Polygon is a “sidechain or “layer two” scaling solution that operates alongside the Ethereum blockchain, allowing for low fees and speedy transactions. Staking, transferring of payments, and more can be done with the network’s native token, MATIC. MATIC can be sold or bought via exchanges like Coinbase or decentralized blockchain DeFi platforms. Using an application like Immediate Bitcoin official website, you can check various cryptocurrency prices and choose the best ones to invest in.
What Is MATIC?
The polygon network has its own cryptocurrency known as MATIC. This token is used to pay fees on the web and as a form of governance. You may be wondering what governance is?
Governance is straightforward; it allows holders of a coin to vote on changes that need to occur on the Polygon network.
During the early stages of Polygon’s development, the name MATIC was conceived. Developers first launched the blockchain as the MATIC Network in October 2017 and then rebranded to Polygon in 2021.
How Does Polygon Work?
If you can picture an express train on the subway, you may better understand what Polygon is. The express train travels the same route as the regular train, making fewer stops, hence getting to its destination faster.
We hope the above analogy can give you some clarity on how Polygon runs alongside the Ethereum blockchain. Polygon uses various advanced technologies that link it to the Ethereum mainnet and create a speedy parallel blockchain.
Polygon uses the Proof of Stake consensus mechanism to secure the network and create new MATIC. That means there is only one way to earn money on MATIC, and that is by staking your funds with the network.
You can also purchase and hold MATIC or Polygon through other centralized and decentralized exchanges.
With the rate of crypto adoption growing astronomically, it would be silly not to learn more about it.
Validator and Delegators
Delegators and validators make the Polygon network move, and in this section, we would like to discuss the topic more. Below we have broken down each role and explained it in depth for educational purposes.
These individuals do the heavy lifting on the network. Validators verify new transactions and add them to the blockchain by staking their funds. In exchange, they may receive newly created MATIC and a cut of the fees.
If you want to become a validator, you need to be aware that you must run a full-time node, and that means you need to stake your MATIC on the network through your own computer or mining device.
It’s good to note that you could lose some of your staked MATIC tokens if you act maliciously or make an error.
These people stake their MATIC indirectly via a trusted validator. This requires a much lower commitment than staking and is one of the preferred ways people like making money on the network.
However, delegating doesn’t come without its risk. If you pick an unscrupulous validator who makes errors or acts maliciously, you could lose all or some of your staked MATIC.
How Do You Use the Polygon Network?
The Ethereum and Polygon network are strikingly similar regarding what you can do on it. One of the primary differences is that the fees on the Polygon network cost a fraction of a cent.
You can test out decentralized exchanges like SushiSwap or QuikSwap, yielding generating saving and lending protocols like Aave, “no-loss prize games” like Pooltogether, and NFT marketplaces OpenSea.
The options are truly endless when it comes to the uses cases of the Polygon network. Don’t you think it’s time to check out so that you can move into the future with this wondrous technology?