Although the market for cryptocurrencies as a whole is seeing a decline at the moment, one alternative cryptocurrency known as MATIC coin (also known by its more recent moniker, Polygon) has been doing very well. 

 

This is most likely attributable to the widespread cooperation and acceptance of this Ethereum-based blockchain technology by a great number of service providers. Its broad adoption has caused a frenzy in the crypto market. So, what exactly is a MATIC coin? 

 

Let's have a peek.

What Is the MATIC?

The MATIC token is an alternative cryptocurrency built on the Ethereum platform that enables transactions on the Polygon network (originally called the Matic Network). 

 

It provides a scalable and sustainable answer to problems such as high transaction fees and sluggish transaction speeds. Because of the consistently large amount of transactions that occur on the Ethereum blockchain, the network eventually gets congested, which leads to decreased speed and increased costs.

 

As a result, Polygon intends to enhance the quality of the user experience by delivering a scaling solution for Layer 2 (L2) to the Ethereum network.

 

A scaled version of the Ethereum ecosystem is made possible by the use of smart contracts, which allow for the exchange of Ethereum for MATIC currencies. Matic Network was rebranded as Polygon in February 2021 and reintroduced to the market as a platform for the development of linked blockchain networks that were founded on Ethereum.

How Does Polygon Function?

Polygon's platform was first introduced in 2017 under the name Matic Network. It assists in the construction of linked blockchain networks. Sidechaining is used by Polygon Network in order to make it more scalable. The design of Ethereum's mainchain is paralleled by the sidechain's operation.

 

When it is necessary to do so, assets move back and forth between the mainchain and the sidechain. This transmission is made possible with the assistance of the plasma chains that are used in the Polygon network.

 

When it was first introduced to the public, the Matic Network functioned primarily as a scaling option for apps that were built on Ethereum. It was renamed Polygon in 2021, indicating that it had evolved into something much more than that, and it now makes it possible for developers to construct blockchain networks that are uniquely tailored to their needs while still providing interoperability and scalability.

Architecture Based on Polygon

The mainchain of Polygon is really a sidechain that employs a proof of stake (PoS) method to determine who may mine or verify a block. 

 

In the proof of work (PoW) consensus, each competing node makes an effort to solve a difficult issue, and the winner is the miner who has the most costly hardware. This approach stands in stark contrast to the PoW consensus.

 

Polygon's network benefits from greater scalability and security thanks to the use of the Heimdall architecture in the selection of block producers. The network's Proof of Stake validators participate in a lottery to choose who will create blocks. Because of this, enhanced security and scalability are provided, since the pool of validators is rather wide.

 

Polygon validators that operate in parallel with the Ethereum mainchain continually validate the transactions that take place inside the Polygon ecosystem at certain checkpoints. This helps preserve consistency and provides an answer to any issue that may come up in the future.

 

Apart from this, Polygon has its own layer known as the Polygon Network, which is necessary for the manufacturing of blocks and the reaching of a local consensus inside its blockchain ecosystem. Polygon is able to successfully construct smart contracts with the assistance of the Ethereum virtual machine (EVM).

ZK-Rollups

ZK-rollups are used by Polygon. They are transactions that aggregate a significant number of off-chain transfers into a single operation. This method contributes to the anonymity of transactions, making it possible to protect consumers' privacy.

 

A proof known as zero-knowledge proof ensures that no confidential information is divulged, despite the fact that validation and consensus are both accessible.

 

Instead, the network may decide to make use of optimistic rollups, which provide for transactions that are both easier and quicker to complete. 

 

Optimistic rollups are a solution for Layer 2 scalability that runs smart contracts on the network and has an interface that is appealing to users.

 

The combination of all of these approaches results in Polygon having an architecture that is both distributed and safe. Because of this, it is able to quickly exceed the current throughput of 14 transactions per second (TPS) that the Ethereum network is capable of processing.

 

Because of this enhanced scalability, transactions are now a far more affordable commodity than they are on Ethereum's overloaded network, where they presently are.

Advantages of Using Polygon in Comparison to Other Blockchains

In spite of the fact that there are a great number of scaling solutions based on Ethereum's network, Polygon has its very own unique set of benefits. 

 

Although some of Polygon's rivals have been unable to properly implement features like Plasma, ZK-rollups, Polygon Edge, and Polygon Supernets, Polygon has been able to successfully utilize these features.

 

Polygon is able to eliminate bottlenecks with the assistance of Heimdall architecture, which makes the company more scalable. Polygon Edge and Polygon Supernets make it possible for developers to swiftly construct modular blockchains that are adapted to certain use cases while maintaining a high level of data safety.

