Known as Matic Network until February 2021, Polygon is a protocol and platform for building Ethereum-compatible blockchain networks. The project was launched in 2017. The Polygon platform enables blockchain networks to connect and scale.
It uses the Ethereum blockchain and connects Ethereum-based projects. When a user sends a transaction on the Polygon network, it is routed through a system of Layer 2 chains. These chains offer high scalability and low transaction fees. The Polygon platform seeks to solve the Ethereum network's scalability problem.
Polygon's native token was originally called Matic but was renamed MATIC in February 2021. The token is an ERC-20 token used to govern and secure the Polygon network and pay network transaction fees. By holding and staking MATIC tokens, users can earn rewards for participating in Polygon's consensus mechanism.
Polygon operates on a modified proof-of-stake consensus algorithm. The validators on the Polygon network are chosen through a process called "stake-dropping." In stake-dropping, users who wish to become validators submit bids, or stakes, of MATIC tokens. The bids are then ranked according to their size. The top bidders become the validators on the Polygon network.
Polygon's goal is to "enable internet scale adoption of blockchain." The project aims to provide a platform that is easy to use and can support many transactions. Polygon also wants to make it easier for developers to build on the Ethereum blockchain.
Before investing in any cryptocurrency, it's essential to research the project and understand the risks. Polygon is a complex project with a number of moving parts. As with any investment, there is always the potential for loss.
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