Polygon: The Blockchain Platform for Ethereum Scaling and Infrastructure Development
Polygon (MATIC) is a blockchain platform that allows users to create and operate their own child chains, which are independent and customizable blockchains that inherit the security and features of the parent Ethereum chain. It also enables cross-chain communication and transactions between different child chains and the Ethereum chain. In this post, we will explore the features, trends, updates, analysis, and outlook of Polygon and its native token MATIC.
Coin Introduction and Features
Polygon was founded in 2017 by a team based in India, who are experienced developers and entrepreneurs. The white paper for Polygon was published in September 2017, and the token sale was launched and completed in April 2018, raising over $30 million in ETH. The mainnet of Polygon launched in March 2019, after a successful testnet phase.
Polygon’s core technology is a parent-child chain architecture that separates the core functions of the blockchain from the specific applications and use cases. The parent Ethereum chain provides the security, consensus, and interoperability for the whole network, while the child chains have their own native tokens, smart contracts, data storage, and features. The child chains can also communicate and transact with each other and the Ethereum chain, using a unique bundling mechanism that reduces the blockchain bloat and increases the scalability.
Polygon’s native token is MATIC, an ERC-20 utility token that powers the Polygon network. MATIC is used to pay for the fees and services on the network, such as creating a child chain, bundling a transaction, or accessing a feature. MATIC is also used for staking to run a Polygon node, which is a node that participates in the network and earns rewards. MATIC holders can also participate in the governance of the network through the Polygon DAO, which controls network parameters and upgrades.
Market Analysis and Trends
MATIC is currently trading at $0.4899 USD with a 24-hour trading volume of $1,069,885,490 USD1. It has a circulating supply of 6,288,212,870 MATIC coins and a max. supply of 10,000,000,000 MATIC coins1. It ranks #23 on CoinMarketCap with a market capitalization of $3,079,945,695 USD1.
MATIC has experienced significant price fluctuations in the past year, reaching a high of $2.68 USD on May 18, 2021 and a low of $0.0129 USD on March 13, 20201. The price movements of MATIC are influenced by various factors, such as:
- The demand and supply of scalable and interoperable blockchain solutions and the adoption of Polygon’s platform and child chains.
- The development and innovation of Polygon’s technology and protocol, especially the integration with other platforms and protocols, such as Ethereum, Chainlink, and Uniswap.
- The competition and collaboration with other projects and platforms in the blockchain and crypto space, such as Cosmos, Polkadot, and Cardano.
- The regulatory and legal environment and the compliance of blockchain and crypto services with different jurisdictions and standards.
- The sentiment and behavior of the crypto community and the general public towards blockchain and crypto and Polygon.
Project Updates
Polygon is constantly working on improving its platform and protocol, as well as engaging with its community and partners. Some of the recent updates and announcements from Polygon are:
- Polygon 2.0 Release: Polygon announced the release of version 2.0 of its platform and protocol in June 2021, which introduced new features and enhancements, such as support for sharding, state channels, and layer-2 solutions. The release also enabled the interoperability and communication between Polygon and other blockchain networks and applications, such as Ethereum, Polkadot, and Cosmos.
- Polygon x Chainlink: Polygon announced the integration with Chainlink, a leading decentralized oracle network, in April 2021, enhancing the security and reliability of Polygon’s child chains and smart contracts. The integration enables Polygon to leverage Chainlink’s network of secure and tamper-proof oracles to provide verifiable and up-to-date data and events to the child chains and smart contracts, while ensuring the privacy and consent of users. Polygon and Chainlink will also collaborate on developing and promoting blockchain-based solutions and applications for various use cases and industries2.
- Polygon x Uniswap: Polygon announced the launch of MATIC on Uniswap, a popular decentralized exchange, in May 2021, increasing the liquidity and accessibility of MATIC tokens. The launch also coincided with the release of a new liquidity mining program, which rewards MATIC holders for providing liquidity to the MATIC/ETH pool on Uniswap. The program aims to incentivize the participation and growth of the Polygon community and ecosystem3.
Analysis and Recommendations for Investments
Polygon is a promising project that aims to provide a blockchain platform for Ethereum scaling and infrastructure development. It offers a unique and innovative solution for creating and operating independent and customizable blockchains that inherit the security and features of the parent Ethereum chain. Polygon enables users to enjoy a flexible and versatile user experience, as well as to leverage the benefits of blockchain technology, such as transparency, immutability, and interoperability.
MATIC is a valuable token that enables users to access and benefit from Polygon’s platform and protocol. It also represents a stake and a voice in the governance of the network, as well as the potential integration with other platforms and protocols. MATIC holders can look forward to the development and innovation of Polygon’s technology and protocol, as well as the growth and support of the Polygon ecosystem.
Therefore, we recommend MATIC as a good investment for long-term holders who believe in the vision and potential of Polygon and blockchain and crypto services. However, we also advise investors to do their own research and due diligence, as well as to be aware of the risks and uncertainties involved in the crypto market.
Outlook and Community Response
Polygon has a positive outlook for the future, as it continues to develop and innovate its platform and protocol, as well as to expand and engage its community and partners. Polygon has a clear roadmap and vision for 2021 and beyond, which includes:
- Polygon Child Chain Expansion: Polygon plans to launch more child chains on its platform, covering various use cases and industries, such as gaming, social media, finance, healthcare, and education. Polygon will also collaborate with more partners and institutions in the blockchain and crypto industry, such as governments, enterprises, and NGOs.
- Polygon Protocol Upgrade: Polygon plans to upgrade its protocol to version 3.0 in Q4 2021, which will introduce new features and enhancements, such as support for decentralized identifiers (DIDs), verifiable credentials (VCs), and zero-knowledge proofs (ZKPs). The protocol upgrade will also enable the migration of MATIC tokens from ERC-20 to native tokens on the Polygon network.
- Polygon Ecosystem Growth: Polygon plans to grow and support its ecosystem of users, developers, and partners, who will use and contribute to Polygon’s platform and protocol. Polygon will also foster the development and innovation of blockchain-based solutions and applications for various use cases and industries, such as Polygon DApp, Polygon Chain, and Polygon DApp Store.
Polygon has a positive community response, as it has a loyal and active fan base, as well as a strong and reputable team and advisors. Polygon has over 100,000 followers on Twitter, over 20,000 members on Telegram, and over 10,000 subscribers on Reddit1. Polygon also receives positive feedback and recognition from various media outlets, industry experts, and influencers, such as CoinMarketCap, CoinGecko, and Coinbase.