Security

The many checkpoints that are included all the way through the life cycle of a transaction in Polygon provide it with an exceptionally high level of security. Also, there are procedures for reaching a consensus at the local level. 

 

Polygon provides an additional layer of protection for the architecture, and the combination of PoS and Heimdall architecture makes it far more secure than its rivals.

Customization

Polygon is extremely modifiable, which enables developers skilled in the creation of Ethereum-based applications to utilize the programming language of their choosing. There is no need to use the extra Ethereum layer or the security layer. 

 

So, solution providers that use Polygon have the unrestricted freedom to modify it in accordance with their own requirements.

Optimization of the Ethereum Network

Polygon is a decentralized application that has been built to use the Ethereum network to its full potential. The decentralization makes it possible for the Ethereum blockchain to process one thousand times more transactions than it could before.

Hard Fork of a Polygon

A mainnet hard fork upgrade has been suggested to be implemented by Polygon in order to cut down on the amount of time needed for the completion of block transactions and gas spikes.

 

The Polygon hard fork, also known as the V0.3.1 Hardfork, is scheduled to take place on January 17, 2023. The improvement consists of two separate yet interconnected elements.

 

The first step is to bring down the frequency of gas price rises. Gas spikes are extraordinary price increases in gas costs that occur as a result of two factors: the EIP1559 upgrade and Polygon's conversion to PoS, which led to quicker block times. 

 

These two events caused faster block times, which in turn led to higher gas prices. The Polygon BaseFeeChangeDenominator is going to be raised from eight to sixteen in order to smooth out the base fee rate fluctuations that are caused by a climb above or decrease below the target gas limitations. 

 

It is anticipated that the basic gas charge would decrease from 12.5% to 6.25% when the denominator has been raised to 16.

MATIC Coin: A Brief History

The initial version of MATIC was made available to the public in 2017, along with the introduction of the Matic Network. It began with the intention of resolving the fundamental difficulties of the Ethereum network, particularly those relating to its performance and the costs associated with using it.

 

Since that time, it has seen widespread implementation across a variety of projects, which has helped it become one of the most well-known scaling solutions available on the cryptocurrency market. The Polygon team decided to broaden its scope of services in order to capitalize upon the initial success they had achieved.

 

As a result, MATIC has renamed Polygon in February 2021, and the company now provides a solution with greater scalability that also incorporates interoperability in its long-term goal.

 

Following this, Polygon has been developed with the intention of establishing a world in which users of various blockchains may communicate with one another and conduct business without the assistance of a third-party facilitator. 

 

Many sometimes refer to Polygon as the IoB, which stands for "Internet of Blockchain," drawing comparisons with the Internet of Things (IoT).

History of the Prices Paid for MATIC Coins

The highest price for MATIC at the beginning of 2021 was $0.025. The MATIC coin, on the other hand, had an extraordinary year in 2021, as its value surged by more than 9,000% in only the first half of the year.

 

The first high point occurred on or around March 13, 2021, when it was listed on Coinbase. On May 19, 2021, the value of MATIC reached a high of $2.99, which is considered to be its second peak. 

 

It's possible that the rising demand for the Ethereum network is to blame for the recent surge in the price of MATIC. Another possible explanation is the interest that businesses have shown in using Polygon for the development of Ethereum-based decentralized applications (DApps). 

 

Polygon comes out as an obvious option for service providers that are looking to deliver L2 scaling services while charging much cheaper gas rates.

 

After a month in which it made some insignificant gains, the cryptocurrency had another decline in April 2022, dropping from a high of $1.69 to a low of $0.60. 

 

The widespread bearish feeling in the cryptocurrency market was a major factor that contributed to MATIC's price decline; however, the cryptocurrency's price has since managed to stabilize, with its value ranging between $0.60 to $0.90.

 

As soon as it was reported that Meta and Polygon would be working together to enable users to trade NFTs on Instagram by using Polygon as the back end, the price started to rapidly increase, eventually reaching a high of $1.30.

Take Away

Matic Coin (Polygon) is a promising cryptocurrency that aims to solve some of the most pressing issues in the blockchain industry. Its fast transaction speeds, low fees, and scalability make it an attractive choice for both developers and users. 

 

As a beginner, it is essential to conduct thorough research before investing in any cryptocurrency, and understanding the fundamentals of Matic Coin is a great place to start.

 

When it comes to buying or selling Matic Coin, 14digitalxchange is a reliable and efficient platform to use. With a simple user interface, competitive rates, and fast settlement times, it easy for anyone to trade cryptocurrencies. 

 

The platform also offers various other cryptocurrencies, allowing users to diversify their portfolios.