What is Polygon (MATIC)?
Polygon Is a network of secure second level (L2) solutions and autonomous sidechains. Its goal is to increase the scalability of Ethereum and reduce the cost of transactions. In addition to in-house developments Matic PoS Chain and Matic Plasma Chains, the Polygon project will support Optimistic Rollups, ZK-Rollups and Validium…
Who created Polygon and when?
The platform’s test network was launched in October 2017 under the name Matic Network.
The project has four co-founders:
- Gainti Kanani, CEO of Polygon Network – data processing and analysis specialist;
- Executive Director Sandip Nailwal – Management Consultant;
- Director of Production Control Department Anurag Arjun – Product Manager;
- Mikhailo Beli [Mihailo Bjeli] – developer.
The creators see Polygon as a solution to the scalability and efficiency of blockchain networks.
The Polygon team has created a Plasma Chains scaling model and Ethereum Matic PoS Chain sidechain based on Proof-of-Stake (PoS). Over time, this sidechain has become a popular scalability option for various applications.
In April 2019, the company held an IEO of the MATIC token and raised $ 5.6 million.In February 2021, the Matic Network developers changed the name of the project to Polygon. The rebranding was timed to coincide with the transition from a second-tier solution for the Ethereum blockchain to a multi-chain system similar to Polkadot.
What are the technological features of Polygon?
The central component of the Polygon ecosystem is the modular Polygon SDK, which allows developers to create decentralized applications and any network infrastructure elements.
Polygon supports two main flavors of Ethereum-compatible systems: autonomous and secure networks using the security as a service model.
Autonomous networks rely on their own security – for example, they use the Proof-Of-Stake or Delegated Proof-Of-Stake consensus models. Such networks are independent and flexible, but it is precisely these features that prevent them from achieving an acceptable level of security. For example, PoS requires a large number of reliable validators. This model is suitable for corporate systems and large projects with strong user communities.
Secured networks use a security-as-a-service model. Its work is provided either directly by Ethereum, for example, through “evidence of fraud” [fraud proofs]that Plasma applies, or through a pool of validators. In the Polygon ecosystem, various projects can access the services of validators. This model is similar to the Polkadot collective security mechanism.
Secured networks guarantee a high level of security, but at the cost of independence and flexibility. This model is usually preferred by privacy-focused projects.
The Polygon architecture consists of four abstract and composable layers:
Ethereum Layer
Polygon-based networks can use Ethereum as a base layer, which is implemented as a set of smart contracts. This layer is used for operations such as finalization, checkpoint creation, staking, dispute resolution, and data exchange between Ethereum and Polygon. This layer is auxiliary; Polygon-based networks are not required to use it.
Security Layer
This is another optional layer that can make validators as a service work. This feature allows Polygon-based systems to use a set of validators that can periodically check the validity of any of the networks in the system in exchange for a reward.
The security layer is implemented as a metablock, which operates in parallel to Ethereum and is responsible for managing validators – registration, distribution of rewards, shuffling and validation of Polygon Chains.
The security layer is abstract and can have many implementations with different characteristics. This layer can also be implemented directly on Ethereum and used by miners as validators.
Polygon Networks Layer
This is the first required layer in the Polygon architecture. It consists of sovereign blockchains, each of which supports transaction matching, local consensus, and block creation functions.
Execution Layer
This layer is responsible for interpreting and executing transactions included in the Polygon blockchains. It consists of runtime sublevels and runtime logic.
Matic PoS Chain and Matic Plasma Chains
Matic Plasma Chains is an implementation of a framework for building scalable decentralized Plasma applications. This second level solution was originally proposed by Joseph Poon and Vitalik Buterin.
Matic PoS Chain is a sidechain running parallel to the Ethereum blockchain. Matic PoS Chain uses the Proof-of-Stake consensus mechanism and its own set of validators.
The Matic PoS Chain is EVM compliant, allowing Ethereum-based projects to seamlessly move smart contracts to this blockchain.
What is Polygon’s consensus mechanism?
Plasma / PoS uses a Proof-of-Stake (PoS) consensus mechanism.
