Wednesday, June 7, 2023

Polygon (MATIC) – Promising Layer 2

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Polygon is a platform for building scaling solutions and Ethereum-compatible blockchain networks. This is why the Polygon SDK, which enables developers to make these Ethereum-compatible networks, is one of the ecosystem’s key services.

The Polygon Network, a Proof of Stake (PoS) sidechain and one of the initial live products in the Polygon ecosystem, may have come to your attention, though. In essence, a sidechain is a parallel chain that is linked to another blockchain.

The two main advantages of sidechains are high transaction throughput and minimal fees. If you’ve ever used the Polygon Network, you know how much faster and less expensive it is than Ethereum. There are compromises to be made for this performance, though.

Since Polygon supports the Ethereum Virtual Machine (EVM), it is relatively simple to transfer existing applications to it. This might provide users with a similar experience as Ethereum, but with the high throughput and cheap costs indicated earlier.

How does Polygon work?

Secured chains and stand-alone chains are the two main categories of Ethereum-compatible networks that the Polygon framework enables. A sidechain serves as an example of a stand-alone chain, whereas a rollup serves as an example of a secured chain.

Secured chains don’t need to establish their security architecture because they rely on the technology of the chain to which they are connected. Independent chains, on the other hand, are responsible for their security. As a result, secured chains typically provide a better level of security, whereas standalone chains provide greater flexibility for a variety of needs.

How does the Polygon Network fare? The Polygon sidechain is protected by a separate group of validators (validator pool), and it occasionally needs to send checkpoints to Ethereum. The reason why some claim that sidechains are not a “pure” Layer 2 solution is because of this. They must be responsible for their security rather than relying on Ethereum.

The Polygon platform plans to offer further scaling options in the future, such as Validum chains, optimistic rollups, and zero-knowledge (zk) rollups. Developers will have greater resources once more of these scaling technologies are available to create original programs, services, and goods. Additionally, we can anticipate that all of these will work with already-available Ethereum tools and wallets, such MetaMask.

Polygon Bridge

The easiest way to transfer money from one blockchain network to the Polygon sidechain is through the Polygon Bridge. The bridging transaction is on the mainnet, thus you will still be responsible for paying transaction costs for that network.

But after it’s done, you may take advantage of Polygon’s affordable prices and quick transactions. The Polygon Network can also be withdrawn directly from various centralized exchanges (CEX).

The benefits of Polygon for Ethereum

Ethereum is not in competition with Polygon. It is dependent on Ethereum and vice versa. The goal of Polygon is to use the Polygon network to build infrastructure that can support the widespread adoption of Ethereum. As a result, Polygon depends on Ethereum more than Ethereum does on Polygon. Given that Polygon is based on its blockchain, this is expected.

The primary drawback is the possibility that moving to Polygon for speed may diminish the value that Ethereum has achieved. In some regions, value dilution might even prevent Ethereum from adding more direct users.

To illustrate, Polygon enhances Ethereum, which encourages more users to use the Ethereum network. The value of the Ethereum blockchain will increase as more users freely lock their money there, notwithstanding the possibility of stealing the total value locked (TVL) from Ethereum.

Why is Polygon so unique?

What distinguishes Polygon from its layer 2 rivals? The MATIC token from Polygon is the only one that may be staked on the Polygon blockchain. Users who participate in staking might receive interest payments each year in exchange for validating transactions on the blockchain.

Developers, small businesses, and regular customers can all benefit from Polygon’s solutions. The main goal of Polygon is to build an IoT (Internet of Things) on the Ethereum blockchain. The project seeks to increase Ethereum’s user base to one billion without compromising security or decentralization.

The method used by Polygon distinguishes it from other L2 solutions. Developers can choose from a variety of Polygon’s services on a single network. This strategy gives developers more flexibility and control when selecting the scaling solution that is ideal for their application.

A developer on Polygon has the option of using optimistic rollups or zk-rollups. Instead, they might choose to adopt Polygon Avail, a very safe data availability blockchain that can be used for off-chain scaling solutions such as sidechains and independent chains.

Bottom line

Polygon is a framework for developing Ethereum-compatible scaling solutions for blockchains. Due to its quick, inexpensive transactions and EVM compatibility, the Proof of Stake (PoS) sidechain known as the Polygon Network has attracted a respectable amount of popularity.

Future scalability solutions from Polygon will include stand-alone blockchains, optimistic rollups, and zk rollups, which should support the development of an enhanced Layer 2 ecosystem for Ethereum.

#eth20 #Ethereum #EPNS #webmastermind #cryptoanshu

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