Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications.
To learn more about this project, check out our deep dive of Polygon Matic.
Using Polygon, one can create optimistic rollup chains, ZK rollup chains, stand alone chains or any other kind of infra required by the developer.
Polygon effectively transforms Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche etc. with the advantages of Ethereum’s security, vibrant ecosystem and openness.
The $MATIC token will continue to exist and will play an increasingly important role, securing the system and enabling governance.
Polygon (formerly Matic Network) is a Layer 2 scaling solution backed by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by resolving the problems of scalability on many blockchains.
Polygon (MATIC) is an ERC-20 token, which means it can be stored in any Ethereum-compatible wallet. Therefore, any hardware wallet that supports Ethereum can also support Polygon. Here are some examples of hardware wallets that can be used to store Polygon:
It is important to note that when using a hardware wallet, you should always make sure to purchase the device from a reputable source and follow the manufacturer’s instructions carefully to ensure the security of your funds.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
There are many software wallets that support Polygon (MATIC) tokens. Here are some popular examples:
MetaMask: MetaMask is popular browser extension wallet that allows users to access the Ethereum blockchain and all ERC-20 tokens, including Polygon.
MyEtherWallet (MEW): MEW is a free, open-source, client-side interface for creating and managing Ethereum wallets. Users can access their Polygon tokens by connecting to the Polygon network using the custom RPC settings in MEW.
Trust Wallet: Trust Wallet is a mobile wallet that supports a wide range of cryptocurrencies, including Polygon. It is available on both iOS and Android devices.
Coinbase Wallet: Coinbase Wallet is a non-custodial wallet that allows users to store and manage their own private keys. It supports Polygon (MATIC) as well as many other cryptocurrencies.
Exodus Wallet: Exodus is a desktop and mobile wallet that supports over 100 cryptocurrencies, including Polygon.
It is important to note that when using a software wallet, you should always make sure to download it from a reputable source and take necessary security measures such as enabling two-factor authentication and keeping your seed phrase in a safe place.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Polygon coin software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . Both wallets are very intuitive. Exodus is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. Edge on the other hand is only available on mobile, with both iOS and Android apps available. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Once you decide on an exchange, open an account and buy your Polygon . Make sure to withdraw the Polygon from the exchange to your personal wallet.Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
Polygon (formerly Matic Network) was launched in October 2017. Polygon was co-founded by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, two experienced blockchain developers and a business consultant.
Before moving to its network in 2019, the Polygon team was a huge contributor in the Ethereum ecosystem. The team worked on implementing the Plasma MVP, the WalletConnect protocol and the widely-used Dagger event notification engine on Ethereum.
The team included co-founder of Polygon, Jaynti Kanani. Jaynti, a full-stack developer and blockchain engineer currently serves as the CEO of Polygon.
Jaynti played an integral role in implementing Web3, Plasma and the WalletConnect protocol on Ethereum. Prior to his blockchain involvement, Jaynti worked as a data scientist with Housing.com.
Co-founder and chief operations officer of Polygon, Sandeep Nailwal is a blockchain programmer and entrepreneur. Before jointly starting Polygon (formerly Matic), Sandeep had served as the CEO of Scopeweaver, and the chief technical officer of Welspun Group.
Anurag Arjun is the only non-programming co-founder of Polygon. As a product manager, he has had stints with IRIS Business, SNL Financial, Dexter Consultancy and Cognizant Technologies.
Polygon is a unique blockchain project in several ways:
High scalability: One of the main features that sets Polygon apart is its high scalability. The network is designed to process a high number of transactions per second, which makes it ideal for decentralized applications (dApps) that require fast and seamless user experiences. Polygon achieves this high scalability by utilizing a Layer 2 scaling solution that builds on top of the Ethereum network.
Interoperability: Polygon is interoperable with other blockchain networks, which means that it can connect and communicate with other blockchains, allowing for seamless asset transfers and interoperability between different decentralized applications. This feature enables developers to build dApps that can interact with various blockchain networks without the need for additional intermediaries.
Low transaction costs: Compared to other blockchain networks, Polygon’s transaction fees are relatively low, making it an attractive option for users who want to transact with cryptocurrencies without incurring high fees.