In the process of reaching consensus in Polygon, validator users stake MATIC tokens. Polygon chains provide a mechanism for removing staked products. It prevents stakeholders from proposing invalid blocks, illegally verifying blocks, and performing invalid transactions.
Matic PoS Chain has two levels:
Block production level Bor [Block Producer Layer] responsible for aggregating transactions into blocks.
Heimdall (validator level) supports all validation nodes (stakers) that work in parallel with Matic staking contracts and manage validator accounts, ensure funds are removed from staking, and issue rewards.
Heimdall is powered by Tendermint engine, in which data structures and signature scheme have been changed. He is responsible for block validation, the work of the block creator selection committee, and overseeing the implementation of sidechain blocks in Ethereum. Heimdall aggregates Bor-generated blocks into Merkle tree, and periodically publishes the Merkle root in the root chain.
Polygon SDK
Polygon links different versions of Ethereum-based scaling solutions. The Polygon SDK plays a key role in this process – a flexible modular framework for launching new blockchains using various scaling technologies.
Thanks to the Polygon SDK, developers can create or connect blockchains based on the L-2 platforms Plasma, Optimistic Rollups, ZK-Rollups and Validium with the Matic POS sidechain and its analogues. The Polygon SDK is under development.
What role does the native MATIC token play in the Polygon ecosystem?
The total supply is 10 billion MATIC.
In April 2019, during the IEO on Binance, the project sold 3,230,085,551 tokens (~ 32.30% of the total supply).
MATIC is used as a means of paying transaction fees and settlements between participants in the Polygon ecosystem.
Matic sidechains reach consensus through a Proof-of-Stake-based layer in which network participants stake MATIC tokens. Computing resources are required to validate blocks, publish evidence, and other operations. MATIC inflation allows the providers of these resources to be rewarded.
The issue of MATIC is carried out in stages, according to the schedule calculated for the period until December 2022.
In the future, MATIC tokens, originally created to raise funds for the development of the project, will play the role of a mechanism to ensure the security of the system and a means of decentralized management of the development of the Polygon platform.
What are the advantages of Polygon?
The Polygon architecture is multifunctional. It allows other applications to select the optimal scaling solution that best suits their needs.
For example, a DeFi protocol that intends to store billions of dollars locked in smart contracts will likely want to improve security at the expense of sovereignty. He will most likely opt for an Ethereum base layer.
An NFT marketplace looking to lower transaction costs will be willing to sacrifice some of its security. Such a project will choose the Security Layer with its set of sharing validators.
Developers of a gambling application can use their own consensus mechanism with a high block creation speed. They can ditch the base Ethereum and Security Layer entirely, focusing on the Polygon Network Layer.
Application teams can move from one scaling solution to another when the design changes or a more efficient scaling option becomes available. The design architecture allows the various Polygon-based scaling technologies to interact rather than being isolated.
Unlike Tier 1 blockchains such as Polkadot, Cosmos, and Avalanche, in the Polygon ecosystem, the Ethereum blockchain is the main connecting hub. This allows the project to build on a strong community of users and developers, the popular Solidity programming language and the Ethereum Virtual Machine (EVM).
How is Polygon evolving?
More than 1 million addresses have been created on the basis of Polygon. More than 80 million transactions are carried out per day. Based on the project’s own PoS blockchain, more than 50 digital assets have been released, including MATIC, Tether USD (USDT), USD Coin (USDC), Quickswap (QUICK), Dai Stablecoin (DAI), Chain Games (CHAIN).
Many projects have either migrated to Matic PoS Chain or are in the process of migrating – Decentral Games, SportX, Easyfi, Neon District, 1inch Network, Quickswap, Uniswap, SushiSwap, Aavegotchi, Polymarket, Polkamarkets and Superfarm. The Graph and Chainlink are planning to add support for Polygon. The project also announced a partnership with a major player in the video gaming industry Atari.
In May 2021, Polygon entered the Mark Cuban Companies, a list of companies backed by billionaire Mark Cuban. The amount of the investment has not been disclosed.
The ecosystem of the project is rapidly evolving – in the DeFi Pulse rating, the Polygon project takes fourth place in terms of the total value of funds blocked in the protocol.
