Polygon matic

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Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. It’s designed to alleviate Ethereum’s scalability and usability issues without compromising decentralisation.

For now, Polygon is not totally completely connected to Ethereum, but is in the process of doing so (see below). For this reason, you’ll see Polygon’s main blockchain, Polygon PoS, described as a ‘sidechain’.

Polygon launched in 2017 as Matic Network before rebranding in February 2021. Regardless of the name, the project has always existed to help Ethereum scale.

Polygon uses Polygon SDK, a flexible network that enables interoperability between its 2 core blockchain solutions: secured chains and sidechains.

Polygon’s solution is to create this framework to build and connect Ethereum-compatible blockchain networks. This will turn it into a multi-chain system, similar to Polkadot or Cosmos. Polygon lists some of the upsides separating them from other ecosystems are their ability to inherent Ethereum’s network effects, greater security properties and a more open and powerful ecosystem.

Its prime products include:

• Polygon PoS: A non-Ethereum network—currently in the process of being transited towards becoming more aligned and backed by Ethereum.
• Polygon zkEVM: A 100% secured Ethereum network compatible with Ethereum’s design (the EVM).
• Polygon Miden: A 100% secured Ethereum network that is incompatible with Ethereum’s EVM, using its own design.
• Polygon CDK: A toolset and framework to help build custom, application-specific chains backed by Polygon & Ethereum.
• Polygon ID: A digital identity system.

Several high-profile names from the Ethereum ecosystem are advising the Polygon team: Hudson Jameson (Ethereum Foundation), Ryan Sean Adams (Bankless), Anthony Sassano (The Daily Gwei), Pete Kim (Coinbase) and John Lilic (ex-ConsenSys).

Polygon Today

Polygon is currently undergoing a major network change in 2024 known as “Polygon 2.0”, which will make major changes to Polygon and MATIC, such as:

• Renaming MATIC to POL and giving its native token more productive power.
• Transition it’s PoS sidechain to be increasingly secured by Ethereum.
• Decentralise core governance.
• A focus on allowing “value” to flow natively across its many different networks.

Polygon’s native token is MATIC. As of this writing, 4,966,397,110 MATIC are in circulation with a maximum supply of 10,000,000,000.

MATIC is an ERC-20 token used to pay for services in the Polygon ecosystem. For example, transaction fees are paid in MATIC. It also serves as a settlement currency between users operating in the ecosystem. MATIC owners participate in the PoS consensus as MATIC is used to pay staking rewards.

The composition of MATIC’s total supply is as follows: ecosystem (23%), foundation (21.9%), Launchpad sale (19%), team (16%), network operations (12%), advisors (4%), seed round (2.1%) and early supporters (1.7%).