Polygon Blockchain Network
Polygon blockchain, is one of the most prominent and well-known blockchains. This module will explore one of Ethereum's most unconventional layer-2 scaling solutions, delving deep into the Polygon's intricate mechanics and its vital role in the blockchain space.
Understanding Layer-2 Solutions
Layer-2 solutions are the blockchain entities that exist and run in parallel to the mainnet (Ethereum in Polygon's case) yet conduct their transactions beyond the mainnet's scope. This symbiosis between the two worlds results in accelerated transaction speeds and diminished gas fees, all while preserving the integrity of the Ethereum mainnet.
The Ethereum mainnet, the beacon for DApp developers, experienced speed issues due to the network's diminishing throughput. Gas fees began to soar into the double or even triple digits in USD equivalence, rendering Ethereum accessible to fewer entities.
Layer-2 solutions rose as saviors of the DeFi realm. They breathed life into Ethereum's scalability, drawing strength from its security foundations.
How Polygon Blockchain Operates
Polygon's blockchain operates on the principles of the Proof of Stake (PoS) consensus, a stark contrast to the traditional Proof of Work (PoW). PoS abandons the laborious computation of PoW algorithms in favor of validators who verify and validate transactions.
The PoS ecosystem of Polygon is shrouded in MATIC, the protocol's native token. MATIC itself can be earned through two elusive paths:
Validator: A validator runs a full node to validate transactions. Rewards come in the form of fees and freshly minted MATIC. However, malevolent actions or even an innocuous misstep may result in the forfeiture of MATIC rewards.
Delegator: Delegators, the caretakers of the network, receive the MATIC from other users for the purpose of assisting them in validating transfers. This path is easier than that of a validator yet carries its own set of challenges.
Polygon Bridge
Transferring assets from the Ethereum realm to the Polygon domain requires using the PoS bridge, a set of smart contracts. These agreements facilitate the intangible passage of assets from the Ethereum mainnet to the Polygon sidechain.
Though this journey requires an ETH fee, once within the Polygon scope, transactions cost less.
The Polygon Protocol and the SDK
The Polygon Protocol interconnects all Polygon-based blockchains and bridges them to the Ethereum domain.
Polygon's Software Development Kit (SDK), unveiled in May 2021, is an arsenal of software tools, enabling developers to craft their own blockchain and DeFi apps. Ethereum compatibility, modularity, and extensibility are the three core principles of Polygon's SDK.
The SDK supports Ethereum-compatible autonomous chains in its initial iteration. These blockchains wield the Polygon bridge to communicate with Ethereum while retaining their autonomy.
Utility of Polygon
Polygon offers users a chance to participate in activities similar to those within the Ethereum ecosystem but without exorbitant gas fees or limited throughput. From a simple scaling solution, Polygon has blossomed into a multifaceted domain.
Polygon has already gained traction, with some projects already using it for their advantage, such as yield-generating protocols like Aave and Curve Finance, decentralized exchanges such as SushiSwap, and the enigmatic realm of NFTs within OpenSea beckon the brave. Polygon serves as the foundation for these ventures, making the exchange of NFTs a seamless incantation.
The MATIC Token
MATIC, a native token of Polygon, is the heart of the entire ecosystem. It serves various purposes, such as a conduit for gas fees, a key to governance, and a tool for staking. With a circulating supply of 7.48 billion MATIC tokens and a maximum supply of 10 billion, it has ascended to the upper echelons of the cryptic hierarchy.
Closing Thoughts
Polygon emerges as a DeFi project offering a key to blockchain scalability and efficiency. With a diverse array of tools for the users, innovative mechanisms, and unwavering support for the Ethereum Virtual Machine (EVM), the Polygon realm has seen a surge of projects utilizing its solutions for their benefit. In this ever-evolving cryptic landscape, Polygon stands as a way of diminishing transfer complexity and increasing transaction speed.