What Is Polygon?
Polygon, initially known as Matic in 2017, is a blockchain platform aiming to create a multi-chain system compatible with Ethereum. The native token of Polygon is MATIC, an ERC-20 token that enables compatibility with other Ethereum cryptocurrencies. Polygon is widely used in decentralized applications (dApps) such as Defi, DAOs, and NFTs.
Background
Four Mumbai-based software engineers founded the Matic Network in 2017 and rebranded into Polygon Technology in 2021. Polygon acquired the Mir blockchain network in December 2021 for 250 Million MATIC tokens. Despite a security vulnerability that resulted in the theft of 801,601 MATIC tokens, Polygon managed to raise $450 million by selling MATIC tokens in a round led by Sequoia Capital India, Tiger Global, and Softbank Vision Fund in February 2022.
How It Works
Polygon operates with a modified proof of stake consensus mechanism, enabling a consensus with every block. This method requires network participants to stake their MATIC tokens in exchange for the rights to validate Polygon network transactions. The successful validators are rewarded with MATIC tokens. Polygon’s main aim is to address the high transaction fees and slow processing speeds within the Ethereum platform.
Key Takeaways
- Polygon, initially known as Matic, is a blockchain platform aiming to create a multi-chain system compatible with Ethereum.
- Polygon’s native token is MATIC, an ERC-20 token that enables compatibility with other Ethereum cryptocurrencies.
- Founded by four Mumbai-based software engineers, Polygon rebranded from the Matic Network in 2021.
- Despite a security vulnerability, Polygon raised $450 million by selling MATIC tokens in a round led by Sequoia Capital India, Tiger Global, and Softbank Vision Fund in February 2022.
- Polygon operates with a modified proof of stake consensus mechanism and aims to address the high transaction fees and slow processing speeds within the Ethereum platform.
