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Polygon Network on Blockchain Technology

polygon network on blockchain technology

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Ethereum is the second most popular cryptocurrency currently being traded. Its popularity and traceability are only limited by the slow speeds and high transaction charges. The high number of users who regularly conduct transactions using this cryptocurrency reduces platform scalability.

However, the Polygon Network or Polygon MATIC provides a solution that can overcome these problems and improve the scalability of Ethereum.

What is the Polygon Network?

The Polygon Network is a layer-2 blockchain platform. It combines blockchain technology and the Ethereum ecosystem into a multi-chain network. The network allows multiple blockchains outside the Ethereum ecosystem to communicate with each other. 

Ethereum’s blockchain development platform has poor UX and no sovereignty, which means it is not customizable and is dependent on governance. The Polygon Network was founded by an Indian blockchain developer and aims to provide solutions to these problems. 

Polygon architecture is highly customizable, upgradeable, and scalable. It is considered as an “add-on” layer to Ethereum’s base layer and does not change the original blockchain layer. The network retains the platform’s liquidity and security while boosting scalability and speed. 

How Does Polygon Work?

As mentioned previously, the Ethereum platform is clogged by a high number of users. Polygon aims to unclog this platform in an efficient and cost-effective method. The core of the Polygon Network is the Polygon SDK (Software Development Kit). 

The Polygon SDK can be used to create decentralized applications, also known as a side chain or custom network, and then connect them to Ethereum’s main blockchain. Since Polygon aims to provide layer-1 solutions, it allows developers to test their blockchain ledger validity before they are added to the main blockchain. 

Layer-2 solutions are becoming increasingly important in the acceptance of cryptocurrency. Polygon’s biggest selling point is that it allows developers’ blockchains to cooperate with other existing blockchains without extensive work on integration.

What is the MATIC Token?

Polygon Proof of Stake(PoS) is a token called MATIC. The MATIC token is the base resource in the network and has two primary functions:

  1. For transactions: The MATIC token can be used to pay transaction fees on 400+ Dapps running on the Polygon Network. 
  2. For safeguarding: Validators and delegators in the Polygon Network secure it by staking their MATIC token in the staking contract. These contracts ensure the consent of each individual using the network and highlight the rules of the network.

There are a total of 10 billion MATIC Tokens. However, only 4.877 billion (48.7%) of those are in circulation at the moment. 

Main Features of Polygon Network

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The main features of Polygon are listed below.

  • Ethereum Compatibility

The main feature of the Polygon Network is that it is compatible with Ethereum. Ethereum has an established tech stack, developer tools, languages, and standards on the platform. Polygon uses these standards to help developers create Ethereum compatible blockchains.

  • Highly Scalable

Polygon can be used for unlimited crypto infrastructure development. The network has scalable consensus algorithms that can be used to upscale the architecture of Ethereum.

  • Highly Secure

The network’s validators provide security-as-a-services (SaaS). In addition, it is also governed by teams or validators from Ethereum.

  • Sovereignty

The Polygon Network has a customizable tech stack. Its sovereign governance means users can buy Polygon safely. The sovereignty is maintained in the form of MATIC Token.

  • Interoperability

The platform provides support for sending frictionless blockchain to blockchain messages. The messages can be tokens, contract notes, contract calls, etc.

  • User Experience

The network is popular for having no-gas transactions, i.e., it does not charge users high transaction fees. It provides users instant confirmation on transactions.

  • Developer Experience

The Polygon Network is built by developers for other developers. As a result, it provides high-quality developer experience with no requirement of protocol knowledge, tokens, fees, or deposits.

  • Modularity

The network is highly customizable and can be upgraded and extended, depending upon community collaboration.

Effect of Polygon Network on Blockchain and Decentralized Finances (DeFi)

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OpenSea is a peer-to-peer marketplace for cryptocurrencies. OpenSea integration with polygon was announced in October 2021. The integration allows a polygon NFT minter to sell their tokens at fixed prices on the OpenSea marketplace. 

The marketplace also provides data on which polygon project is currently ranking the highest. The cost of selling NFT on OpenSea is decided by the minter. 

  • Aavegotchi

Aavegotchi is a gaming platform and a marketplace that allows users to sell MATIC polygon NFT and NFT Aavegotchis. These are usually developed by playing the game and generating interest from other users. 

Aavegotchi offers collateral stakes, decentralized autonomous organizations (DAO), dynamic rarity, rarity farming, and smart contract implementations to blockchain gamers. The platform uses decentralized finances and gaming to create NFTs.

  • Colexion

Colexion is Asia’s most popular marketplace for cryptocurrency. The integration was announced in late October 2021 and allows Indian users to buy and sell NFT on the polygon. Colexion is popularly known as the best polygon NFT marketplace for sports, entertainment, art, and lifestyle tokens.

If you’re looking to understand how eCommerce NFT selling will affect the gaming industry, Waypoint is the expert. You can look at our ongoing eCommerce projects to learn more.

FAQs

  1. How to buy MATIC?

Polygon crypto is known as MATIC token. A MATIC token can be bought through three sources:

  • Centralized exchanges: Centralized exchangers like Bitfinex, Coinbase, Binance, etc., also provide MATIC utility tokens.
  • Decentralized exchanges: It is possible to get MATIC tokens from decentralized exchangers like Quickswap, DFYN, and Sushiswap.
  • Direct deposits and withdrawals: Direct deposits and withdrawals to Polygon Network can be completed through AscendEX, MXC, OKEx, and many more.
  1. Who runs the Polygon Network?

The Polygon Network is managed by Polygon Technology and its four founders: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. A board of data science experts, ethereum experts, and software developers also help in managing the network.

  1. How to create an NFT?

Users can start creating NFT on OpenSea using Polygon once they have created an account. However, before creating NFT, they must connect their account to a MetaMask wallet.

  1. How to sell NFT on e-shop? How expensive is it to sell NFT?

NFT can only be sold on online marketplaces. The steps to follow for selling an NFT are as follows:

  1. Create a digital wallet for your cryptocurrency
  2. Connect your wallet to the NFT marketplace platform
  3. Upload the file containing the NFT
  4. Set up an auction for the NFT
  5. Pay the transaction fees

The transaction fee depends upon the marketplace chosen. Most marketplaces charge 2.5% transaction fees to the seller.

  1. How do I sell NFT on Polygon?

Users can sell the Mint NFT on Polygon using the OpenSea marketplace. To sell an item on OpenSea, users first have to create a collection by “supplying” a semi-fungible item. 

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