can choose to stake their tokens in Polygon’s proof-of-stake (PoS) consensus mechanism.
By doing so, they participate in the transaction validation process and are rewarded in return.
In addition, MATIC holders also have the right to vote on governance proposals to influence decisions on the evolution and direction of the Polygon ecosystem. – Collateral for DeFi protocols: The MATIC token can be used as collateral for Decentralized Finance protocols running on Polygon.
This means that users can lock their MATIC tokens into smart contracts to borrow other assets, such as stablecoins, at specified interest rates.
–Participation in incentives and reward programs: Some projects and protocols on Polygon offer incentives and reward programs in MATIC to encourage adoption, participation and community involvement.
–Distribution of DeFi rewards: In the DeFi ecosystem on Polygon, users who provide liquidity or participate in yield farming mechanisms can be rewarded in MATIC according to their participation and protocol performance.
–Partnerships and integrations: MATIC is often used as a means of payment for partnerships and integrations within the Polygon ecosystem.
It can be used as an incentive for developers and projects to build or integrate solutions on the platform.
It’s important to note that the role and uses of the MATIC token may evolve over time as network updates and new features are introduced.
As Polygon’s native token, MATIC plays a central role in the platform’s economy and ecosystem.
KEY FIGURES
| Max supply | 10 000 000 000 MATIC |
|---|---|
| Total Supply | 10 000 000 000 MATIC |
| Circulating Supply | 9 299 803 030 MATIC |
| Actively staked | 3794 249 669 MATIC (38% of total supply)) |
| MarketCap | $4 850 508 786 |
| Fully Diluted Market Cap | $5 222 807 479 |
| Inflation rate / Emission / Burn | Suppy set at 10 billion MATIC which are released with an inflation rate of 6 to 10% per year. A portion of the MATIC used for transaction costs is burned (destroyed) at a rate of around 0.3% a year. |
INITIAL ALLOCATION
| Private sale (seed round + early supporters) | 3,8% |
|---|---|
| Binance Launchpad | 19% |
| Team | 16% |
| Advisors | 4% |
| Staking rewards | 12% |
| Foundation | 21,86% |
| Ecosystem | 23,33% |
TECHNICAL DATA
| Transactions per second | Up to 75,000 |
|---|---|
| Consensus mechanism | Proof of Stake (PoS): Staking |
| Programming language | Solidity (Ethereum language) |
| Security | is based on Ethereum’s level of security |
| Governance | MATIC token holders take part in the protocol improvement process (proposals, voting, etc.). |
| Bridges | Polygon Bridge |
| Compatible wallets | Ledger, Trezor, Metamask, etc. |
Polygon (MATIC) is establishing itself as a widely adopted Layer 2 solution in the ecosystem.
The current Polygon (MATIC) valuation is seen as an attractive opportunity for portfolio diversification, offering the possibility of choosing an altcoin likely to generate good returns over the next few years.
It’s important to note that this type of asset carries risks, not least because of the fierce competition in this field.
However, when it comes to selecting a token to include in one’s portfolio, Coinhouse recommends analyzing the Total Value Locked (TVL), and for the moment, Polygon (MATIC) is leading the way ahead of its competitors.
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