What Is MATIC? Polygon?
Polygon is a blockchain company based out of India. Formerly known as the MATIC network, this company aims to integrate multiple blockchains and make them Ethereum-compatible. It features in the top 15 of the world’s most popular cryptocurrencies at present.
Ethereum does not come without its set of challenges to tackle. Polygon can provide reliable solutions to resolve setbacks concerning exorbitant fee structures, limited TPS, and poor user experience.
The history of MATIC, its transformation into Polygon, and its features are all important concepts to examine. An in-depth analysis of its business model is present below.
History Of Polygon (MATIC)
The MATIC network was launched in October 2017 by four Indian software engineers. They are Anurag Arjun, Jaynti Kanani, Mihailo Bjelic, and Sandeep Nailwal. This startup’s headquarters is in Mumbai.
This blockchain went through a revamp in February 2021 and is now called Polygon. The primary intention behind this reconstruction is to help this blockchain attain global recognition, on par with the likes of Ethereum and Bitcoin.
Currently, the value of this cryptocurrency stands at ₹74.72. This coin experienced tremendous growth of >10,000% throughout the past year. Since March 2020, a boost of 163 times the initial value took place with regard to its market capitalization.
The Polygon Token – MATIC
MATIC is the native token of Polygon. This ERC-20 token runs on the Ethereum blockchain. The sidechains within this blockchain ecosystem also use MATIC tokens to carry out transactions.
Apart from transactions, this token also plays a key role in the encryption of this blockchain system.
The company’s rebranding paved the way to massive cost upsurges. Due to this scenario, the overall usage of the tokens increased.
At present, the circulation of this MATIC token is estimated to be around 5 billion. The total stockpile of tokens ranges up to 10 billion, according to statistics. The primary focus is on the accessibility of the coin. Both the crypto and fiat currencies are looking to integrate MATIC.
Companies In Collaboration With Polygon
Polygon collaborates with multiple leading industry giants and solves their pain points with the help of its interchain scalability feature. Some of the notable names include:
- Trace Network
- Google Cloud’s BigQuery
- Mavericks (Backed by Mark Cuban)
The main objective behind the Polygon and Trace collaboration is to introduce NFTs (Non-Fungible Tokens) to users. Retailers who own luxury brands are the main beneficiary of this feature.
Some of the crucial elements that retailers require are the traceability of the supply chain and liquidity aggregation. This collaboration will enable them to incorporate all of these provisions successfully.
Google Cloud’s BigQuery
The assets of Polygon were integrated with BigQuery. The analysis of metrics for different parameters like the popularity of tokens, applications, and contracts has been a long-standing requirement in this domain.
The collaboration provided a solution to this requirement. A bridge network similar to the Ethereum main net with a much more affordable price point is here!
Mark Cuban’s Contribution
The high TPS (Transaction-Per-Second) of Polygon caught the attention of Mark Cuban, who advocates the usage of cryptocurrency immensely. This incident led to the unification of Polygon with Mavericks. Mavericks is the official basketball gear brand of Mark Cuban.
After the entry of Mark Cuban, Polygon’s worth and overall business experienced major growth. Polygon will likely undergo increased adoptions in the coming days because of this.
Infosys was facing a requirement of cross operations to inculcate disruptive technology in its client interactions. Therefore, the M-Setu collaboration proved to be of immense benefit. It acted as an open-source bridge and transformed the insurance industry entirely!
Decentralized finance is gradually becoming a highly essential topic. Hence, the integration of Polygon with Coinbase comes as no surprise! Coinbase recently added Polygon to its wallet, intending to make decentralized finance and NFTs accessible to a wider section of people.
Polygon Business Model
The business model of Polygon can be described as a four-strata structure in brief. This system comprises the following sections:
- Ethereum Layer
- Security Layer
- Polygon Networks Layer
- Execution Layer
The Ethereum and the security layers are optional. However, most models prefer to incorporate them nonetheless.
All these layers work in tandem to keep both the main and side chains running without any hassles and disruptions. The Polygon networks layer is the core of the entire system. It hosts the entire blockchain network and the ecosystem.
The different components involved in this side chain include structure, client nodes, tokens, validator nodes, etc. The exchange clusters are present in the main chain. This feature is the only notable difference when it is compared with other counterparts.
The execution layer takes care of the smart contracts. A noteworthy aspect that you can observe at this juncture is the ease of communication between the main and sidechains. Therefore, you can enable communication between different platforms.
The diverse technological aspects involved in the functioning of Polygon are not to be missed. They include the following technical components.
The MATIC POS chain is an Ethereum side chain. It adds the proof-of-stake (POS) security layer to the blockchain.
The movement of assets between the main chain and the side chain occurs through a Plasma bridge system. Plasma is the scaling technology that is incorporated here.
ZK rollups and optimistic rollups are the two types of rollups that are majorly implemented in the functioning of Polygon. It enables the maintenance of records and smooth, fraud-proof transactions of data.
Summing It Up
The Polygon MATIC side chain is a state-of-the-art crypto chain that is rapidly gaining prominence at a global level. Its different uses and the working of its business model showcases its importance and the potential it holds.
This crypto chain will gain increased importance in the coming days, thanks to its collaboration with several industry leaders. The different benefits it offers and the value it serves to a diverse client base are indeed noteworthy.
Polygon is likely to revolutionize the sector of decentralized finance and rise to a high degree of prominence!