Polygon Coin MATIC
Polygon coin, also known as MATIC in the cryptocurrency market, has increased in price by 9% in the last 24 hours. According to CoinMarketCap, which monitors cryptocurrency prices, over the same period of time, the value of cryptocurrencies increases while the value of all other cryptocurrencies decreases.
MATIC is the cryptocurrency that will power the Polygon Network. It provides a framework for building and communicating a blockchain powered by Ethereum technology (transaction records).
Based on market capitalization (the total value of the circulating supply of cryptocurrencies), the cryptocurrency Ethereum is currently the second-largest cryptocurrency. Based on market capitalization, Polygon is currently ranked 14th among the best cryptocurrencies.
The polygon price reached around $2.46 on Wednesday morning. This price is above the record high of $2.46 it hit on Wednesday morning when it reached $2.18. Its price went up by about 25% in just six hours. In the past 24 hours, its transaction volume has increased by about 122%.
With the growing popularity of NFTs and decentralized finance, the largest blockchain network has become crowded. This leads to higher network costs. Token exchanges on decentralized platforms such as Uniswap soared to over $1,000 during the peak usage period. This is a far cry from the commission-free brokers that retail traders are used to.
Decentralized application developers on the Ethereum network are always looking for other ways to expand their projects. Polygons are probably the answer they’re looking for.
What is Polygon?
Polygon is a protocol that allows you to connect to a blockchain network compatible with Ethereum. Developers can use open source technology to rapidly deploy networks or side chains, which can choose to take advantage of the security of the Ethereum network through smart contracts.
Polygon, formerly known as Matic Network, is a framework for building interconnected blockchain networks. This side solution solves some of Ethereum’s biggest limitations, including throughput, poor user experience (high speed and late transactions), and a lack of community governance.
Polygon is not a simple scaling solution like Matic Network (which uses a technology called Plasma for off-chain transactions before the completion of the Ethereum mainchain), but a complete platform designed to allow the launch of an interoperable blockchain.
Polygon allows developers to build pre-built blockchain networks with the attributes they need. Pre-built blockchain networks can be customized using more and more modules. This allows developers to create sovereign blockchains with more specific functionality.
How Polygon Works?
Checkpoints are implemented by the polygon checker of the Ethereum main chain at regular intervals. This allows any side transaction disputes to be resolved through cryptographic proof.
The agreement allows users to transfer tokens via Matic without third-party risks or market liquidity restrictions. All tokens leaving Ethereum are locked and represent the new pegged tokens on Matic (1:1). When the user returns to the Ethereum network, the associated tokens will be copied.
The operation of Polygon depends on the security of the Ethereum network. However, the most important thing is its ability to expand and maintain security. Polygon is already using the proof-of-stake mechanism in Ethereum 2.0. This is in contrast to the Proof of Work consensus protocol currently used by Ethereum. In terms of computing resources, it is expensive.
In addition to the famous Heimdall architecture developed by Cosmos, Polygon also uses a proof-of-stake consensus mechanism. Heimdall uses a different method than the traditional Proof of Work blockchain. Heimdall is not any participant (miner) who can verify transactions and generate blocks from them, but rather randomly selects block producers from proof-of-stake validators.
This dual consensus architecture allows for decentralization while allowing for high transaction throughput. This leads to the scalability of the network. The network’s test network saw up to 7,000 transactions per minute (TPS) using a single side chain. This is much higher than the 14 TPS transfer rate of the current Ethernet method.
How to Buy Polygon?
Polygon can be purchased on major exchanges such as Binance and Coinbase. Polygon can be purchased from decentralized exchanges, such as Uniswap with Wrapped Ethereum.
As with all cryptocurrency investments, your investment should not exceed the losses you can afford. Even though the cryptocurrency market is on the verge of becoming mainstream, there are still many unknown and unresolved risks.
Polygon is a second layer technology like Polygon. It’s a great way to participate in the expanding field of decentralized finance, even if you don’t have to pay miners excessive transaction fees, despite network congestion.
Inventors should pay close attention to the Polygon Network project that includes smart contracts. They should also check for relevant growth. As cryptocurrency traders continue to search for scalable solutions, investors need to be aware of competing Layer 2 solutions, such as Polkadot Smart Chain and Binance Smart Chain.