Did you know Ethereum’s gas limit was recently increased from 12 and a half million to 15 million? Ethereum is one of the most popular and secure DeFi hubs out there, but due to high demand, it suffers from high congestion that results in increased gas fees. The answer to these problems such as high fees, bottlenecks, and poor user experience is Polygon, which has increased over 9000% in its price this year.
Today I will give you a detailed overview of Polygon. First, let’s see what really caused the price to search this year.
Matic to Polygon
Polygon was previously known as Matic, but even after rebranding, the native token is still known as Matic. Many people believe that rebranding is pivotal for Polygon. But what they do not know is that it is an expansion. Consider it a Venn diagram where Matic is a smaller circle in a bigger one known as Polygon.
What is Polygon?
Polygon is known to be Ethereum’s internet of blockchain. It aims to provide a multi-chain ecosystem for blockchains that are compatible with Ethereum. It can be achieved by a simple easy to use a one-click framework that will enable users to launch their Ethereum compatible blockchain.
Polygon was founded in 2017 by a group of three friends in India. Later in 2019, its token Matic was distributed on Binance Launchpad’s initial exchange offering.
And they raised around $5.6 million. After years of hard work, Matic went live on mainnet in 2020 and gained a lot of traction because of Ethereum’s increasing transaction cost and a need for a better scalable solution.
Their vision is to create a world with unique blockchains that can freely exchange information and not create ideological and technological barriers. It provides an infrastructure with extreme scaling, modules of consensus, and governance that can be used to deploy and configure their blockchain. These blockchains can benefit from a Proof of Stake Sidechain that increases the speed of transactions and reduces the fees through a network of validators while working on the Ethereum main chain.
Polygon supports Stand-Alone Chains which are directly compatible with Ethereum and secured chains that leverage a network of validators through bootstrap.
So the question arises how is it unique compared to others? Polygon is a one-of-a-kind project that provides a series of tools to create high-performing and scalable decentralized applications and blockchains.
This unique ecosystem is the only scalable solution that supports Ethereum virtual machines while ensuring interoperability with its layer two solution and plasma chains. Polygon does not include just one two or three scaling solutions but four, including Proof of Stake Chain, Plasma Chains, ZK Rollups and Optimistic Rollups. It has a four-layer architecture that compromises Ethereum Layer, Security Layer, Polygon Network Layer, and Execution Layer.
Let’s get into what each of these layers offers.
The Ethereum layer includes a set of smart contracts on Ethereum, which handles transaction finality, communication, and staking.
With the Ethereum layer, the security layer also runs simultaneously and ensures chain security by providing validators as a service. These two layers are optional, but the other two layers, the Polygon Network Layer and Execution Layer, are mandatory.
The Polygon Network Layer, as the name suggests, was built on Polygon. This layer is responsible for consensus handling and blocks production. On the other hand, the Execution Layer is Polygon’s Ethereum virtual machine used to execute smart contracts. Polygon allows effective communication of chains launched on Polygon with the Ethereum main chain. Through arbitrary messaging, it ensures the exchange of value between diverse platforms and interoperable decentralized applications.
Polygon is the future where blockchains do not work in isolation but work without borders through an interconnected ecosystem. It aims to enable an open ecosystem used by users to interact seamlessly with several different products and services.
This will eradicate the problem of high fees, limited security, and less scalability. Recently they have launched a bridge that integrates five blockchains, including Polygon, Ethereum, Binance Smart Chain, Avalanche, and Moonbeam.
The Graph will also be supporting Layer 2 blockchains, including Polygon. The Graph and Polygon are coming together to unite the Web3 community. The developers on Polygon can build and publish sub-graphs. The co-founder of Polygon, Sandeep Nailwal, said The Graph and Polygon have a shared mission of building reliable public infrastructure for developers, validators, and end-users. And this partnership will further this mission and provide incredible value to the crypto and web3 community. On the same lines, director at The Graph Eva Beylin said a critical component of the good crypto experience is ensuring users aren’t paying exorbitant fees. As The Graph begins supporting Layer 2 like Polygon in addition to layer one blockchains building scalable DApps will become exponentially easier, and data will be accessible across chains. It’s not just one promising project starting on Polygon, but there are many more.
