Can Polygon Matic’s Features Boost its Price?

Matic-coin
Image Source: CoinMarketCap

 

Matic is a perfect blockchain platform that offers less expensive and extremely quick transactions while minimizing the complexity associated with the decentralised ecosystem. MATIC was developed exclusively to give users a multifunctional and multipurpose advantage in all spheres of life.

Welcome to “The Proficiency Post”, where you will be going through a fun and comprehensive journey of learning about Matic  and many more coins.

Polygon Matic? (features and advantages)

So starting off by answering this question that what actually Polygon is and what are its features and advantages? Well in simple terms, it is a secondary scaling solution for the Ethereum blockchain. So, what happens here is that these types of solutions work on top of a pre-existing blockchain network rather than using their own blockchain.

In Polygon’s case, it works on top of Ethereum which as we all must have heard that it has become quite slow and expensive to use since it became more popular. And this creates a gap where other protocols have the opportunity to chip in and make their mark. That is where Polygon Matic shines and it makes it scope extended beyond just being another digital asset.

Firstly, it is a layer 2 scaling solution for Ethereum, designed with the vision to improve the network’s transaction processing speed and reduce transaction costs. Now, let’s look at how Polygon actually works?

How does Polygon work?

So, in case of Polygon, its blockchain functions just like every other Proof of Stake based blockchains. Its structure, token, client nodes, local Dapps, validator nodes, etc., are just like that of the other networks except the factor that exchanges are clustered and settled over the Ethereum mainchain. And let me tell you that the Polygon network is unique in the sense that it offers a second-level solution or layer 2 solution, which means that instead of conducting transactions within the Ethereum network, Polygon processes them first.

And this is of major importance as we know how slow and expensive Ethereum. Further, layer-2 scaling solutions allude to off-chain solutions This includes reducing elements having evaluation power from the primary blockchain before they are executed elsewhere, such as on sidechains.

This increases the mainchain’s throughput and disperses the network’s ability to evaluate skill. Layer-2 solutions are becoming more well-known as they are important to the widespread acceptance of cryptographic currency.

You can think about the MATIC sidechain as a valuable section of the vast universe of Ethereum, which offers clients easy project implementation and good working experience. Each Ethereum based decentralized app or some other Ethereum viable blockchain can be converted to the Matic Sidechain to work in a considerably more improved climate.

And keep this in mind that Polygon is not a separate blockchain network. It actually fills the role of an add on as it operates on top of the Ethereum blockchain, which allows users to access its functionality. This includes reducing elements having evaluation power from the primary blockchain before they are executed elsewhere, such as on sidechains.

This increases the mainchain’s throughput and disperses the network’s ability to evaluate skill. Layer-2 solutions are becoming more well-known as they are important to the widespread acceptance of cryptographic currency.

And that is the magic that Polygon Matic brings with it. Coming to the Matic network which I mentioned earlier. What is Matic Network? Well you will be surprised to know that, Polygon was initially launched as Matic Network. And this is an India based company and was founded in October 2017 by Jaynti Kanani, Sandeep Nailwal and Anurag Arjun. These are also India’s first crypto billionaires.

 

 

Crypto-billionaire
India’s first crypto Billionaires                 Image source: Mint

 

To solve the problems caused by Ethereum’s high gas costs and crowded network, the three  co-founders created Polygon. They have specifically described addressed this in their white paper as well. So, MATIC is nothing but the native token of Polygon. And you will be surpised that it is now among the top 15 cryptocurrencies by market capitalization even though it was launched in 2017.

MATIC has a max supply of 10 billion coins, with a circulating supply of around 6.87 billion coins, or 63% of the max supply. It is used to power the network and serve as a utility token for Polygon. Matic thus, functions as the network’s main transactional currency and as a financial incentive for those who want to contribute to the ecosystem.

At the same time, Matic can also be used as collateral in a process called staking, which enables users to participate in Polygon’s consensus mechanism to validate transactions in return for MATIC tokens.

Why should you buy MATIC tokens?

1. High potential growth from NFTs demand Growth is what we all desire in our life and so is the case with this token. And this is the first main reason as to why you should invest in MATIC token and the overall Polygon network.

This is because they have the growth potential and it is is due to the explosion in popularity regarding Non-Fungible Tokens or commonly known as NFTs. Specifically, if we talk about the year 2021, NFTs saw an explosion of use cases such as NFTs in the fashion and gaming industry, especially with the rise of the metaverse.

But in order for these NFTs to exist, they must be issued over a blockchain network. And that is where Polygon Matic comes to the play as it is much cheaper to mint NFTs on when compared to Ethereum, and because it is a much more cost-efficient blockchain network, transacting with NFTs is much cheaper as well.

Now consider yourself as a user here! You are more likely to buy or sell NFTs on the Polygon network when compared to the Ethereum network. This because you know that the fee is much cheaper. And this will, in turn, result in a lot more people minting all of their NFTs within the Polygon network, which leads to a heightened level of popularity as well as utility. A win win situation in both cases.

2. Many DeFi projects are built on Polygon Network So being an efficient blockchain platform that also offers cheap transactions, the Polygon network has been a development heaven for many decentralized application developers. What this essentially means is that Polygon is already home to many DeFi projects.

However, this list will likely expand a lot further throughout the following years as many new developers and projects jump ship and switch to the Polygon Network. And that is where we can capitalize the situation and reap the benefits later.

3. Global Partnership opportunities – Due to its efficiency and utility, we can expect Polygon to conduct a lot of global partnerships going forward. As compared to using Ethereum, Polygons gives a considerably better amount of flexibility and scalability, therefore this is very likely to happen.

4. Large Ecosystem As mentioned earlier there are a lot of dApps created on this platform. At the time of creating this article, over 750 dApps developed for the Polygon Networks, which include some of the most popular DeFi projects with over 475,000 users in some of them.

You have projects such as Sunflower Farmers, Crazy Defense Heroes, , QuickSwap,  KyberSwap, ApeSwap, Pegaxy, and others. There have also been alot of Polygon-based digital games created.

5. Extremely Scalable The Polygon network can currently achieve a speed of 7,250 transactions per second, which makes it an extremely scalable network. If we compare it with Ethereum, the speed is limited to only 15 transactions per second, which means that Polygon offers 47,950% more transactions per second. And this makes it far more scalable.

This development will also affect coin prices, specifically within the Matic Network. So, Polygon seems to be an amazing option and fresh network to look at when we are thinking about alternatives of Ethereum.

Don’t forget to comment your thoughts regarding Polygon. And I will see you in the next one.

Disclaimer: This article is not intended to serve as internal source of finance. As of yet, we are not financial advisors. Before investing in any of the aforementioned coins, we advise you to do your own research or consult a financial professional.

Leave a Comment