Cryptocurrency Polygon Matic is in the news recently for a variety of reasons. Launched in 2017, Polygon Matic emerged as a problem solver in the crypto industry. Polygon is designed to support the Ethereum blockchain.
To keep it simple, the Polygon platform is designed to enable Ethereum blockchain to communicate with each other. This platform also allows users to create their own Ethereum supported blockchains. This type of network is particularly used by institutions and financial agencies. These institutions are on the lookout to undertake a large volume of financial transactions. If you are interested in bitcoin trading, check Bitcoin Champion
Understanding Ethereum’s limitations
Before understanding the increasing popularity of Polygon, let us understand the key factors contributing to this popularity. Polygon has its roots in India. The developers were quick to list down the certain limitations of Ethereum technology. The primary limitations may be attributed to higher transaction fees. Besides this, the Ethereum network also warrants traffic volume creating network congestion. This in turn results in higher transaction time and delayed customer satisfaction.
How did Polygon emerge as a savior?
Polygon matic emerged as a savior to support Ethereum in balancing the above limitations. Polygon crypto came out with a viable solution of enabling a two-layer solution. This innovative solution enabled Ethereum based transactions to run in minimal time and at a reduced cost.
This two-layer solution is designed in such a way to enable faster transactions and divert traffic. The network operates above Ethereum. Additionally, these network chains also have side chains. These side chains enable traffic diversion as per the defined algorithm. This reduces traffic on the main network and enables reduced computer power to confirm transactions.
How does Polygon Matic work?
Matic works on polygon blockchain. Polygon uses the proof of stake (POS) technology to confirm every transaction. Polygon Matic is typically used as both investment and token. In the case of investment, these cryptos increase value over time, and investors hold these for a longer period. The philosophy works differently for utility tokens. These types of tokens are generally used for staking purposes. They also generate huge returns during this staking process.
The proof of stake philosophy adopted by Polygon helped in gaining immense attention. This was the only crypto in the industry to use this philosophy as compared to its predecessors. Moving forward, in February 2021 Polygon changed its mission. Polygon shifted as an intermediary between many blockchains. This crypto worked to interconnect many chains of networks. This interconnection was in turn supported by the Ethereum platform along with network security.
The re-branding philosophy and Polygon’s ability to connect many chains became a huge sensation. This also helped in raising the crypto value as well. The total supply increased by more than 50% and average users have gone up by 26000. Polygon platform has also been able to bring retailers on board.
Is Polygon here to stay?
The total crypto value of Polygon has increased to $2.92 in December. For various reasons, Polygon has been able to stay on top and create a buzz in the industry.
Another development in Polygon includes a partnership with retail industries in the market. Recently, DraftKings announced their association with Polygon. The company will be developing NFTs using Polygon technology.
The number of decentralized applications running on this network has also seen an increase. There were only 30 apps until a year before. Today the count has increased to more than 2500 apps running on Polygon.
Another major influx is the announcement by Coinbase. This is one of the biggest cryptocurrency platforms available globally. It enables investors to undertake easy trading activities. Coinbase will be developing an integrated POS to allow easy transactions.
To conclude, Polygon is one of the best bets in the crypto industry today. Many companies are coming forward with their integration plans making this crypto a sure bet. Few other exchanges including UniSwap and SushiSwap have listed Polygon in their exchange. This will also allow investors to trade their coins without any third-party intervention.
This India-based crypto token has showcased an upward trend. There are technological developments providing a higher return on investments. There will be an increased acceptance of this crypto in the coming days. Investors can use this coin for long-term and short-term investments.