To understand the Polygon network better, you must first be familiar with what kind of problem it seeks to solve. Ethereum (ETH) is one of the biggest multilayer blockchains in the world with various projects being built on it all the time.
These can interact with one another using the platform’s basic tools but there will be limitations that eventually result in scalability concerns. Users will meet roadblocks concerning their transactions or use of services at some point.
Thankfully, various solutions are offered to make Ethereum a lot more easy to use and Polygon is one of them. This layer-two (L2) network is focused on providing scalability and interactability solutions between assets not just between Ethereum-based chains but also those outside. You can read more about Polygon here to learn its basic information.
Core information about the Polygon network
Polygon was originally known as ‘Matic Network’. It was created by CEO Jaynti Kanani alongside COO Sandeep Nailwal, and CPO Anurag Arjun. Polygon was officially launched in 2017 using funds from friends and family in Mumbai, India where it has found its roots.
What makes Polygon such an important network today is how it is praised for having the foresight of what the crypto industry needs today. That would be the solution that will make interactivity between blockchains not only scalable but also cheaper. Thereby establishing the age of interactability that Ethereum and other multilayer networks are working towards.
Layer-two scaling solution for Ethereum
‘Layer-two’ means that the solution provider is a blockchain built on the foundation of another chain. In this case, Ethereum is the foundation and the tools provided by it are the ones used to build Polygon. That makes it a second layer to the ever growing smart contract-based network that rivals Bitcoin (BTC) in market values.
Polygon is a layer-two scaling solution designed to help fix Ethereum’s scalability issues by addressing challenges in transacting with separate compatible blockchains. It uses post-processing to lower the network load on the main network, speeding up transactions on Ethereum. This method also makes transactions cheaper, minimising the need for boosting.
MATIC uses as a cryptocurrency
Just like any crypto, MATIC can pay for services on the Polygon network or be used as gas fees to pay for transaction requests. You can also hold it as a store of value because of its volatile market value. Likewise, MATIC can be used to stake on the Polygon network, making you a validator in its proof-of-stake (PoS) blockchain.
MATIC is also an ERC-20 token since it’s built on the Ethereum blockchain. Thus, it can be used to be exchanged with other assets in the network either through trading or exchange services. You can also use MATIC to redeem rewards on certain dApps that offer them or buy non-fungible tokens (NFTs). However, these marketplaces need to be compatible with Polygon first.
How to trade MATIC
You will need a wallet that supports the Ethereum network because these can do the same for almost all ERC20 tokens like MATIC. A couple of examples of this are MetaMask and Coinbase Wallet. If you want to try other wallets, whether they are digital or hardware, always double check if MATIC is one of its supported currencies.
The same goes when looking for an exchange. Even if it accepts a lot of ERC20 tokens, it does not guarantee that there’s support for all of them. Thus, always double check if Polygon is a supported network. Once you find them, you may buy and sell MATIC through these platforms. To better understand your options, you can read more about Polygon here.
