Polygon (blockchain)

Last updated
Polygon
Polygon Blockchain Matic Logo.svg
Denominations
Code$MATIC
Previous namesMatic Network
Development
Original author(s)Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, [1] Mihailo Bjelic [2]
White paper github.com/maticnetwork/whitepaper
Code repository github.com/maticnetwork/
Development statusActive
Developer(s) Polygon Technology
Source modelOpen source
Ledger
Ledger startJune 1, 2020;3 years ago (2020-06-01)
Block time2.3 seconds
Block explorer polygonscan.com
Website
Website polygon.technology

Polygon (formerly Matic Network) is a blockchain platform which aims to create a multi-chain blockchain system compatible with Ethereum. As with Ethereum, it uses a proof-of-stake consensus mechanism for processing transactions on-chain. Polygon's native token is named MATIC. Matic is an ERC-20 token, allowing for compatibility with other Ethereum cryptocurrencies. It is operated by Polygon Labs.

Contents

Polygon is used in decentralized applications (dApps) such as Defi, DAOs, and NFTs.

History

Founding

The blockchain company Polygon was originally known as Matic Network. The Matic Network was launched in 2017 by four Mumbai-based software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. [3]

Rebranding

In February 2021, the MATIC Network underwent a significant rebranding to become Polygon Technology. [4] This strategic shift aimed to transform the project from a single Layer 2 scaling solution to a comprehensive platform capable of integrating multiple Layer 2 scaling solutions and standalone blockchains into a coherent and interoperable system. [5]

   The rebranding to Polygon marked an expansion of the original vision. While MATIC Network was primarily focused on providing a singular scaling solution using Plasma chains, Polygon aimed to create an entire suite of Layer 2 scaling solutions. This included not only Plasma chains but also rollups (Optimistic Rollups and ZK-Rollups), sidechains, and other technologies designed to enhance Ethereum’s scalability and user experience. [6]

   Polygon sought to develop a multi-chain ecosystem, akin to an "Internet of Blockchains." This approach allows different blockchains to interconnect and communicate seamlessly, fostering greater interoperability and collaboration across various blockchain networks. Polygon’s framework facilitates the creation of interconnected blockchain networks, each optimized for specific use cases.

   The rebranding aimed to attract a broader developer community by providing more tools and resources. Polygon offers enhanced development capabilities, enabling developers to build decentralized applications (dApps) with improved scalability, lower transaction costs, and a better user experience.

   With the rebranding, MATIC continued to serve as the native token, maintaining its critical roles in network governance, staking, and transaction fee payments. Token holders can participate in the decision-making process regarding network upgrades and changes, contributing to the platform's decentralized governance model. [7]

   Polygon’s rebranding included efforts to forge new partnerships and expand its ecosystem. By collaborating with various projects and developers, Polygon aimed to accelerate the adoption of its scaling solutions and broaden its impact on the Ethereum ecosystem and beyond.

The rebranding to Polygon Technology has had a significant impact on the project's trajectory. It has positioned Polygon as a leading solution in the blockchain space for scalability and interoperability. The broader vision and expanded capabilities have attracted numerous projects and developers, solidifying Polygon’s role as a pivotal player in the development of scalable blockchain infrastructure.

Polygon’s rebranding has also led to increased market visibility and adoption of the MATIC token, as the platform continues to address key challenges in the blockchain industry, such as high transaction fees and network congestion on Ethereum.

Acquisition

In December 2021, Polygon acquired the Mir blockchain network for 250 million MATIC tokens, with the tokens having a value of around $400 million at the time of the deal. ZK-rollups were intended to offload data from Ethereum to reduce fees and speed-up the transaction process while maintaining security. [8] [9]

Theft of MATIC tokens

In December 2021, Polygon disclosed a security vulnerability that resulted in the theft of 801,601 MATIC tokens. [10]

Important events

Technology

Polygon uses a modified proof of stake consensus mechanism that enables a consensus to be achieved with every block. Achieving consensus using traditional proof of stake requires processing many blocks to achieve consensus. The proof of stake method requires network participants to stake—agree to not trade or sell—their MATIC tokens, in exchange for the right to validate Polygon network transactions. Successful validators in the Polygon network are rewarded with MATIC tokens.

