While the problems of Ethereum cannot be completely solved up to now, Layer 2 solutions are proving their outstanding advantages. To be more specific, Polygon is the most prominent Ethereum layer-2 solution with the explosive development of DEFI Ecosystem on Polygon platform. Let’s find out what Polygon and MATIC tokens are, and whether investing in Polygon is right through the following article of 5ROI Global.
1. What is Polygon (MATIC)?
First launched in September 2018, Polygon (formerly Matic Network) is a layer 2 scaling project on Ethereum’s blockchain network that helps to scale and improve existing problems on the Ethereum network such as: slow transaction speed, limited scalability, and extremely high fees for performing tasks.
In essence, Polygon token (MATIC) is a Layer 2 scaling solution. This token will calculate off-chain thanks to side chains, while still ensuring the safety of assets thanks to PoS – the authentication Decentralized network and Plasma framework. Thus it’s possible for Polygon to ensure both the security and safety of information and assets for users. On the other hand, there are also many people who expect that the platform can achieve the speed of processing digital assets almost immediately.
2. What problems does Polygon solve?
Ethereum is the largest blockchain development platform at the moment. However, it also has certain limitations:
- Poor scalability: When too many transactions are executed at the same time and the gas limit is exceeded, all transactions will be stopped and pending. This makes the network very susceptible to overload and congestion.
- Low transaction speed: Currently, Ethereum uses the POW (Proof of Work) mechanism with a transaction speed of only 30 transactions per second. This is considered a very slow transaction speed when compared to other blockchain platforms
- Gas fees are too high: The gas fee for 1 ethereum transaction is not a small problem for the users of this network. There was a time when the transaction fee was up to 1000$.
3. Highlights of Polygon (MATIC)
- Scalability: Polygon with very fast transactions, high security and low cost on MATIC sidechain.
- High Throughput: Up to 7000 TPS throughput on a single sidechain in the internal testnet. Simultaneously more chains were added to make it possible to scale horizontally.
- Security: Polygon operators are also the stakers of the PoS system.
- User Experience: Smooth user experience, native mobile apps support with Wallet Connect enabled SDK.
- Public sidechains: Polygon’s sidechain is public in nature, it supports multiple protocols, and is permissionless.
4. How does Polygon work?
4.1. Network Architecture
Polygon network architecture consists of 4 main layers: Ethereum layer, security layer, Polygon networks layer, and Execution layer.
- Ethereum layer: Polygon can maximize the security of the network using the Ethereum layer, one of the most secure blockchains. This layer plays a very important role in tasks about checkpointing, staking, message relaying, ….
- Security Layer: To further enhance the security of the network, polygon adds a Security Layer to its architecture. This layer takes care of providing the “validators as a service” functionality that allows Polygon Chains to use a set of validators that can periodically check the validity of any given network in the Polygon chains for a minimal fee. determined.
- Polygon networks layer: This is one of the must-have layers on Polygon, including a sovereign Blockchain network system, each Blockchain will take on certain functions such as transaction reconciliation, consensus or Block production.
- Execution Layer: Finally, the Execution Layer has an extremely important role, responsible for interpreting and executing transactions in Polygon Chains.
4.2. Polygon Chains
There are 2 main types of blockchains that polygon supports: Secured Chains and Stand-alone Networks
- Secured Chains: The blockchain uses a “security as a service” model to ensure users the highest level of security, but it reduces independence and flexibility. Currently, two secured chains are in operation: Polygon PoS and zk Rollups. Optimistic Rollups and Validum Chains are in development and coming soon
- Stand-alone Networks: This standalone network relies on its own security and uses either the network’s own Proof-of-Stake or a delegated Proof-Of-Stake. In contrast to Secured Chains, this type of network possesses high independence and flexibility, but the security is only relative.
5. Basic information about Polygon Token (MATIC)
5.1 Key metrics MATIC
- Token Name: Polygon.
- Ticker: MATIC.
- Blockchain: Ethereum, BSC, Polygon, Solana.
- Token Standard: ERC210.
- ETH Contract: 0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0
- BSC Contract: 0xcc42724c6683b7e57334c4e856f4c9965ed682bd
- Polygon Contract: 0x0000000000000000000000000000000000001010
- Solana Contract: C7NNPWuZCNjZBfW5p6JvGsR8pUdsRpEdP1ZAhnoDwj7h
- Token Type: Utility.
- Total Supply: 10,000,000,000 MATIC
5.2 Token Allocation
- Launchpad: 19% ~ 1,900,000,000 MATIC.
- Seed round: 2.09% ~ 209,000,000 MATIC.
- Early Supporter: 1.71% ~ 171,000,000 MATIC.
- Team: 16% ~ 1,600,000,000 MATIC.
- Advisors: 4% ~ 400,000,000 MATIC.
- Foundation: 21.86% ~ 2,186,000,000 MATIC.
- Ecosystem: 23.34% ~ 2,334,000,000 MATIC.
- Staking reward: 12% ~ 1,200,000,000 MATIC.
Participate in trading MATIC/USDT on 5ROI Global today at: https://www.5roi.com/exchange/MATIC/USDT
For investors, trading digital assets are both an opportunity and a challenge with outstanding profit potential. 5ROI Global only provides useful information for investors to grasp, and refer to and does not provide financial investment advice of any kind.
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