Polygon (MATIC), formerly known as Matic Network, is a layer 2 scaling solution built on the Ethereum blockchain that enhances its flexibility, scalability and sovereignty. It aims to address the limitations of the Ethereum platform such as high transaction fees and slow processing speeds. Polygon can deploy existing blockchain networks and custom blockchains, enable communication between Ethereum and other blockchains, and help existing blockchain networks to become compatible with Ethereum. Polygon’s blockchain processing time is 2.1 seconds and transaction fees are always low. Polygon’s Reddit hype has surged over the last few days, causing its price to rally.
Hey guys, what is up, it’s dusty here and welcome back to another crypto video. Today, we’re taking a look at Polygon Matic.
Background on Polygon Matic
Polygon, currently ranked 11th in the cryptocurrency rankings and sitting at roughly 93 cents, is one of the best cryptocurrencies in the space. Dubbed as the “Ethereum’s internet of blockchains,” Polygon was launched as Matic and operates using the Ethereum blockchain. The platform connects Ethereum-based projects to one another, increasing the flexibility, scalability, and sovereignty of a blockchain project while still affording the security, interoperability and structural benefits of the Ethereum blockchain. Polygon is a layer two infrastructure on the Ethereum blockchain and has a modified proof of stake system.
The Advantages and Disadvantages of Polygon Matic
Polygon Matic has several advantages compared to Ethereum. Firstly, the ability to process transactions quickly using a consensus mechanism that completes the transaction confirmation process in a single block. This modified proof of stake system helps to maintain fast transaction processing speeds. Polygon’s average blockchain processing time is 2.1 seconds, and the transaction fees are always low. They keep the fees with a typical transaction being roughly one cent which is very juicy.
However, one of the major disadvantages is that it’s not an autonomous blockchain, as it is a layer 2 built on Ethereum. So, if anything crazy happens to Ethereum, Polygon could be affected too. Also, some people are saying that there’s not that much happening for Matic, the token. It was actually called Matic before, but then its name was changed to Polygon. It has had some crazy upgrades and is mostly used on top of the platform.
Polygon Matic’s Position in the Market
Polygon Matic has gained popularity as a platform for several companies, such as Reddit and Starbucks. Instead of using Ethereum on its own, they have chosen to use the layer on top, which is Polygon, and built their platforms using Polygon technology because it’s still interoperable with the entire network from Ethereum.
The Reddit hype for Polygon has been increasing for the past few days after they used Polygon to mint collectible NFT avatars. This hype has contributed to the growth of Polygon’s price. BitPay, which is the main provider for utilizing cryptocurrencies in your day-to-day purchases because they basically change it over to fiat so that any merchant can accept it, will introduce USDC and ETH payments on the Polygon Network. This will increase the activity on the Polygon Network.
Should You Buy Polygon Matic?
This video is not financial advice, but Polygon Matic has gained popularity among financial institutions. It has also seen some crazy growth in terms of price because of the potential benefits of adopting Polygon tech. Warren Buffett’s fintech firm, New Bank, has even announced the launch of a new coin token on the Polygon blockchain. So, it might be a good idea to consider Polygon Matic as an investment opportunity.