Polygon (MATIC) is a token based on the Ethereum blockchain that was created to enable the operation of a scaling network called the Polygon Network. The Polygon project aims to provide faster and cheaper transactions on the Ethereum blockchain using Layer 2 side chains running along the main Ethereum chain. Polygon network users have the option to deposit Ethereum tokens (ETH) in a polygon smart contract, interact with them within the polygon system, and then withdraw them back into the main Ethereum chain. The MATIC token is used to pay transaction fees as well as participate in the proof-of-stake consensus.
Polygon is therefore one of the cryptocurrency projects that are Ethereum scaling solutions. This project solves the problems of high fees and slow transactions, but maintains strict security standards. This multi-chain and decentralized system is largely similar to other existing Ethereum scaling networks, but essentially has at least three main advantages:
- is able to take full advantage of Ethereum's network effects
- is more open and more powerful
- is inherently safer