Polygon (MATIC) 🟣, a Layer 2 network, has been gaining attention in the crypto space for addressing Ethereum’s scalability issues. Founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, Polygon provides a conducive environment for developers to build various infrastructures, boasting a transaction speed of about 65,000 TPS and almost zero transaction fees within its ecosystem.
The Polygon SDK is the network’s core component, supporting the development of various solutions. The network uses the Plasma Framework and Proof-of-Stake consensus mechanism, reducing energy consumption compared to Proof-of-Work blockchains.
MATIC, Polygon’s native token, is used for transaction charges within the ecosystem. There are currently 9,219,469,069 MATIC in circulation, with a maximum supply of 10,000,000,000. MATIC can be staked, used as a payment medium, or held for long-term investment.
Despite its success, Polygon faces competition from other Layer 2 solutions like Arbitrum, Immutable X, and Optimism. However, Polygon’s low transaction fees and speed give it a competitive edge.
The future of MATIC looks promising with the global adoption of the Polygon blockchain and the recent launch of its zero-knowledge Ethereum Virtual Machine (zk-EVM). However, Polygon’s heavy reliance on Ethereum and increasing competition among Layer 2 blockchains are potential drawbacks.
Despite recent underperformance, MATIC’s growth reflects Polygon’s increasing adoption and commitment to solving Ethereum’s scalability issues. 🚀📈
To dive deeper, check out the complete article: https://droomdroom.com/fundamental-analysis-of-polygon-matic/