Formation five allows cross-chain, risky, parity, and smart farming to develop an automated market maker on this platform. This DeFi project will leverage Polygon scaling. With this project, the Matic holders will be able to earn double rewards just by providing liquidity.
Dallas Mavericks owner and shark tank investor Mark Cuban recently invested in Matic. We all know Mark is very much into cryptocurrency, as he went on The Ellen Show and talked about the future of cryptocurrency. Mainly Dogecoin Mavericks Merchandise also accepts BTC, Doge, and Ethereum as payment.
Mark is an active user and stated that Polygon is fast, works well, and most importantly, their user base is growing exponentially. He also added he is integrating Polygon into lazy.com, which he thinks will be very beneficial to creating a platform to extend NFTs and Persona Galleries.
The NFT market in the first quarter of 2021 generated more than 1.1 billion dollars in sales. That represents a 2000% growth since the fourth quarter of 2020.
aleph.im & Polygon
Aleph.im a cross-chain decentralized storage computing network is integrating with Polygon to create a marketplace and DApps for NFTs.
Sandeep Nailwal, the co-founder of Polygon, said we’re pleased to collaborate with aleph.im to supercharge the NFT ecosystem on Polygon further. Allowing NFT focus DApps to seamlessly use Aleph.im’s decentralized storage services for their NFT storage needs to be combined with Polygons high speed and low-cost transactions. This will be a great service for developers in the NFT space.
With this partnership, Polygon will hold Aleph.im’s decentralized databases such as file storage, decentralized identification framework computation, and protocols to remove any centralized components. With more than 1 million wallets, it processes over 5 million transactions per day, and currently, a total of 122 transactions have been processed on this network. Polygon is growing so fast that it had more than 75.000 users on the 17th of May. With each passing day, the demand for Polygon is increased, leading to a surge in the price by 9.000%. This shows that it is very popular among the people involved in blockchain and cryptocurrency. This is a good sign for Polygon because it means that people choose this network instead of going for bigger giants in the industry.
Polygon’s native token Matic has several different purposes in this ecosystem. It allows users to participate in the network governance through its voting system to security through staking and allows gas fee payment. According to the coin market cap, Matic is currently ranked at number 15 with a market capitalization of 11 billion dollars.
Out of 10 billion Matic, 6 billion are already circulating. The price of Matic started from $0,017 this year, and currently, it is at $1 with an all-time high of $2,68 on the 18th of May. Within the last 10-day period, Matic jumped by 42% even though Bitcoin jumped by 28% and Ethereum 25% during the same time. This continuous growth is very important for Polygon.
Polygon is one of the biggest gainers even though the crypto market crashed, and Matic actually resisted by achieving its new all-time high during the crypto market crash. Digital coin price predicted that Matic will break the $3 mark in 2021 and reach up to $4,28 at the end of this year. Other experts, including Gov Capital, are also bullish on Polygon as predicting it might reach $5,50 in a year. The crypto market is slowly on the way to recovery, but Polygon is having a good time.
So do we think the Polygon is a good investment?
Even during the crypto market crash, Polygon attracted investors, including Mark Cuban, due to its scalable solutions. Even though Bitcoin and Ethereum are still ruling the crypto space, investors are looking for new alternatives to invest, which have had the option to grow and are based on solving long-term problems. This increased popularity is crucial for Polygon because it will open more opportunities for this network and grow faster. This network is for everyone who wants to join in and take advantage of the current market situation. We have to keep an eye on Matic to see where it goes from here because the crypto market is very volatile. We cannot trust this market because of its inconsistency. Be cautious while buying and selling cryptocurrency as the price instantly changes, and never invest more than you cannot afford to lose. Well, that’s all for now. I hope you found this article helpful. Comment down below how many Matic do you currently hold, and write your thoughts regarding Polygon.