Polygon

Understanding Polygon

Polygon, formerly known as Matic Network, is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. Polygon combines the Ethereum blockchain's best features with robust tools that support multi-chain Ethereum DApps (Decentralized Applications). This amalgamation of features provides a multi-fold increase in speed, efficiency, and scalability while retaining the security level and liquidity of the Ethereum blockchain.

The Core Purpose of Polygon

The Polygon project exists to overcome some significant barriers associated with Blockchain, namely high fees and slow block confirmations. Polygon aims to transform Ethereum into a multi-chain system, likened to 'internet of blockchains' - a goal notably shared with the Polkadot and Cosmos projects. Furthermore, Polygon also supports stand-alone networks, providing developers with flexibility when creating their decentralized applications.

How Does Polygon Function?

Polygon employs a unique combination of Layer 2 sidechains and standalone chains. Layer 2 chains are blockchains that run alongside the Ethereum main chain. They rely on the main chain for security but can process transactions and store data more efficiently. On the other hand, standalone chains possess their own security and operate separately. Polygon's ability to provide both types of chains offers a golden mean – security and scalability.

Polygon's Native Cryptocurrency

The native cryptocurrency of Polygon is MATIC. The MATIC token is vital to secure the system and enable governance. Users can stake their MATIC tokens to confirm transactions and earn rewards, or they can use them to vote on governance matters - thus widening the democratic scope within the Polygon ecosystem.

In Conclusion

In essence, Polygon is constructing a layered system around Ethereum to enhance the blockchain's performance. It strives to catalyze the next wave of adoption for Decentralized Finance (DeFi), Decentralized Autonomous Organisations (DAOs), and much more. By creating a flexible and adaptable framework, Polygon is bringing a new dawn of multi-chain innovations.