Polygon Booms as the most attractive Ethereum scaling platform
Since the December 4th incident that caused a 35% correction, MATIC price has gradually rebounded and is nearing the close of its highest level in 7 months.
MATIC price | The source: Footprint analysis
This comes after news that venture capital firms like Sequoia Capital India and Steadview Capital are planning to invest between $ 50 million and $ 150 million in MATIC tokens.
Total locked according to order | The source: Footprint analysis
Polygon aims to solve some of Ethereum’s problems such as:
– Low throughput.
– Poor user experience (gas charges, slow PoW transaction completion times).
– Not independent (shared throughput / overload risk, non-adaptable technology stack, governance dependencies).
feeas used on BCS and Ethereum | The source: Footprint analysis
Polygon is one of the sidechain solutions that make Ethereum more efficient, including xDai and Ronin.
Build and connect Ethereum-compatible blockchain networks
Polygon is a protocol and framework for building and connecting Ethereum-compatible blockchain networks. When the scope of Matic was expanded from a layer 2 scaling solution for blockchains to a “network chief”, the platform was changed to “polygon”.
It aims to make Ethereum a multi-chain ecosystem with Layer 2 secured and independent chains.
Polygon solution for Ethereum and DeFi
Polygon’s ambitious design offers a number of advantages, making it one of the most attractive Ethereum scaling platforms available.
TVL of the Polygon Ecosystem | The source: Footprint analysis
TVL (Total Locked Value) is currently over $ 5.1 billion at Polygon, while the token trading volume is $ 4.2 billion.
Let’s take a look at some of the most compelling features of the Polygon platform:
Scalability: Polygon offers specialized Wasm execution environments, custom blockchains and scalable consensus algorithms. This makes the transaction speed faster and the gas fee lower, which is beneficial for both developers and subscribers.
Ethereum Compatibility: Given its industry leadership in technology stacks, tools, languages, standards, and business adoption, Polygon is compatible with Ethereum and other blockchain networks for random messaging.
– Modular Design: The modularity of Polygon enables adjustments, upgrades, reduced time to market and community collaboration.
Via Polygon, developers can set up a pre-installed blockchain network with specific properties for their needs. Thanks to the participation of the community, more and more modules are available for customer-specific network development, which enable rapid adaptation, expandability, upgradeability and access to a rapidly growing market.
Interoperability: Using plasma technology, Polygon processes out-of-chain transactions before they are confirmed on Ethereum. Polygon is designed as a complete framework for developing interoperable blockchains. It has built-in support for passing any messages (tokens, sales contracts, etc.) and enables connection to external systems.
User Experience: Polygon offers “zero gas” transactions and instant transaction processing times. In other words, Polygon doesn’t require any knowledge of the protocol, token deposit, or approval. Its modular structure also makes it easy to create individual solutions or add new functions.
Total locked | The source: Footprint analysis
Polygon is working on many scaling solutions and is completely focused on the Ethereum network. High speed combined with low transaction costs on the platform is attracting more and more developers. Thanks to this, Polygon is growing steadily, with Aave, Curve, Sushiswap and many other projects on Ethereum being used on Polygon.
TVL of Log about polygon | The source: Footprint analysis
After ETH 2.0, Polygon’s solution will be more stable, as low gas charges will reduce the time it takes Polygon chains to send nodes to Ethererum.