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Related articles
What is Polygon (MATIC)?
Polygon Is a network of secure second level (L2) solutions and autonomous sidechains. Its goal is to increase the scalability of Ethereum and reduce the cost of transactions. In addition to in-house developments Matic PoS Chain and Matic Plasma Chains, the Polygon project will support Optimistic Rollups, ZK-Rollups and Validium…
Who created Polygon and when?
The platform’s test network was launched in October 2017 under the name Matic Network.
The project has four co-founders:
- Gainti Kanani, CEO of Polygon Network – data processing and analysis specialist;
- Executive Director Sandip Nailwal – Management Consultant;
- Director of Production Control Department Anurag Arjun – Product Manager;
- Mikhailo Beli [Mihailo Bjeli] – developer.
The creators see Polygon as a solution to the scalability and efficiency of blockchain networks.
The Polygon team has created a Plasma Chains scaling model and Ethereum Matic PoS Chain sidechain based on Proof-of-Stake (PoS). Over time, this sidechain has become a popular scalability option for various applications.
In April 2019, the company held an IEO of the MATIC token and raised $ 5.6 million.In February 2021, the Matic Network developers changed the name of the project to Polygon. The rebranding was timed to coincide with the transition from a second-tier solution for the Ethereum blockchain to a multi-chain system similar to Polkadot.
What are the technological features of Polygon?
The central component of the Polygon ecosystem is the modular Polygon SDK, which allows developers to create decentralized applications and any network infrastructure elements.
Polygon supports two main flavors of Ethereum-compatible systems: autonomous and secure networks using the security as a service model.
Autonomous networks rely on their own security – for example, they use the Proof-Of-Stake or Delegated Proof-Of-Stake consensus models. Such networks are independent and flexible, but it is precisely these features that prevent them from achieving an acceptable level of security. For example, PoS requires a large number of reliable validators. This model is suitable for corporate systems and large projects with strong user communities.
Secured networks use a security-as-a-service model. Its work is provided either directly by Ethereum, for example, through “evidence of fraud” [fraud proofs]that Plasma applies, or through a pool of validators. In the Polygon ecosystem, various projects can access the services of validators. This model is similar to the Polkadot collective security mechanism.
Secured networks guarantee a high level of security, but at the cost of independence and flexibility. This model is usually preferred by privacy-focused projects.
The Polygon architecture consists of four abstract and composable layers:
Ethereum Layer
Polygon-based networks can use Ethereum as a base layer, which is implemented as a set of smart contracts. This layer is used for operations such as finalization, checkpoint creation, staking, dispute resolution, and data exchange between Ethereum and Polygon. This layer is auxiliary; Polygon-based networks are not required to use it.
Security Layer
This is another optional layer that can make validators as a service work. This feature allows Polygon-based systems to use a set of validators that can periodically check the validity of any of the networks in the system in exchange for a reward.
The security layer is implemented as a metablock, which operates in parallel to Ethereum and is responsible for managing validators – registration, distribution of rewards, shuffling and validation of Polygon Chains.
The security layer is abstract and can have many implementations with different characteristics. This layer can also be implemented directly on Ethereum and used by miners as validators.
Polygon Networks Layer
This is the first required layer in the Polygon architecture. It consists of sovereign blockchains, each of which supports transaction matching, local consensus, and block creation functions.
Execution Layer
This layer is responsible for interpreting and executing transactions included in the Polygon blockchains. It consists of runtime sublevels and runtime logic.
Matic PoS Chain and Matic Plasma Chains
Matic Plasma Chains is an implementation of a framework for building scalable decentralized Plasma applications. This second level solution was originally proposed by Joseph Poon and Vitalik Buterin.
Matic PoS Chain is a sidechain running parallel to the Ethereum blockchain. Matic PoS Chain uses the Proof-of-Stake consensus mechanism and its own set of validators.
The Matic PoS Chain is EVM compliant, allowing Ethereum-based projects to seamlessly move smart contracts to this blockchain.
What is Polygon’s consensus mechanism?
Plasma / PoS uses a Proof-of-Stake (PoS) consensus mechanism.
