Polygon, a Bengaluru-based blockchain development company, is trying to solve network issues like high transaction costs for all crypto-universe participants.
Last week, Coinbase announced that it would list MATIC, Polygon’s token, on its platform. The San-Francisco-based crypto exchange will support trading in MATIC to USD, MATIC to Bitcoin, MATIC to Euro, and MATIC to Sterling Pound transactions.
Within 48 hours of listing, the token’s price increased by 60%. Before the Coinbase listing, it has been trading on Binance since 2019.
Arjun Kalsy, vice president of Growth at Polygon, stated that both Coinbase and Binance were early investors in Matic Network, founded in 2017.
Arjun Kalsy, vice president of Growth at Polygon, stated that the company essentially had built a secondary blockchain on the exact design contours of the Ethereum blockchain. But unlike Ethereum, Polygon’s network is much cheaper and faster.
What Is Polygon?
The Matic Network (MATIC) is a scaling project whose main objective is to solve the scalability problems in Ethereum. The Ethereum network is in high demand on different popular decentralized platforms and decentralized financial applications (DeFi).
The Ethereum network’s problem is that it can only process an average of 15 transactions per second at a time. And the applications that use this network have to compete for the limited resources that Ethereum provides. This has caused the average price of Ethereum transactions to hover around more than $20 on average, with peaks of more than $150 at times with high demand.
The Matic project provides a solution to this problem by introducing second-layer scaling. MATIC provides a solution by delivering these computations and transactions to the sidechains. The second layer chain has a security of the Plasma and Proof of Stake (PoS) framework by MATIC validators.
In addition to solving scalability issues, Matic Network also focuses on improving usability without losing decentralization benefits. They also hope to leverage the existing developer community to deliver better dApp functionality and a better user experience.
How Does Matic Network Work?
The MATIC network solves the scald problem by creating a decentralized platform, called the Kovan test, which uses an adapted version of the Plasma framework. This framework provides a solution for faster and very low-cost transactions compared to Ethereum transactions.
Matic Network raises interesting future possibilities for third-party apps and user ecosystems, given their power utilities.