What is Polygon (MATIC)? Guide For Beginners

Polygon is one of the most popular Ethereum layer-2 scaling solutions with a booming DeFi ecosystem. Here’s everything you need to know about it.

Polygon, formerly known as MATIC network, is a layer-2 scaling solution created in 2019 to address several limitations in the Ethereum blockchain, such as transaction speed, throughput, and gas fees.

It was originally designed as a scaling solution, but it rapidly evolved into a multi-purpose ecosystem that’s been receiving a lot of attention. MATIC, its native token, debuted on the Binance Launchpad in 2019 amid the Initial Exchange Offerings (IEO) boom.

But first thing’s first, let’s see what  layer-2 solutions are if we want to have a better knowledge of Polygon.

  1. Introduction to Polygon (MATIC):
  • Polygon, formerly MATIC network, is a popular Ethereum layer-2 scaling solution.
  • Created in 2019, it addresses Ethereum’s limitations, such as transaction speed, throughput, and gas fees.
  • Evolved into a multi-purpose ecosystem with a focus on DeFi.
  1. Layer-2 Solutions and Their Necessity:
  • Layer-2 solutions, like Polygon, run parallel to mainnets (e.g., Ethereum) to enhance throughput and reduce gas fees.
  • Essential for DeFi, they offer increased scalability without compromising the security of the mainnet.
  1. How Polygon Works:
  • Utilizes Proof of Stake (PoS) consensus, rewarding users with MATIC for validating transactions.
  • Features a PoS bridge for transferring funds from Ethereum to Polygon.
  • The Polygon Protocol connects Polygon-based blockchains and integrates with Ethereum.
  1. Polygon SDK and Development Tools:
  • Introduced Polygon SDK for developers in May 2021.
  • Aims to make Ethereum a multi-chain system with Ethereum-compatibility, modularity, and extensibility.
  1. Utility and Use Cases on Polygon:
  • Offers a wide range of use cases, including launching blockchains, using DApps, minting NFTs, and more.
  • Hosts successful projects like Aave, Curve Finance, SushiSwap, and OpenSea.
  1. MATIC Token and Distribution:
  • MATIC is the native token used for gas fees, staking, and governance.
  • Circulating supply: 7.48 billion MATIC tokens; max supply: 10 billion.
  • Tokenomics include allocations for advisors, private sale, team, launchpad sale, ecosystem, and foundation.
  1. The Team Behind Polygon:
  • Polygon was created by four software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.
  1. Popular DApps Using Polygon:
  • Highlights DApps like SushiSwap, Curve Finance, 1inch, Aave, and QuickSwap utilizing the Polygon network.
  1. Closing Thoughts:
  • Polygon is seen as an exciting DeFi project with potential for scalability and blockchain interoperability.
  • With developer tools, innovative mechanisms, and EVM support, it could attract a significant influx of projects in the future.

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