What is Polygon?Previously known as Matic Network, Polygon serves as a framework for building interconnected blockchain networks. Polygon is an improvement from the Matic network since Matic used Plasma technology to process transactions off—chain before finalizing them on the Ethereum network. Polygon is an all-in-one blockchain solution.
Besides looking to solve Ethereum’s high gas fee problem, Polygon also aims to address the network’s poor user experience and lack of community governance. How does it work?
The Polygon network consists of four layers. They are the Ethereum layer, security layer, Polygon network layer and execution layer.
- The Ethereum layer is basically smart contracts that are implemented on the Ethereum network. The smart contracts are used to communicate between Ethereum and the various Polygon chains.
- The security layer is an additional layer of security and validates services like staking and transaction finality.
- The Polygon network layer is the ecosystem of blockchain networks that are built on the Polygon network. Each network has its own community that is responsible for producing blocks.
- The execution layer is the Polygon Ethereum Virtual Machine that executes smart contracts.
What sets Polygon apart from the rest?Numerous DeFi tokens are competing to become the first interoperability solution to go live. Polygon aims to transform Ethereum into a multi-chain system, otherwise known as Internet of Blockchains. Other projects like Polkadot are said to launch their public parachains in the near future. Furthermore, with the Cosmos’ Stargate upgrade, the Inter Blockchain Communication Protocol was launched. However, in order for the protocol to become fully operational, it has to be enabled on the network.
Polygon is leading the race thus far since it integrates seamlessly with Ethereum and is a great solution for scalability issues.
AltCoinTrader to list MATIC TokenEven though the network was renamed from Matic to Polygon, it still uses the same utility token. MATIC token allows users to participate in network governance issues like voting on Polygon Improvement Proposals, staking and paying gas fees.
AltCoinTrader will be listing MATIC on South Africa’s favourite cryptocurrency exchange very soon. In the meantime, AltCoinTrader CEO Richard De Sousa explains how the DeFi community can benefit from the Polygon network in his latest YouTube video “Curve Tutorial: How to earn passive income with DeFi.”