What Is Polygon & How Does It Work? Who Created MATIC? (2024)

What Is Polygon (MATIC)?

Polygon is envisioned as a way for any developer to create a dedicated blockchain network combining all of the best features from stand-alone blockchains (flexibility, sovereignty and scalability) with the best of Ethereum (security, developer experience, interoperability).

Polygon’s main objective is to offer a framework for building blockchain networks which can all interconnect, instead of being walled off from each other. Polygon has a number of innovative features planned, including ZK roll-ups, which bundle up large numbers of transfers off-chain into single transactions – and Optimistic roll-ups, running on top of Ethereum to deliver near instant transactions. Both of these features offer unique advantages in the race to scale Ethereum and solve the current network congestion issues and high transaction fees.

Polygon has two prominent competitors; Polkadot and Cosmos. The Polygon team has attempted to overcome the limitations of the competition by introducing compatibility with the Ethereum Virtual Machine (EVM) – making it a very attractive prospect for developers already working with Solidity (Ethereum’s native programming language).

Polygon is truly flexible and has scalability at its core. Many blockchain based projects are currently considering Ethereum compatible blockchains to overcome Ethereum limitations. Polygon’s interoperable messaging protocol and specialised framework offers unique opportunities to leverage Ethereum’s well established, popular ecosystem. Several projects have already taken advantage of Polygon as a scaling solution, including EasyFi (a DeFi platform) Polymarket (a popular prediction market) and Aavegotchi (a NFT collectible trading game).

How Does Polygon Work?

Polygon is the latest in a growing group of crypto projects attempting to solve known pain points in the Ethereum network and wider blockchain ecosystem, while also seeking to simplify entry points for developers.

Offering one click deployment of preconfigured blockchains and introducing an interoperable protocol for exchanging arbitrary messages across Ethereum and other blockchain networks, Polygon provides an optional, modular approach to ‘security as a service’. The Polygon main chain is the Matic PoS Chain adding a (Proof of Stake) security layer to all blockchains launched with Polygon. By taking a multi-faceted approach, Polygon attempts to future-proof it’s own longevity while at the same time securing the prospects of Ethereum with a massive, interconnected blockchain ecosystem.

Polygon consists of four different layers, each serving a specific purpose:

1) The Ethereum layer:Polygon chains can use the secure Ethereum network in order to execute any critical components through a set of smart contracts: finality, staking, checkpoints, and interoperable messaging.

2) The Security Layer: An optional layer that provides ‘validators as a service’ which can check aspects of any polygon chain (fee based). Operating as a meta-chain in tandem with Ethereum performing validator management (registration, shuffling, rewards) and Polygon chain validation. Security layers can be deployed in multiple iterations and on the Ethereum blockchain, where Ethereum miners perform validation.

3) The Mandatory Polygon Networks Layer: This is a constellation of sovereign networks which each serve their own respective network. Responsible for block production, local consensus, and the collation of transactions.

4) The Mandatory Execution Layer: Interprets and executes agreed transactions included in Polygon’s network chains. Two sub-layers consist of a virtual machine implementation Environment and Execution Logic state transition function of a specific Polygon network, usually written as Ethereum smart contracts.

Who Are the Founders of Polygon? (History of Polygon)

Polygon is an open-source project with a decentralized and global team of developers evolved from the successful MATIC network. Originally conceived as a scaling solution, the Matic Network brought massive scale to Ethereum using an adapted version of Plasma with PoS based side chains. Its continued success and partnerships with projects like Decentraland (MANA) and MakerDAO (MKR) coupled with backing from industry leaders such as Coinbase and Binance have allowed the team to expand the project’s ambitions and technical scope.

CEO and co-founder Jaynti Kanani is a creative technology architect with a wealth of experience. As Chief Data Scientist at Housing.com, Jaynti helped secure its status as India’s number one home search platform.

Co-Founder and COO Sandeep Nailwal is a former management consultant at Deloitte and former CEO of Scopeweaver.com, India’s largest professional marketplace for professional services.

Co-Founder and chief product officer Anurag Arjun is a veteran project manager who defines and co-ordinates the MATIC product roadmap, with extensive experience in XBRL solutions – previously with Iris Business Services.

Co-founder and developer Mihailo Bjelic describes himself as a tech maximalist & Etherean.

Polygon’s advisory board is an enviable club that includes developer liaison Hudson Jameson, a DevOps engineer from the Ethereum Foundation; Pete Kim, head of wallet engineering at Coinbase; Anthony Sassano, deal broker at EthHub; and crypto asset investor and serial entrepreneur Ryan Sean Adams, who is currently at Bankless.

What Makes Polygon Unique?

PoS Chain, Plasma Chains, optional shared security, and the (planned) introduction of ZK roll-ups and Optimistic roll-ups makes Polygon a unique and multi-faceted project. Sovereignty for Ethereum (through the use of side-chains) is a key concept of the Polygon modular approach to development.

Dedicated throughput and a fully customizable tech stack offering sovereign governance could position Polygon as the go-to solution for endless applications with high data sensitivity. The developer experience is equivalent to Ethereum, so no new protocol level knowledge is required – and neither are token deposits, fees, or permissions.

Polygon’s team also believes that it can successfully incorporate any scalability in addition to its own original solutions. A bold claim which could be a crucial factor in securing Polygon’s primary position in a rapidly evolving Ethereum based and wider blockchain ecosystem.

What Gives Polygon Value?

Polygon’s value lies in the MATIC network’s solidly established credentials and the MATIC token’s solid presence as a top 100 cryptocurrency.

