- The increase in blockchain transactions and the mass adoption of cryptocurrencies have created some problems for blockchains.
- Matic Network was developed for reasons of scalability and to improve networks.
- Matic Network remodeled Polygon to become Ethereum Internet of Blockchains.
- The development has attracted a large number of investors, among whom is billionaire businessman Mark Cuban.
Polygon, a network for building and connecting blockchains with new and improved technology, can’t stay out of the news because of its new developments, improvements on the Matic Network, and increase in investments, thereby growing its market capitalization.
Matic is currently the 15th largest cryptocurrency after a stellar run in recent weeks. As investors go bullish on $Matic, the token surged by 25% last week from a low day point of $1.1, climbing as high as $2.2.
The total market capitalization of $Matic is over $11 billion and it currently trades at $1.83. Polygon is backed by Coinbase and Binance with lots of big-name investors behind the solution.
Polygon: Summary and Developments
Polygon is a network solution that is made to improve decentralized applications (dApps) on the Ethereum blockchain making it faster and solving problems of limited scalability without compromising security and user experience.
Previously known as the Matic Network, its utility grew in popularity. While there is an increase in dApps and blockchain solutions, on one hand, the blockchain ecosystem on the other hand isn’t ready for huge adoption.
Matic was riddled with high gas fees and slow block confirmations both of which reduced user experience. The network aims to make interaction with the blockchain ecosystem seamless. It achieves this aim through its
Plasma development which makes transactions faster with low cost.
A Matic sidechain can perform over 65,000 transactions per block. It offers a perfect UI from mainchain to Matic chain and it’s very easy for developers to integrate it on their website. The switch to Polygon still maintained the $Matic token and Plasma while improving on the solution to make it Ethereum’s ‘internet of blockchain’.
On the Flipside
- Though lots of money is pouring into Polygon Network, the general downturn of the market will slow its growth.
- Non-dev users still find the whole system very complex.
Cuban’s Investment and the Community
Billionaire Mark Cuban has backed Polygon after his website lists it in his company’s portfolio. Mark Cuban has been a supporter of crypto with a robust portfolio of 60% bitcoin, 30% ether, and 10% in other coins.
His basketball outfit, the Dallas Mavericks still accepts payment in bitcoin, and the move to back the token has increased its value. He backed Polygon because there is a need for an improved transaction per second and low gas fees coupled with a current network effect.
The growing demand for layer 2 solutions has generated over $1 billion with 75,000 new users in just one week. The Polygon community is very robust and the team values the community’s growth.
Validators earn passive income through staking on the network. The process of being a validator is easy and open to users. Users who lock up tokens in the network and run nodes are validators.
The selection of validators is completed through an on-chain auction process on a regular basis. Holders of the token are also involved in the governance of the network.