Polygon (MATIC) (2 Part) Matic runs on the Plasma framework | Crypto Great | Bitcoin | DeFi
Polygon (MATIC) (2 Part)
Matic runs on the Plasma framework, which gives it compatibility with Ethereum and Ethereum tokens. Matic has its own token, called MATIC, and its own security model. Specically, it uses a proof-of-stake consensus mechanism, which means users must hold and post MATIC as a "stake" or bond before they're allowed to post transactions to the blockchain. If they post honest transactions, they earn interest or income from the Matic network. If they post dishonest transactions, they could have their stake stripped from them. Matic doesn't stop there, though. It also uses a second consensus method called the Plasma framework to ensure interoperability with the main Ethereum blockchain.
A huge advantage of the sidechain model is speed and scaling. Transactions can be posted to the blockchain in two seconds, and the sidechain could theoretically scale to multiple blockchains and process millions of transactions per second. At the moment, Ethereum can handle about 70 transactions every 13 seconds. MATIC tokens are governance tokens for all of Polygon's services. As we said, they're also the payment mechanism for transactions on the Matic sidechain.
Since Matic is connected to Ethereum, it accrues usage and value to the main Ethereum network. That's not just good for Ethereum investors... we believe it will help the project attract developers who would rather build on Ethereum than competing blockchains. It's growing rapidly, with more than $200 million locked on it. And a growing number of apps are integrating its technology. Polygon developers are hard at work on a new suite of tools, the Polygon SDK, which will give anyone the ability to roll out their own blockchain as a sidechain or Layer 2 on Ethereum. This will give Ethereum developers abilities similar to those on Cosmos and Polkadot.
Polygon Is Already Changing Industries
As we said, Polygon is like a one-stop shop that developers can use to get essentially any sort of scaling or security solution they need integrated with Ethereum. That includes sidechains, which have their own tokens and security models, and Layer 2 solutions, which inherit security directly from the main Ethereum blockchain. It will also include stand-alone blockchains that are compatible with Ethereum technology – or the Ethereum Virtual Machine ("EVM") – and also Polkadot's parachains and Cosmos' zones. Parachains and zones both increase the number of transactions that can safely be conducted on Polkadot and Cosmos in the way that sharding will eventually for Ethereum 2.0 (more on this later).
The focus for Polygon right now is on sidechains like its own blockchain, Matic. Matic is already home to more than 30 apps. They run the gamut from trading platforms to gaming, social networks, and digital collectibles. They include:
Polymarket: A predictions market that saw more than $10 million in trading volume around the time of the U.S. presidential election in 2020
Injective Protocol: A decentralized platform for derivatives trading that is in testnet and will soon launch its mainnet.
Terra Virtua: an immersive, blockchain-driven virtual reality entertainment platform.
Right now, all the growth for Polygon is in Ethereum compatibility. But that won't always be the case. That's why Polygon is also building solutions that will be compatible with Cosmos and Polkadot. Transactions on those blockchains will be cheaper and faster and will benet users of EVM compatible services. A good example is digital collectibles.
Most people have a good understanding of collectible items. But when it comes to digital collectibles, it's hard to process how something like a digital picture or drawing could be kept scarce. The answer is by attaching a provably scarce token. This proves that the item is unique. These tokens are usually referred to as non-fungible tokens ("NFTs"). They're nonfungible because each one is unique or very limited.
