Polygon is a Layer 2 blockchain designed to improve scalability and lower transaction costs on the Ethereum network. Formerly called MATIC Network, it was originally launched as a sidechain of Ethereum. Its native token is MATIC.
Polygon lets you create customizable sidechains that benefit from Ethereum's security while increasing network speed and capacity. These sidechains can be optimized for different use cases like speed, security, or low transaction fees. Because Polygon can perform transactions much faster and charges lower fees than Ethereum, it makes decentralized apps (dApps) faster, cheaper to build, and more user-friendly.
Polygon uses a Proof-of-Stake (POS) consensus model, where token holders stake their tokens to validate transactions and secure the network. MATIC is also used to pay network fees, provide governance voting rights, and reward validators with newly minted tokens.
Polygon expands what the Ethereum ecosystem was previously capable of by solving some of its biggest limitations. Here are some of its key benefits:
Scalability: While Ethereum is capped at 30 transactions per second (TPS), Polygon sidechains have the potential to execute up to 65,000 TPS.
Speed: Confirming Ethereum transactions takes over a minute. Polygon typically confirms transactions under 5 seconds, up to 100x faster. That's a huge speed boost that makes decentralized apps more responsive and less frustrating to use.
Affordability: Transaction fees on Ethereum can soar between $10 to $100, which isn't ideal for small transactions. With fees less than $0.01 on average, Polygon makes everyday microtransactions possible and allows developers to create more affordable applications.
Security: Since Polygon is built on Ethereum, its network is able to benefit from Ethereum’s security mechanisms. Using zero-knowledge rollups speeds up transactions while keeping them secure.
Integration: Moving assets and data between Ethereum and Polygon is quite easy. Many apps and wallets that support Ethereum are also compatible with Polygon.
By making decentralized apps fast, cheap, and easy to build, Polygon gives Web3 projects a smooth user experience that's almost as good as their Web2 counterparts.
Despite Polygon’s many benefits, it still has several limitations. Since Polygon relies on Ethereum for security and decentralization, any issues with Ethereum could potentially impact Polygon’s operations. Also, as a newer platform compared to some others in the crypto space, there's still some uncertainty about how Polygon will evolve and stand the test of time.
Overall, Polygon is a good alternative if you want to enjoy the benefits of the Ethereum ecosystem while avoiding high gas fees. While Polygon does have disadvantages, it shows a lot of potential for further development and adoption in the future.
