What Is Polygon (MATIC)?

Introduction

The long-awaited Ethereum scaling roadmap is finally maturing, and the contributions of the Polygon project cannot be overlooked.

Many may have heard of Cosmos and its vision for an "internet of blockchains," where information can be transmitted between different blockchains via the Inter-Blockchain Communication protocol (IBC). Polygon shares a similar vision but focuses on tailored solutions for the Ethereum ecosystem, aiming to enable developers to easily launch Ethereum-compatible scaling solutions or even standalone blockchains.

Initially known as the "MATIC Network," the project expanded from a single Layer 2 (L2) solution into a "network of networks," ultimately rebranding to "Polygon."

What is Polygon (MATIC)?

Polygon is a framework designed to create Ethereum-compatible blockchain networks and scaling solutions. It is more akin to a protocol rather than a single solution. One of the core products within this ecosystem is the Polygon SDK, which helps developers create Ethereum-compatible networks.

The Polygon network operates as a Proof of Stake (PoS) sidechain and is one of the first products launched in the ecosystem. A sidechain is essentially a parallel chain connected to another blockchain, offering many advantages, the most notable being increased transaction throughput and reduced costs. Users of the Polygon network can attest to its rapid transaction speeds and low costs compared to Ethereum. However, achieving such performance may require some compromises in certain areas, which will be discussed in detail later.

Polygon supports the Ethereum Virtual Machine (EVM), allowing existing applications to migrate here relatively easily. Users not only enjoy a similar experience to Ethereum but also benefit from the high throughput and low fees mentioned earlier.

So, what can users do with Polygon? The answer is clear: enjoy an Ethereum-like experience with lower costs and faster speeds. Polygon has deployed several popular decentralized finance (DeFi) DApps, such as Aave, 1INCH, Curve, and Sushi. Additionally, there are native applications unique to Polygon, like QuickSwap and Slingshot.

Under the leadership of founders Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, Polygon has grown significantly.

How Does Polygon Work?

The Polygon framework supports two main types of Ethereum-compatible networks: secure chains and independent chains. For example, "rollups" fall under secure chains, while sidechains are representative of independent chains.

Secure chains rely on the foundational infrastructure of the main chain to ensure security, thus requiring no separate security measures. In contrast, independent chains must secure themselves. Consequently, secure chains generally offer higher security levels, while independent chains provide greater flexibility to meet specific needs.

So, what about the Polygon network? Polygon sidechains are protected by a dedicated set of validators that must regularly submit checkpoints to Ethereum. This has led some to argue that sidechains are not "pure" Layer 2 solutions, as they must take responsibility for their own security rather than relying on Ethereum's security. This distinction is one of the most notable features, and we will explore the topic of rollups in detail later.

In the future, Polygon plans to support more types of scaling solutions, including Zero-Knowledge Rollups (ZK Rollups), Optimistic Rollups, and Validium chains. With the rollout of these scaling solutions, developers will gain more tools to innovate continuously and develop new applications and products. Furthermore, we anticipate that all solutions will be compatible with existing Ethereum tools and wallets, such as MetaMask.

Use Cases of the MATIC Token

Although the MATIC network has been rebranded, the name of the MATIC token remains unchanged. Users can utilize MATIC tokens to pay transaction fees within the network and participate in governance. To stake MATIC tokens, users can do so through Binance Earn or using the MATIC wallet developed by the Polygon team.

Polygon Bridge

The Polygon Bridge is the most convenient way to transfer funds from other blockchains to the Polygon sidechain. It is important to note that bridging transactions occur on the mainnet, so mainnet transaction fees still apply. However, once the bridging transaction is complete, users can enjoy the low fees and fast transaction experiences that Polygon offers. Additionally, some centralized exchanges (CEX) also provide direct withdrawal services to the Polygon network.

Comparison of Sidechains and Rollups

Overall, whether sidechains can be classified as Layer 2 solutions like rollups remains a topic of debate. To balance the various pros and cons in a multi-chain environment, it is essential to understand the differences between the two.

There are significant differences in trust assumptions, security, performance, and user and developer experiences. As a secure chain, rollups inherit most of Ethereum's security, making them one of the most promising Layer 2 scaling solutions.

However, the situation is different for other solutions like Polygon sidechains. This does not mean sidechains are inherently unsafe, but theoretically, it is still possible for malicious actors to collaborate and control the entire network. While we hope such scenarios do not occur, precautions should still be taken. Using sidechains indeed introduces trust issues, involving not only the validators of the network but also the bridges between the two chains.

Other pros and cons should also be carefully weighed. When using the Ethereum mainnet, although transaction fees are high and speeds are slower, security is the most reliable, with little concern over trust issues.

Using rollups results in lower fees, relatively high security, and shorter transaction times. Conversely, while fees on sidechains are only a fraction of rollups, security cannot be guaranteed.

Which solution is better? There is no simple answer to this question. Each solution has its specific use cases, complementing each other to form a highly valuable ecosystem.

For instance, a reputation system for a social media platform may require high transaction throughput at ultra-low fees, but it is not critical infrastructure, so the highest level of security may not be necessary. In this case, sacrificing some security for performance is justified.

On the other hand, if a country's treasury funds are stored on a blockchain, the highest level of security must be ensured at all costs, regardless of transaction speed.

Developers and project teams are continuously exploring how to make all built blocks adaptable to the global context. Scalability is undoubtedly a key focus, as various use cases across different industries require support for scaling solutions.

Conclusion

Polygon is a framework aimed at creating Ethereum-compatible blockchain scaling solutions. The Polygon network is a Proof of Stake (PoS) sidechain that has attracted many users due to its fast transactions, low costs, and compatibility with the Ethereum Virtual Machine (EVM).

In the future, Polygon aims to provide more scaling solutions, including Zero-Knowledge Rollups (ZK Rollups), Optimistic Rollups, and independent blockchains, to help build a more vibrant Layer 2 interconnected ecosystem for Ethereum.

Risk Warning

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