The Polygon network aims to address problems within the Ethereum platform, namely high transaction fees and slow processing speeds.

Partnerships

  1. Meta : In 2023, Meta (formerly Facebook) partnered with Polygon to launch its NFT platform, enhancing security and efficiency for digital asset trading within the Metaverse.
  2. Adidas : Adidas collaborated with Polygon to introduce its NFT platform, Adidas Originals, in February 2023, providing a secure and efficient way for customers to engage with digital assets.
  3. The Walt Disney Company : Polygon was selected for Disney's Accelerator Program in 2022, focusing on the development of augmented reality, NFTs, and artificial intelligence within Disney's digital ecosystem. [23]
  4. DraftKings : DraftKings integrated with Polygon in 2022 to power its NFT marketplace, allowing users to participate in digital sports entertainment at reduced costs and faster transaction speeds.
  5. Immutable X : In 2023, Polygon partnered with Immutable X to enhance the Web3 gaming ecosystem, simplifying the process for game developers to adopt blockchain technology.
  6. Visa and Mastercard : Both financial giants have collaborated with Polygon to explore the use of blockchain for improving the speed and efficiency of their payment networks.
  7. Uniswap : Uniswap, a leading decentralized exchange, integrated with Polygon in 2021. This partnership enables users to swap ERC-20 tokens more efficiently and at lower costs. [24]
  8. Aave : Aave, a decentralized lending protocol, integrated with Polygon in 2021, providing users with cost-effective and fast access to its lending service.
  9. Samsung : In 2022, Samsung partnered with Polygon to power its NFT platform, expanding the reach of blockchain technology in the consumer electronics sector.
  10. Formula 1 : Polygon was chosen to support Formula 1's NFT platform, showcasing its ability to handle large-scale digital asset transactions.

Related Research Articles

<span class="mw-page-title-main">Ethereum</span> Open-source blockchain computing platform

Ethereum is a decentralized blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.

A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization managed in whole or in part by decentralized computer program, with voting and finances handled through a blockchain. In general terms, DAOs are member-owned communities without centralized leadership. The precise legal status of this type of business organization is unclear.

A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Since each block contains information about the previous block, they effectively form a chain, with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

Hyperledger is an umbrella project of open source blockchains and related tools that the Linux Foundation started in December 2015. IBM, Intel, and SAP Ariba have contributed to support the collaborative development of blockchain-based distributed ledgers. It was renamed the Hyperledger Foundation in October 2021.

A decentralised application is an application that can operate autonomously, typically through the use of smart contracts, that run on a decentralized computing, blockchain or other distributed ledger system. Like traditional applications, DApps provide some function or utility to its users. However, unlike traditional applications, DApps operate without human intervention and are not owned by any one entity, rather DApps distribute tokens that represent ownership. These tokens are distributed according to a programmed algorithm to the users of the system, diluting ownership and control of the DApp. Without any one entity controlling the system, the application is therefore decentralised.

<span class="mw-page-title-main">Cardano (blockchain platform)</span> Public blockchain platform

Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, ADA.

<span class="mw-page-title-main">Non-fungible token</span> Unique and non-interchangeable data

A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. Initially pitched as a new class of investment asset, by September 2023, one report claimed that over 95% of NFT collections had zero monetary value.

<span class="mw-page-title-main">The Open Network</span> Blockchain network originally developed by Telegram

The Open Network is a decentralized computer network consisting of a layer-1 blockchain with various components. TON was originally developed by Nikolai Durov and the messaging platform, Telegram and now embraced by a global community of independent contributors.

