MATIC is the native token of the Polygon Network. Users can utilize MATIC to pay transaction fees as well as staking.
Launched in October of 2017, the Polygon Network was co-founded by two expert blockchain developers named Jaynti Kanani and Sandeep Naiwal and Anurag Arjun, a business consultant. Polygon is a Layer-2 protocol built on top of the Ethereum (ETH) blockchain.
How does the Polygon Network work?
In recent years the Ethereum Network has grown drastically in popularity. The need for more transactions to be validated has led to a surge in gas fees. When referring to Ethereum, gas fees are the amount of ETH required to conduct a transaction over the Ethereum blockchain. Gas fees can be compared to ride share fees. As the number of people requesting rides increases, so do the fees. The same holds true for the Ethereum blockchain. When demand rises for the computational power required to process transactions, miners the cost to confirm those transactions rises accordingly.
The Polygon Network looks to solve two problems that many digital currencies seek to fix: slow transaction speeds and high transaction fees. Polygon lessens the burden on the Ethereum blockchain by processing transactions on side chains, blockchains that run adjacent to Ethereum’s blockchain. By removing the processing of transactions from Ethereum’s blockchain, more space is freed up and transactions can be processed more efficiently. Transactions from the Polygon blockchain are validated on the secondary layer and then ultimately sent back to Ethereum’s blockchain.
How does Matic work?
The Matic token is mainly used for paying transaction fees and staking purposes. Since Polygon runs on a Proof of Stake (PoS) consensus mechanism, those who hold MATIC can opt to stake tokens to help the network run properly. In return, those stake tokens benefit from rewards.
How is Polygon used?
Polygon is more than a scaling solution. Several decentralized apps (dApps) use Polygon to house exchanges, sports betting apps and lending apps, among many other types of dApps.
Further details on trading MATIC on TradeStation Crypto
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