Ethereum compatibility: As an Ethereum-compatible network, Polygon is designed to work seamlessly with the Ethereum blockchain, allowing developers to port their existing Ethereum dApps onto the Polygon network with ease. This compatibility has made Polygon an attractive choice for developers looking to build decentralized applications with high scalability and low transaction costs.
Community-driven: Polygon has a strong and supportive community of developers and users who are actively working to improve the network and promote its adoption. The community is also responsible for governance of the network, with token holders having a say in the decision-making process through a decentralized governance system.
Polygon announced the much-anticipated London Hard Fork and Ethereum Improvement Proposal (EIP) 1559 upgrade will go live on the mainnet on Jan. 18, 2022. The upgrade will completely change the way the fee mechanism works on the Ethereum network — it eliminates first-price auction as the main fee calculation mechanism and instead uses a base fee that is burned, instead of sent to miners. Although it does not lower transaction fees, it makes it more stable, allowing users to estimate costs better and reduce overpayment.
However, as MATIC tokens are burned as base fees — and MATIC has a fixed supply of 10 billion tokens — it will have a deflationary effect on the digital asset. Polygon’s core team projected an annual burn of MATIC amounting to 0.27% of the token’s total supply — around 27 million tokens. This deflationary pressure will most likely benefit validators and delegators the most, as rewards for processing transactions on Polygon are denominated in MATIC. Furthermore, base fee will increase automatically once the block is filled up, resulting in fewer spam transactions and less network congestion. Ethereum mainnet’s London Hard Fork went live on Aug. 5, 2021.
Polygon is one of the multiple blockchains achieving carbon neutrality. That initiative is part of Polygon’s Green Manifesto, which aims to focus on sustainable development for blockchain. Polygon committed $20 million for various community initiatives to utilize Web3 technology to build a sustainable future for all. That includes focusing on new solutions for on-chain carbon credit retirement.
Through a partnership with KlimaDAO, Polygon bought $400,000 worth of carbon credits. Those credits represent nearly 90,000 tonnes of CO2 emissions. The tokens were retired through KlimaDAO’s offset aggregator tool, with BCT and MCO2 carbon credits created from offsets certified under the Verified Carbon Standard.
KlimaDAO is a decentralized collective of environmentalists, entrepreneurs, and developers looking to modernize the carbon market through on-chain technology.
Furthermore, KlimaDAO and Offsetra analyzed Polygon’s network energy footprint to determine emission hotspots and figure out a compelling mitigation approach. That includes looking at emissions from staking node hardware, the energy consumption of staking operations and more,
Becoming carbon neutral is the first step for Polygon toward sustainability. Even though the network relies on proof-of-stake, far more energy-efficient than proof-of-work, the network continues to impact the environment. That applies to both Polygon-only activity and the native smart contracts interacting with the Ethereum blockchain.
Polygon and KlimaDAO have also retired carbon credits from various network-native projects, including Bull Run Forest Conservation Project, the Ghani Solar Power Project, Moss.Earth and the wind power project at Jaibhim, India.
MATIC tokens are released on a monthly basis. MATIC currently has a circulating supply of 4,877,830,774 MATIC tokens and a max supply of 10,000,000,000 MATIC tokens.
At its initial private sale in 2017, 3.8 percent of MATIC’s max supply was issued. In the April 2019 launchpad sale, another 19 percent of the total supply was sold. The MATIC price was $0.00263 per token, and $5 million was generated.
The remaining MATIC tokens are distributed as follows:
According to the release schedule, all the tokens will be released by December 2022.
Polygon is secured through a consensus mechanism called Proof of Stake (PoS). The network uses a modified version of the Ethereum PoS consensus algorithm, called the “Polygon PoS Chain”.
In this consensus mechanism, network validators, also known as “stakers”, are required to hold a certain amount of Polygon’s native token, MATIC, as a security deposit to participate in the network. The validators are then responsible for verifying transactions and adding new blocks to the blockchain.
Validators are incentivized to act honestly through the distribution of MATIC token rewards for their efforts, as well as through the risk of losing their security deposit if they are found to be malicious or negligent.
In addition to PoS, Polygon also implements other security measures such as regular security audits, bug bounty programs, and partnerships with leading security firms to ensure the overall security of the network.