Back to all posts

Polygon (Matic Network) Overview: Scaling the Ethereum Blockchain

Polygon (previously Matic Network) developers have created a second-tier solution to solve scaling problems inherent to the Ethereum blockchain. While most DeFi projects focus on the abstract use of blockchains, the Polygon Network addresses specific problems related to Ethereum's inefficiencies. Ethereum supports a large community that needs to solve these problems, which will allow the Polygon Network platform to actively develop.

In this article, we will discuss what Polygon Network is and how it relates to the Matic platform. Let's dive a little deeper into its history and figure out how Matic Network has initially developed.

What is Matic Network and what is its role in the blockchain ecosystem?

Launched in 2017, at the dawn of DeFi, Matic Network introduced a layer-2 solution using sidechains (one of which is Plasma) designed to increase the extent of scalability of Ethereum. Thus, Layer-2 means the ability to scale the blockchain to the outside of it, that is, using sidechains that cannot increase the capacity of the blocks of the original blockchain but are able to use their own blocks to distribute the load on the network. These problems can also be solved within the blockchain, for example, using sharding, which is planned to be implemented in the updated Ethereum 2.0 network.

Read our articles about Ethereum 2.0 and its updates:

The Ethereum 2.0 launch is scheduled for November: what is known about the update release 

Ethereum 2.0 released a panel for the Medalla test network. ETH 2.0 stages 

The scalability of the Ethereum network is now one of the main problems associated with the DeFi industry. The fact is that the blockchain ecosystem is not yet able to scale enough to meet the growing demands of the community. This leads to congestion in the decentralized network and high transaction costs, making it almost impossible to regularly use decentralized applications for everyday tasks.

Thanks to sidechains, the Matic Network allows for cheap and fast transactions based on the Ethereum blockchain, as well as interacting with other blockchains. Blockchain developers, in turn, can create high-performance dApps built on top of the Matic Network blockchain. 

The global goal of the Matic team is to solve the problem of slow and costly transactions before the DeFi industry reaches mass adoption. The architecture allows the Matic Network to reach (in the future) a state of having millions of transactions on several blockchains fit into one block.

The second drawback of Ethereum is its unfriendly UX. Matic developers have presented a simplified interface that will improve user experience using decentralized platforms and DApps. The team also developed the Polygon (Matic Network) SDK, which will simplify the development of decentralized applications and make it more efficient.

The security of the platform and transactions effected by users is ensured by the Proof-of-Stake consensus mechanism. To protect and pay for transactions, developers have created their own MATIC token which network participants can stake or delegate.

Moving to Polygon: is the Internet of Blockchains Ready?

undefined

In February 2021, the Matic Network team rebranded and unveiled a new and improved Polygon Network which focuses on the fragmentation of the blockchain ecosystem using Ethereum as its main platform.

 

Polygon Network is a modular second-level security-as-a-service platform that provides frameworks for creating and interoperating Ethereum-compatible blockchain networks. Ethereum's current drawbacks (such as network congestion, low bandwidth, and high gas fees) create constraints for blockchain developers and hinder the development of the ecosystem, and hence the upcoming mass adoption.

 

Existing solutions that have introduced blockchains compatible with the Ethereum network are fragmented. This means that there is no single protocol that would ensure compatibility and reliable interoperability between blockchains. Therefore, the Polygon Network aims to create a single sovereign and scalable infrastructure for the development of, in fact, the Internet of blockchains.

 

This is what the ecosystem built around Ethereum will look like after the development of the Polygon network:

undefined

“Everyone” will interact with “everyone”, eliminating the problem of ecosystem fragmentation. As it evolves, Polygon will expand its set of modules to create secure, interoperable, and user-friendly networks that developers can deploy with one click.

 

Each blockchain in the Polygon ecosystem operates autonomously and ensures its internal security while interacting with other blockchains. Although the Polygon Network is going to create a single pool of validators, which implies a higher level of security and flexibility, but the autonomy of such networks will be worse.

 

Polygon Network Architecture

 

The protocol architecture contains 4 abstract and composite layers that can be used in various blockchains to solve a wide range of tasks. Let's take a quick look at each layer of the Polygon Network.

 

  • The Ethereum Layer is a set of Ethereum smart contracts that provide completeness, staking, and dispute resolution between blockchains.
  • The Security Layer is a conditional layer that manages the set of validators responsible for the security and verification of blockchains. It can work both in parallel with the Ethereum blockchain (meta-blockchain) and on it.
  • The Polygon Networks Layer is a collection of autonomous blockchains that provide interoperability, including block production and consensus between networks.
  • The Execution Layer - the layer responsible for the coordination and execution of transactions. The Execution Layer, in turn, consists of two sublayers: the execution environment (EVM) and the execution logic (Ethereum smart contracts).

undefined

Comparison of Polygon functionality with other solutions designed for scaling the Ethereum network

undefined

Polygon Tokenomics

 

Polygon (MATIC) is the main platform ERC-20 standard token, which is used for any operations within the protocol.

 

What functions the MATIC token performs:

 

  • Used to pay for gas on the platform;
  • Provides the security of the ecosystem and its individual networks on the principle of "security as a service" using validators and delegators;
  • Users trade and convert it to other tokens when using the platform.

 

Details of the MATIC token (as of 06 of May 2021)

 

Max Supply: 10 billion MATIC

Circulating Supply: 5.188 billion MATIC

Price: $ ~0.78

Market Cap: $ 4.048 billion 

 

Polygon Network Team and partners

 

The platform team consists of blockchain experts and consultants, including Hudson Jameson from the Ethereum Foundation, Anthony Sassano from EthHub, and Pete Kim from Coinbase. The Polygon Network is used by such well-known projects as the Polymarket prediction market, Aavegotchi, the crypto-collection game that uses Non-Fungible Tokens (NFT), Decentral Games, which is based on Decentraland, and the DeFi aggregator Easyfi.

undefined

Conclusion 

 

Among all the solutions created to scale the ecosystem built on Ethereum, the Polygon Network has gone the farthest, solving not only the problem of low bandwidth and high gas fees but also the problem of fragmentation of blockchains and protocols that do not interact well with each other. This explains the rapid growth of the Polygon Network infrastructure and the rising demand for its MATIC token.

Join Everstake on social networks and stay tuned on our channel!

Medium

Website

Twitter

Telegram

Facebook

Reddit

Previous post Next post
Help Ukraine with crypto - donateHelp Ukraine with crypto - donate