In the process of reaching consensus in Polygon, validator users stake MATIC tokens. Polygon chains provide a mechanism for removing staked products. It prevents stakeholders from proposing invalid blocks, illegally verifying blocks, and performing invalid transactions.
Matic PoS Chain has two levels:
Block production level Bor [Block Producer Layer] responsible for aggregating transactions into blocks.
Heimdall (validator level) supports all validation nodes (stakers) that work in parallel with Matic staking contracts and manage validator accounts, ensure funds are removed from staking, and issue rewards.
Heimdall is powered by Tendermint engine, in which data structures and signature scheme have been changed. He is responsible for block validation, the work of the block creator selection committee, and overseeing the implementation of sidechain blocks in Ethereum. Heimdall aggregates Bor-generated blocks into Merkle tree, and periodically publishes the Merkle root in the root chain.
Polygon SDK
Polygon links different versions of Ethereum-based scaling solutions. The Polygon SDK plays a key role in this process – a flexible modular framework for launching new blockchains using various scaling technologies.
Thanks to the Polygon SDK, developers can create or connect blockchains based on the L-2 platforms Plasma, Optimistic Rollups, ZK-Rollups and Validium with the Matic POS sidechain and its analogues. The Polygon SDK is under development.
What role does the native MATIC token play in the Polygon ecosystem?
The total supply is 10 billion MATIC.
In April 2019, during the IEO on Binance, the project sold 3,230,085,551 tokens (~ 32.30% of the total supply).
MATIC is used as a means of paying transaction fees and settlements between participants in the Polygon ecosystem.
Matic sidechains reach consensus through a Proof-of-Stake-based layer in which network participants stake MATIC tokens. Computing resources are required to validate blocks, publish evidence, and other operations. MATIC inflation allows the providers of these resources to be rewarded.
The issue of MATIC is carried out in stages, according to the schedule calculated for the period until December 2022.
In the future, MATIC tokens, originally created to raise funds for the development of the project, will play the role of a mechanism to ensure the security of the system and a means of decentralized management of the development of the Polygon platform.
What are the advantages of Polygon?
The Polygon architecture is multifunctional. It allows other applications to select the optimal scaling solution that best suits their needs.
For example, a DeFi protocol that intends to store billions of dollars locked in smart contracts will likely want to improve security at the expense of sovereignty. He will most likely opt for an Ethereum base layer.
An NFT marketplace looking to lower transaction costs will be willing to sacrifice some of its security. Such a project will choose the Security Layer with its set of sharing validators.
Developers of a gambling application can use their own consensus mechanism with a high block creation speed. They can ditch the base Ethereum and Security Layer entirely, focusing on the Polygon Network Layer.
Application teams can move from one scaling solution to another when the design changes or a more efficient scaling option becomes available. The design architecture allows the various Polygon-based scaling technologies to interact rather than being isolated.
Unlike Tier 1 blockchains such as Polkadot, Cosmos, and Avalanche, in the Polygon ecosystem, the Ethereum blockchain is the main connecting hub. This allows the project to build on a strong community of users and developers, the popular Solidity programming language and the Ethereum Virtual Machine (EVM).
How is Polygon evolving?
More than 1 million addresses have been created on the basis of Polygon. More than 80 million transactions are carried out per day. Based on the project’s own PoS blockchain, more than 50 digital assets have been released, including MATIC, Tether USD (USDT), USD Coin (USDC), Quickswap (QUICK), Dai Stablecoin (DAI), Chain Games (CHAIN).
Many projects have either migrated to Matic PoS Chain or are in the process of migrating – Decentral Games, SportX, Easyfi, Neon District, 1inch Network, Quickswap, Uniswap, SushiSwap, Aavegotchi, Polymarket, Polkamarkets and Superfarm. The Graph and Chainlink are planning to add support for Polygon. The project also announced a partnership with a major player in the video gaming industry Atari.
In May 2021, Polygon entered the Mark Cuban Companies, a list of companies backed by billionaire Mark Cuban. The amount of the investment has not been disclosed.
The ecosystem of the project is rapidly evolving – in the DeFi Pulse rating, the Polygon project takes fourth place in terms of the total value of funds blocked in the protocol.
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