Polygon MATIC

Polygon is a Layer 2 scaling solution for the Ethereum blockchain that aims to improve transaction speeds and cost. Polygon achieves this using Ethereum-compatible sidechains. Polygon side chains can run computations separately from the Ethereum blockchain, while benefiting from its security. A decentralized network of Proof-of-Stake (PoS) validators verifies transactions on Polygon's main side chain.

MATIC is the native token of the Polygon network. It is used for securing the chain through staking, participating in network governance, and for paying transaction fees. It can also serve as a medium of exchange for buying various goods and services.

Crypto investors can purchase Polygon MATIC digital assets from a wide range of mobile apps, centralized, and decentralized exchanges. MATIC tokens have a max supply of 10 billion coins, with over 9.2 billion tokens already in circulation.

Since its creation, Polygon has become a pioneering Layer 2 project in the crypto market with a current market capitalization of around $8 billion.

Who created Polygon?

A team of developers - Jaynti Kanani, Sandeep Nailwal, Mihailo Bjelic, and Anurag Arjun created the Polygon blockchain project. The need to address the challenges faced by Ethereum and create a scalable and efficient blockchain network motivated the team to create Polygon.

Polygon (MATIC) initially launched in 2017 as the Matic Network, but later rebranded to Polygon in February 2021. Over the years since Polygon (MATIC) crypto assets first launched, it has become one of the leading Ethereum scaling solutions in the crypto space.

How does Polygon (MATIC) work?

Polygon, previously known as Matic Network, is a Layer 2 solution that operates on top of Ethereum's blockchain network technology. The Polygon network employs a Proof-of-Stake consensus mechanism. Validators stake MATIC tokens to secure the network and validate transactions. This feature enables Polygon to have significantly lower transaction costs and a higher transaction throughput, compared to Bitcoin's Proof-of-Work mechanism.

The proof-of-stake consensus mechanism is an important part of Polygon's blockchain technology. It performs the difficult task of making sure all validators can achieve distributed agreement on new data entering the blockchain.

MATIC functions as the native currency on the Polygon crypto project, allowing users to pay for transaction fees and access other network services. MATIC holders can participate in staking to receive rewards and secure the network.

Transactions on Polygon take place through its Polygon Commit Chain. This feature serves as a bridge between the Ethereum network and Polygon's Layer 2 solutions, and guarantees faster transaction throughput and cheaper fees.

Users can store Polygon MATIC tokens in wallets that support the ERC-20 token standard, such as Ledger, MetaMask, and Coinbase Wallet. Staking is a vital feature of the Polygon network. It's responsible for motivating token holders to secure the network and participate in its governance while earning rewards.

MATIC price

MATIC's asset price has experienced fluctuations in its history. The coin's average price in 2020 was around $0.01, reaching an all-time high of $2.68 by May 2021. The coin's price later experienced a dip in trading volume during a crypto winter, with its minimum price level dropping to $0.71. As of now, the current price of the Polygon network token is $0.53. There are varying opinions on its future coin price predictions. Some expect the coin's value to appreciate in the long run, while others expect the value to decrease. 

The crypto price of MATIC is subject to various factors. These include market demand and supply, cryptocurrency news, bull and bear markets, technological advancements, and adoption of the Polygon network. The supply and demand dynamics of the entire cryptocurrency market play a crucial role in determining the price of MATIC. Positive news, such as new partnerships or regulatory developments, could lead to an increase in demand and, consequently, the price of MATIC. Technological advancements within the Polygon network could also affect the MATIC coin price, as a more efficient network could attract more users. In turn, these improvements could result in increased demand and trading volume. Adoption of the Polygon network Layer-2 solution could also impact the price of MATIC by attracting more developers and businesses.