As Ethereum expanded and onboarded a massive number of users, the need to handle a higher volume of transactions while maintaining efficiency became a pressing concern.
The current transaction throughput of the Ethereum often leads to network congestion, a stiff blow to user experience. To address this scalability challenge, developers and researchers have been exploring solutions that facilitate off-chain transaction processing, effectively easing the burden on the Ethereum chain.
One of the most promising projects in this regard is Polygon, which aims to scale the Ethereum network by processing transactions outside of it. By offsetting a portion of the transaction activity away from the Ethereum chain, Polygon relieves the network’s capacity constraints, creates more available space, and ultimately improves the overall user experience within the Ethereum ecosystem.
Polygon’s impressive metrics speak for themselves, with over $800 million locked into the Polygon PoS ecosystem and an astounding number of more than 290 million unique addresses actively engaging with the network. The project has become one of the most widely used protocols globally, processing over 3 million daily transactions on the average.
In this article, we delve deeper into the suite of tools offered by Polygon and explore the features that make it a compelling solution for scaling the Ethereum blockchain.
What Is Polygon?
Polygon, formerly known as Matic Network, is a suite of scaling solutions designed to address the scalability and congestion issues of the Ethereum blockchain and, thus, allow for faster and more cost-effective transactions.
Founded as Matic on October 1, 2017, by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, Polygon was rebranded in February 2021 to align with its broader vision as a multi-chain scaling framework. While its roots are in Ethereum scaling, Polygon’s scope now extends beyond just that.
Polygon takes a multifaceted approach to achieve its mission, offering a range of solutions rather than relying on a single scaling method. This flexibility allows Polygon to address both application-specific and general-purpose scaling needs and thus cater to a wide array of use cases within the Ethereum ecosystem.
The network’s most popular solutions are the Polygon PoS network and the Polygon zkEVM.
The Polygon PoS Network
Polygon PoS (Proof-of-Stake) Network operates as a standalone, permissionless public blockchain network, even though it is a scaling solution developed to address Ethereum’s scalability issues.
Unlike Layer 2 solutions that ultimately rely on Ethereum’s security, Polygon PoS can independently handle transaction processing, secure its network, and aim for efficiency. Although it has access to Ethereum’s security features, Polygon PoS maintains its security through its PoS consensus mechanism.
Polygon PoS uses the Proof-of-Stake (PoS) consensus mechanism to ensure the validity of transactions on its network and maintain its security. It boasts an impressive capacity to process up to 65,000 transactions per second (tps), which is a significant improvement compared to Ethereum’s 15 tps.
Polygon PoS also employs a network of interconnected sidechains that are compatible with Ethereum. These sidechains enable faster and cheaper transactions.
The sidechains are secured by a set of “checkpoint” validators who periodically commit the sidechain’s state to the Ethereum mainnet, ensuring the integrity of the transactions. This ultimately makes Polygon PoS a hybrid network as it integrates Proof-of-Stake and Plasma sidechain.
Before the state of the Polygon network is committed or checkpointed to the Ethereum chain, validators need to agree on the validity of the state that’s being proposed.
Validators verify the transactions and validate the state to ensure their correctness and integrity. Once consensus is reached among the validators, indicating that the proposed state is valid, it can be sent to the Ethereum chain.
The Polygon PoS network leverages shared infrastructure with Ethereum and achieves interoperability through bridges. These bridges enable the seamless transfer of assets between the Ethereum and Polygon PoS networks using a two-way bridge system.
During the asset transfer process, the assets are not physically moved but rather replicated and locked on each respective chain. This replication involves a burn and lock mechanism, where a replica of the asset is created on one chain while the corresponding asset is locked on the other chain.
This mechanism ensures that users can access and use their assets on both the Ethereum and Polygon PoS networks while maintaining the integrity and consistency of the assets across both chains.
Polygon zkEVM
Polygon zkEVM is the pioneering zero-knowledge Ethereum Virtual Machine (EVM) that has been successfully deployed on the mainnet. It leverages zk-rollups, a type of Layer 2 scaling solution, to improve the scalability of the Ethereum network.
While zk-rollups are not entirely novel, Polygon zkEVM distinguishes itself by effectively integrating zk-rollups with the Ethereum Virtual Machine.
Polygon zkEVM is an EVM-equivalent network. An EVM-equivalent network emulates the primary Ethereum network, leveraging its security measures and providing a comparable environment for deploying contracts.
EVM-compatible networks have limitations when deploying contracts originally designed for Ethereum. They usually require using a compiler to translate Ethereum programming languages into languages suitable for deployment on the new network, which might necessitate certain adjustments to ensure proper smart contract functionality.
Consequently, the integration of zk-rollups and EVMs in Polygon zkEVM represents a significant advancement in how zk-rollups are designed.
Polygon launched its zkEVM in March 2023 and is currently in the Mainnet Beta phase. Transactions on the Polygon zkEVM network are conducted using a version of the Ether (ETH) token designed for the Polygon zkEVM network.
