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A Guide to Ethereum Scaling Solutions: The Polygon Project Explained

By admin on January 17, 2023

Reading Time: 3 minutes

Ethereum has opened up their blockchain technology and they are happy to allow others to make use of the blockchain tech running their software. This is partially what the Polygon project is about, as it uses the Ethereum network in a slightly different way.

As cryptocurrencies become more mainstream and are used for virtually everything in daily life now, there are more specialist varieties becoming available. One that has been discussed a lot is being called a “layer two” or “sidechain” solution, which goes some way to explaining Polygon. There are a lot of people talking about this crypto offering already, and even specific businesses such as polygon casinos accepting the MATIC currency that is part of Polygon.

Polygon project explained

The growing popularity of applications using blockchain has rapidly increase the number of transactions performed, which also leads to the need for transaction fees. They’re not always small and can actually get to the point where they cost more than is viable. For smaller investments and moving currency around it can be prohibitive, so Polygon is designed to be a solution.

It is described as “layer two” or even colloquially called “sidechain”. It results in lower costs as it runs as a parallel blockchain, running next to the Ethereum blockchain used for their currency.

To actually use Polygon, you need to “bridge” your currency to turn it into the specific Polygon currency which allows you to use many crypto applications, including things such as casinos and even games like Pirates 2048.

The system interacts with the main Ethereum blockchain but runs alongside it, similar to a subway train running next to the main train, with fewer stops.

Understanding MATIC

Once you start to dig around in the world of Polygon, you will realize that there is another term to get used to: MATIC. MATIC is the cryptocurrency that runs within Polygon. It is what is used to pay the fees on the network. If you want to use a coin exchange, then you can also buy and sell the coin like you would any other. When you are learning to invest, you will need to work out how to buy and sell, and in crypto that means a coin exchange.

MATIC also provides more governance. which means that those who hold the currency get to vote and approve of any changes that happen on the network. When Polygon was first in the works it was actually called “Matic Network” and only changed to Polygon in 2021.

The Polygon network

The network analogy of a train line is a good one to help in understanding the way the technology works. If Ethereum is the local train with all the stops so that everyone can get on and off, Polygon is like the speed train.

In order to create MATIC, Polygon uses a consensus mechanism and MATIC holders can “stake” currency to make more.

Validators are one of the main roles you can play, as these verify the new transactions in return for some of the newly created currency. In a similar way to how other currencies use mining, validators run a node that helps in the process. This needs to be reliable and used responsibly, and your staked currency isn’t always safe if it isn’t.

There is also another way to stake. You can become a delegator. This requires less research and costs less, as you stake via someone who is already a trusted validator. You’re effectively backing those activities and can make a return in the process.

Polygon projects

Due to the fact that Polygon is very scalable and the gas fees are low, a lot of developers are using it to make apps, such as the games and casinos mentioned. Things like QuickSwap allow their users to trade ERC20 assets rapidly. It is a decentralized exchange (DEX).

Tetu is also a Web 3 management tool that gives investors a way to receive a stable yield over time. It is totally built on Polygon.

There are many different Polygon projects that are being developed as the solution from Ethereum is very popular and seems to solve some of the problems people in the industry are frequently experiencing.

Lots of games actually allow you to earn money by playing, using coins such as Polygon MATIC. This number is also likely to grow in the future as more people embrace the system and the way it works.

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The Lazy Trader is a fund-level trader who trades for no more than ten minutes a day.

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The Lazy Trader is a fund-level trader who trades for no more than ten minutes a day.

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