<span class="mw-page-title-main">Tron (cryptocurrency)</span> Blockchain computing platform

TRON is a decentralized, blockchain-based operating system with smart contract functionality, proof-of-stake principles as its consensus algorithm and a cryptocurrency native to the system, known as Tronix (TRX). It was established in March 2014 by Justin Sun and since 2017 has been overseen and supervised by the TRON Foundation, a non-profit organization in Singapore, established in the same year. It is open-source software.

<span class="mw-page-title-main">Avalanche (blockchain platform)</span> Open-source blockchain computing platform

Avalanche is a decentralized, open-source proof of stake blockchain with smart contract functionality. AVAX is the native cryptocurrency of the platform.

Decentralized finance offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain, mainly Ethereum. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks. Some applications promote high-interest rates but are subject to high risk. Coding errors and hacks have been common in DeFi.

<span class="mw-page-title-main">Uniswap</span> Decentralized cryptocurrency exchange

Uniswap is a decentralized cryptocurrency exchange that uses a set of smart contracts to create liquidity pools for the execution of trades. It is an open source project and falls into the category of a DeFi product because it uses smart contracts to facilitate trades instead of a centralized exchange. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. As of October 2020, Uniswap was estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume.

<i>CryptoPunks</i> Pioneering non-fungible token on Ethereum

CryptoPunks is a non-fungible token (NFT) collection on the Ethereum blockchain. The project was launched in June 2017 by the Larva Labs studio, a two-person team consisting of Canadian software developers Matt Hall and John Watkinson. The experimental project was inspired by the London punk scenes, the cyberpunk movement, and electronic music artists Daft Punk. The crypto art blockchain project was an inspiration for the ERC-721 standard for NFTs and the modern crypto art movement, which has since become a part of the cryptocurrency and decentralized finance ecosystems on multiple blockchains.

<span class="mw-page-title-main">0x (decentralized exchange infrastructure)</span> Cryptocurrency

0x is an open-source, decentralized exchange infrastructure that enables the exchange of tokenized assets on multiple blockchains. Developers can use 0x to incorporate exchange functionality into their applications, and market makers can use 0x to create markets for cryptocurrencies and tokens. ZRX, an Ethereum ERC-20 token, is the native governance and staking token of 0x. Individuals who own ZRX can vote on protocol changes and stake their tokens to earn liquidity rewards in Ether (ETH). The project's creator and core developer is 0x Labs.

<span class="mw-page-title-main">Solana (blockchain platform)</span> Public blockchain platform

Solana is a blockchain platform which uses a proof-of-stake mechanism to provide smart contract functionality. Its native cryptocurrency is SOL.

Web3 is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies sometimes referred to as "Big Tech". The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms. The concepts of Web3 were first represented in 2013.

StarkWare Industries is an Israeli software company that specializes in cryptography. It develops zero-knowledge proof technology that compresses information to address the scalability problem of the blockchain, and works on the Ethereum platform. In May 2022, the company's estimated value was $8 billion, an increase from $2 billion six months earlier.

<span class="mw-page-title-main">ERC-721</span> A technical standard for NFTs

The ERC-721 Non-fungible Token Standard, is a technical framework, defining a set of rules and interfaces for creating and managing unique, non-fungible tokens (NFTs) on the Ethereum blockchain. ERC-721 is recognized for formalizing the concept of an NFT and establishing the foundation of the multi-billion dollar digital collectibles ecosystem that emerged alongside its adoption. It is one of the most widely used NFT standards across use cases and has been utilized in various high profile projects.

The Aave Protocol is an open-source, decentralized finance (DeFi) protocol built on the Ethereum blockchain and released in 2020. It is one of the largest cryptocurrency liquidity protocols. The Aave Protocol uses smart contracts to automate processes, including distributing funds and handling collateral.

<span class="mw-page-title-main">Arkham Intelligence</span>

Arkham Intelligence is a public data application that enables users to analyze blockchain and cryptocurrency activity. Founded by Miguel Morel in 2020, the company's platform utilizes AI to identify and catalog the owners of blockchain addresses.