Polygon’s recent modular evolution has set it up to succeed as a solution where its competitors have so far failed: solving current Ethereum network challenges. Polygon’s modular approach to interoperability is an increasingly sought-after function, as blockchain approaches mass adoption and becomes an enticing technology solution for enterprise-level companies. Polygon has hedged its bets with its multi-faceted approach so that if one aspect of scalability fails to achieve its long-term objective, other approaches can take its place and continue to expand Ethereum’s capabilities. This, in turn, benefits the wider blockchain ecosystem as it continues to develop into maturity.

As a long-term solution offering bountiful side-chain capabilities, Polygon has every chance to become the connection of choice for developers – giving the MATIC token valuable utility.

How Many Polygon (MATIC) Coins Are in Circulation?

The Matic token has a current circulating supply of coins in circulation with a fixed total of 10,000,000,000 tokenns. Having a fixed supply of coins instead of an infinite supply can theoretically increase a token’s value, but is dependent on a number of factors – not least being the perceived value of the token’s project and success through active project solutions/technology take-up.

When scarcity increases due to diminished supply (as with Bitcoin) remaining tokens can be perceived as having a scarcity value independent of function. As a utility token, Polygon’s future price movement is also dependent on the throughput of network transactions utilizing the token to pay for network transaction fees. The MATIC token is used both to pay transaction fees and participate in proof-of-stake consensus.

Other Technical Data

SDK:The Polygon.io API is organized around REST. The API contains predictable resource-oriented URLs, uses standard HTTP response codes, accepts form-encoded request bodies, and returns JSON-encoded responses, authentication, and verbs. The Polygon SDK and API offer another level of easy access for developers.

How Is the Polygon Network Secured?

The Matic PoS chain is an Ethereum Virtual Machine (EVM) compatible side-chain secured by a permissionless set of Proof of Stake validators and checkpoints which are submitted to the Ethereum Blockchain.

MATIC Holders can become MATIC delegators – or token holders who don’t want to run a validator node themselves. Delegating staking tokens to a validator returns a portion of the validator’s revenue in exchange. Because revenue is shared with validators, delegators share the risk, so delegators have an important role in the MATIC system, responsible for choosing the best validators.

How To Use Polygon

Stake Polygon tokens and become part of the validation ecosystem. Staking Polygon tokens is currently rewarded with a 20% token return annually, which compares favorably to similar staking opportunities, others offering between 5-10% and often below 5%.

As staking becomes an increasingly popular way to effortlessly return passive income for the crypto investor, there are a number of options for staking. With Polygon, staking can be done either through the MATIC network directly or through a number of third-party platforms.

How To Choose a Polygon Wallet

The type of Polygon (MATIC) wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets provide the most secure option with offline storage and backup. Both Ledger and Trezor hardware wallets offer storage solutions for MATIC. Hardware wallets can involve a bit more of a learning curve and are a more expensive option, however. As such, they may be better suited to storing larger amounts of MATIC for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of MATIC or more novice users.

Online wallets or web wallets are also free and easy to use, accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives, however. As you are likely trusting the platform to manage your MATIC, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts or for more experienced frequent traders.

Kriptomat offers a secure storage solution, allowing you to both store and trade your MATIC tokens without hassle. Storing your MATIC with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Selling and buying MATIC, or exchanging them for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Polygon Staking

Polygon uses an efficient and low-energy Proof of Stake model to secure its network and achieve consensus. Thus, MATIC holders are able to stake their MATIC tokens in order to generate passive staking rewards.

MATIC staking can be performed by operating your own node, delegating your stake to another node, or in 3rd-party staking pools.

Conclusion

Polygon brings an impressive, custom-designed suite of tools to the entire blockchain ecosystem – not only promising to alleviate the challenges facing Ethereum but helping to design a future where blockchain interoperability becomes routine. Building solidly on the advances of the MATIC network with its iteration of Plasma (proving a useful tool in the smoothing of transactional flow), Polygon’s modular sovereign security options make it an attractive environment for many projects.

As a worthy competitor to Polkadot and Cosmos, Polygon’s recent February 2021 release gives it an evolutionary advantage, partly borne out of the perception that neither of the former has so far fully achieved their objectives. The project aims to become the internet of blockchains and is a crucial stepping stone in the development of a fully-automated machine economy.

Polygon FAQ

What Is the Expected TPS Rate on a Side Chain?

A single side chain has a scalable capacity of over 65,000 transactions per second.

Where Do Staked Tokens Reside?

Staked tokens are locked in a smart contract deployed on the Ethereum blockchain. Validators do not hold the actual custody of the tokens delegated to them.

How To Buy Polygon

Buying MATIC is as easy as visiting Kriptomat’s How to buy Polygon (MATIC) page and choosing your preferred method of payment.

How To Sell Polygon

If you already own MATIC and hold it on a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Polygon Price

Several factors influence MATIC price, including exchange inflows and outflows, sentiment, technical and fundamental developments, the news cycle, and the general economic environment.

Polygon (MATIC) price is also directly impacted by the demand for it by those using the network and wanting to participate in staking.

Ultimately though, the price is decided at any given moment by the cumulative buying and selling of millions of participants worldwide. You can keep up to date on the latest price action and news using crypto exchanges like Kriptomat or one of the many different cryptocurrency tracking services.

The current MATIC price is EUR.

The 24-hour trading volume of MATIC is EUR. MATIC is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of EUR. It has a circulating supply of .

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