Summary

So far, we can reasonably assume that the future development trend is multi-chain. It is likely that the future will no longer be dominated by one blockchain, but by a large number of interconnected networks, each with unique properties, trust assumptions, performance, and security.

Polygon strives to make future trends a reality by providing a framework to create scaling solutions that are compatible with Ethereum. Its proof-of-stake sidechain has attracted attention from the Bitcoin and cryptocurrency communities. Let’s take a closer look below.

Introduction

The long-awaited Ethereum expansion roadmap is finally Towards maturity, the Polygon project is indispensable.

You may have heard of Cosmos and its vision of the "Internet of Blockchains", that is, through the inter-blockchain communication protocol (IBC), information can be communicated between different blocks executing the protocol. Inter-chain transmission.

Polygon has a similar vision, but has chosen to tailor the concept specifically for the Ethereum ecosystem, hoping that developers can easily launch Ethereum-compatible scaling solutions, or even standalone blocks. chain.

The project was initially called "MATIC Network". As the scope of the project expanded from a single Layer 2 (L2) solution to a "network of networks", the name was eventually changed to "Polygon".

What is Polygon (MATIC)?

Polygon is a framework for creating Ethereum-compatible blockchain networks and scaling solutions. It's more of a protocol than a single solution. Therefore, one of the main products in this ecosystem is the Polygon SDK. It assists developers in creating Ethereum-compatible networks.

The Polygon network that everyone has heard of is a proof-of-stake (PoS) side chain, and it is also one of the first online products in the Polygon ecosystem. The essence of a side chain is a parallel chain connected to another blockchain.

Sidechains have many advantages, the most significant of which is improved transaction throughput and low fees. Users who have used the Polygon network must have a deep understanding: compared with Ethereum, its transaction speed is amazing and the cost is extremely low. Even so, there are some trade-offs in some areas to achieve such performance. We will introduce it later.

Polygon supports the Ethereum Virtual Machine (EVM), and existing applications can be migrated to it relatively easily. In addition to getting an experience that rivals Ethereum, users can enjoy the high throughput and low fees mentioned above.

So, what can users do with Polygon? The answer is undoubtedly an Ethereum-like experience at lower fees and faster speeds. Polygon has deployed some of the most popular decentralized finance (DeFi) DApps, such as Aave, 1INCH, Curve, and Sushi. Of course, there are also some native apps that are exclusive to Polygon, including QuickSwap and Slingshot.

Under the leadership of founders Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic, Polygon has grown to this day.

How does Polygon work?

The Polygon framework supports two main types of networks compatible with Ethereum: secure chains and independent chains. For example, "Rollup" (Rollup) is a security chain, while side chains are independent chains.

The security chain relies on the chain infrastructure it is attached to, so there is no need to apply a proprietary security model. In contrast, independent chains must ensure security themselves. As a result, secure chains typically provide a higher level of security, while standalone chains offer greater flexibility based on specific needs.

What’s going on with the Polygon network? The Polygon sidechain is secured by a dedicated set of validators (validator pool), which must submit checkpoints to Ethereum from time to time. Therefore, some people believe that sidechains are not a "pure" Layer 2 solution. They must be responsible for their own security and will not rely on Ethereum's security. This is probably its most significant difference, and we will introduce it in detail later when we discuss "summary".

In the future, the Polygon platform hopes to support a wider range of scaling solutions, including: zero-knowledge rollup (ZK Rollup), optimistic rollup (Optimistic Rollup) and Validum chain. As extended solutions become available, developers will have more tools to develop innovative applications, solutions and products. Additionally, we expect all solutions to be compatible with existing Ethereum tools and wallets (e.g. MetaMask).

Use cases of MATIC token

Although the MATIC network has been renamed, the name of MATIC token is still used to date. Through the MATIC token, users can pay for gas in the network and participate in governance. To stake MATIC tokens, you can do so through Binance Finance or the MATIC web wallet developed by the Polygon team.

Polygon Bridge

Polygon Bridge is the most convenient way to transfer funds from other blockchain networks to Polygon sidechains. Convenient way. Please note that bridge transactions take place on mainnet, so mainnet transaction fees are still payable.

However, as long as the bridge transaction is completed, you can enjoy the low fees and fast transactions brought by Polygon. In addition, some centralized exchanges (CEX) also provide direct withdrawal services to the Polygon network.

Comparison between side chains and aggregation

Generally speaking, can side chains be classified as Layers like aggregations? 2 solutions are currently inconclusive. If you hope to navigate the multi-chain world and consider the various pros and cons, you must understand the difference between the two.

The trust assumptions, security, performance, and user and developer experience are different. As a security chain, Aggregation inherits most of the security of Ethereum and can be called the most potential Layer 2 expansion solution.

However, this is not the case with other solutions such as Polygon sidechains. This is not to say that sidechains are unsafe. If bad actors collude, it is still possible (at least in theory) to control the entire network. Of course we don't want this to happen, but we should nip it in the bud. Using sidechains creates trust issues that involve, in addition to network validators, the bridging between the two chains.

Other pros and cons are worth weighing. When using the Ethereum mainnet, although transaction fees are high and transaction speeds are slow, security is the strongest and all parties have little need to worry about trust issues.

If you use aggregation, you pay fewer fees, have relatively higher security, and have shorter transaction times. If you use sidechains, although the fees paid are only a small part of the total, security cannot be guaranteed.

Which solution is better? There is no easy answer to this question. Each solution has its own specific use case and complements each other, ultimately forming a valuable ecosystem.

For example: The reputation system of a certain social media company needs to achieve extremely high transaction throughput at ultra-low fees, but it is not an important infrastructure in itself and therefore does not require the highest level of security. In this case, it is worth sacrificing some security in order to achieve performance.

On the other hand, if a country's treasury funds are stored on the blockchain, the highest level of security should be provided at all costs, regardless of lightning-fast transaction speeds.

Developers and project teams have been experimenting and studying how to make all building blocks fit into the big picture. Scalability is definitely a focus, after all, scaling solutions are used for many different use cases across a variety of industries.

Summary

Polygon is a framework for creating Ethereum-compatible blockchain extensions solution. The Polygon network is a proof-of-stake (PoS) side chain that has attracted a considerable number of users in the market due to its advantages of fast transactions, low cost, and compatibility with the Ethereum Virtual Machine (EVM).

Polygon hopes to provide more scaling solutions in the future, including zero-knowledge rollup (ZK Rollup), optimistic rollup (Optimistic Rollup), and independent blockchains, to help create a more stable blockchain for Ethereum. A vibrant Layer 2 interconnection ecosystem.