References

  1. ↑ "Matic Whitepaper". github.com. Matic Network. Retrieved 19 August 2022.
  2. ↑ "Polygon Litepaper" (PDF). polygon.technology. Polygon Technology. Archived from the original (PDF) on 2021-02-09. Retrieved 19 August 2022.
  3. ↑ Borate, Abhinav Kaul, Neil (2021-05-27). "Meet India's first crypto billionaires". mint. Retrieved 2022-12-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  4. ↑ "https://polygon.technology/blog/matic-network-becomes-polygon-ethereums-internet-of-blockchains-expands-mission-and-tech-scope". polygon.technology. Retrieved 2024-05-16.{{cite web}}: External link in |title= (help)
  5. ↑ "Polygon 2.0: The Evolution from Matic to Pol". Binance Square. Retrieved 2024-05-16.
  6. ↑ Srivastava, Ruhi (2023-12-12). "What is Polygon (MATIC)? Its Architecture, Working & Application". Medium. Retrieved 2024-05-16.
  7. ↑ "MATIC Token | MATIC tokenomics and full info". polygon.technology. Retrieved 2024-05-16.
  8. ↑ "Crypto Firm Polygon Makes $500 Million Buy for Ethereum Push". bloomberg.com. 9 December 2021. Retrieved 8 April 2022..
  9. ↑ "Polygon's Value Grows as Its Apps Grow in Usefulness and Popularity". Investor Place (Press release). 2022-01-17. Retrieved 8 April 2022– via nasdaq.com.
  10. ↑ Maishera, Hassan (2021-12-30). "Polygon (MATIC) Reveals it was Hacked Earlier this Month". FXEmpire – via Yahoo.
  11. ↑ "Polygon raises $450 mln from Sequoia Capital India, SoftBank Vision Fund 2, others". Reuters. 2022-02-10.
  12. ↑ "JPMorgan Executes Its First DeFi Trade Using Public Blockchain". Bloomberg. 2 November 2022. Retrieved 17 March 2024.
  13. ↑ Martin, Mitchell. "Trump NFTs Offer Adoring 45,000 Views Of Former President". Forbes. Retrieved 2022-12-17.
  14. ↑ "'Losing the plot': Trump mocked after announcing superhero card collection". the Guardian. 2022-12-15. Retrieved 2022-12-17.
  15. ↑ Dale, Brady (4 December 2023). "Polygon blockchain gave DraftKings unique yield: CoinDesk". Axios . Retrieved 17 March 2024.
  16. ↑ Takahashi, Dean (19 January 2023). "Alethea AI debuts generative AI on Polygon blockchain". venturebeat Gamesbeat. Retrieved 17 March 2024.
  17. ↑ Benson, Jeff (25 February 2023). "Along came Polygon: The blockchain doing serious business with big names including Starbucks and Mastercard". Fortune. Retrieved 17 March 2024.
  18. ↑ Wiggers, Kyle (9 January 2024). "Fox partners with Polygon Labs to tackle deepfake distrust". TechCrunch. Retrieved 17 March 2024.
  19. ↑ Melinek, Jacquelyn (14 March 2024). "Blockchain tech could be the answer to uncovering deepfakes and validating content". TechCrunch. Retrieved 17 March 2024.
  20. ↑ Steinberg, Don (2023). "Time100 Most Influential Companies 2023". TIME. Retrieved 17 March 2024.
  21. ↑ "Tether had 'record-breaking' net profits in Q4, Polygon Labs does layoffs and hackers steal $112M of XRP". TechCrunch. 1 February 2024.
  22. ↑ Melinek, Jacquelyn (1 February 2024). "Polygon Labs lays off 60 employees, about 19% of its staff, CEO says". TechCrunch. Retrieved 16 March 2024.
  23. ↑ "Netcoins".
  24. ↑ "Polygon (MATIC) and Uniswap (UNI) Partnership: What You Need to Know". U.Today. 2023-01-10. Retrieved 2024-05-16.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.