Polygon: What it is and what you need to know about the popular crypto

By July 29, 2021Polygon
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Polygon aims to address problems facing Ethereum users, especially around scaling and environmental impacts.

Polygon: What it is and what you need to know about the crypto

Polygon (MATIC), previously known as Matic Network, is a platform built around the Ethereum blockchain, used for developing other decentralised apps.

It is described as the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development.

The core component is Polygon SDK which is a modular, flexible framework that supports building multiple types of applications.

Who created it

The technology was originally launched under the name ‘Matic Network’, back in 2017.

It was founded by a group of India-origin blockchain developers and consultants Sandeep Nailwal, Jayanti Kanani, and Anurag Arjun.

Jayanti Kanani is the current chief executive officer of Polygon.

Designed to solve Ethereum problems

Polygon aims to address problems facing Ethereum users.

Problems such as flaws and limitations in the technology, too much ‘top-down direction’ from its promoters, poor user experience and a high gas fee.

This has encouraged innovators, like those behind Polygon, to search for alternative technologies or methodologies to overcome these difficulties.

Who uses Polygon

The US-based Mark Cuban, the owner of NBA’s Dallas Mavericks team, is the most prominent user of Polygon.

Besides the Shark Tank entrepreneur, a large number of Ethereum participants also use Polygon.

Is it better than Bitcoin?

Polygon has some advantages over Bitcoin, which uses a proof of work technology that requires complex calculations and computing power.

The result is massive electricity consumption, hence Bitcoin isn't deemed environmentally friendly.

Polygon, however, uses proof of stake. This alternative method doesn’t have the same requirements for computing power and hence it promises a significant reduction in energy consumption compared to Bitcoin.

​​​​The other advantage over Bitcoin is that it works as a network of interconnected blockchains, which means there is no limitation to stick to a single blockchain.

How big is it and is it here to stay?

Polygon has a market capitalisation of more than US$6.49bn and, according to Coinmarketcap, is the 14th most valuable digital asset.

The crypto swelled to its all-time high of US$ 2.68 per token in mid-May. It is currently trading 34 per cent below its lifetime high.

Traders are a little sceptical about its future as its rivals are rushing to go live with their offerings and it means that the competition among interoperability solution providers will get tougher in future.

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