Other Polygon Scaling Solutions
In addition to general-purpose blockchains like Polygon PoS and zkEVM, Polygon Labs offers a range of other solutions to address specific blockchain challenges. One such solution is Polygon ID, a decentralized identity platform that allows anyone to verify their identity on-chain while maintaining privacy. This technology extends beyond the Web 3 space and finds applications in traditional solutions as well, providing a secure and privacy-enhancing identity verification mechanism.
Furthermore, Polygon is actively developing Polygon Miden, a client-side solution optimized for specific use cases. Unlike other scaling solutions aimed at Ethereum network scalability, Polygon Miden is not limited to being Ethereum-equivalent.
This unique feature allows developers to explore and create blockchain solutions suited to other blockchain networks, opening up possibilities for innovation and tailored applications.
By offering these diverse solutions, Polygon positions itself as a versatile provider capable of addressing a wide range of blockchain problems. Whether it’s enhancing identity verification, exploring non-Ethereum blockchain solutions, or catering to specific use cases, Polygon aims to provide comprehensive solutions that meet the evolving needs of the blockchain industry.
Polygon MATIC Token
MATIC is the native token of the Polygon network and serves multiple purposes within the ecosystem.
Users and developers on the Polygon PoS network use it to pay transaction fees and complete transfers. Validators in the Polygon PoS consensus mechanism are required to stake MATIC tokens, while users who do not wish to become validators can delegate their MATIC tokens to validators and earn rewards in return.
MATIC is currently the sole officially recognized network token within the Polygon ecosystem, even though there are various tokens developed on the platform.
The maximum supply of MATIC tokens is fixed at 10 billion, with approximately 93% of the tokens already in circulation at present.
MATIC is deflationary in nature, as an annual burn of 27 million MATIC tokens takes place, reducing the circulating supply and potentially influencing the token’s price. At press time, Polygon trades at $0.6675 and has a market cap of $6,696,354,612.
You can hold MATIC tokens in decentralized Web3 wallets such as Metamask. Additionally, popular centralized exchanges like Binance and decentralized exchanges like Uniswap provide opportunities for the purchase and sale of MATIC tokens.
Polygon’s Unique Selling Point: A Diverse Array of Scaling Solutions
What sets Polygon apart from other scaling solutions is its wide selection of Ethereum scaling options. Unlike platforms that typically offer a single approach to scalability, Polygon provides a diverse range of solutions, including plasma sidechains, Proof-of-Stake networks, optimistic rollups, and zero-knowledge rollups.
This extensive suite of choices empowers users and developers to select the scaling solution that best aligns with their specific requirements.
Whether you need an application-specific scaling solution or a public network blockchain, Polygon has you covered with a variety of options to cater to different needs.
The abundance of scaling solutions ensures that you can find the most suitable approach for your particular use case, offering the flexibility and adaptability essential for successful blockchain implementation.
The Challenges Of Using Polygon
Despite its benefits, Polygon does come with certain inherent risks and challenges, which include:
Network Robustness is not Guaranteed
Some of Polygon Labs’ scaling solutions, such as the recently launched Polygon zkEVM network, have not yet undergone extensive testing and real-world usage like other well-established scaling solutions.
The first of its kind, Polygon’s zkEVM network is currently in its Mainnet Beta phase, making it susceptible to potential errors while also holding promise for success. The uncertainty surrounding its usability may present challenges for its widespread adoption.
Dependency on the Ethereum Network
While Polygon offers various scaling solutions, many of them are primarily designed to scale the Ethereum network. Consequently, any issues or disruptions with the Ethereum network could significantly impact the functionality and effectiveness of a substantial portion of Polygon’s scaling solutions. This dependency raises concerns about the system’s resilience and potential vulnerabilities.
Future Outlook For Polygon Scaling Solutions
Polygon Labs’ dedication to advancing Ethereum’s scalability and usability is evident through their continuous development of scaling solutions, most notably the groundbreaking zkEVMs.
Looking ahead, Polygon’s next strategic move should involve expanding beyond Ethereum to establish an interoperable network of blockchain solutions. By reducing reliance on Ethereum and creating a more inclusive ecosystem, Polygon will attract a broader audience of developers, users, and enterprises to its products.
Polygon is well-positioned to deliver the next big solution that will affect the broader blockchain ecosystem if it can capitalize on its current success.
In Conclusion,
- Polygon has emerged as a compelling solution in the quest to scale the Ethereum network and enhance its usability.
- With an impressive 290 million unique wallets engaging with the network, Polygon’s success stands as a testament to its ability to meet the rising demand for scalable and user-friendly solutions, which is crucial for broader adoption and unleashing the potential of decentralized applications.
- At present, Polygon plays a vital role in addressing scalability challenges within the expanding Ethereum ecosystem. However, its existence is not only pivotal for the current ecosystem but also holds the potential to drive the next wave of blockchain advancements.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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