Today I’m going to be talking about Polygon (Matic) coin and how it is beneficial for ethereum to solve many problems. Ethereum is World’s second most popular Cryptocurrency among all cryptos. But there are some limitations of ethereum, to find the solution of these problems polygon (Matic) was made. Like Ethereum, Polygon (Matic) is a Cryptocurrency. To know more about Polygon (Matic) Coin read this article till the end.
In this article, I’ll cover some important topics or questions about Polygon such as what is polygon (Matic) Coin, how does polygon (Matic) work, Advantages and disadvantages of polygon and how it can be a better investment option than other cryptos.
So without wasting time, let’s dig in.
What is Polygon (Matic) Coin?
Like others, Polygon (Matic) is also a Cryptocurrency coin. It was launched in 2017 by three Indians named Jayanti kanani, Sandeep naiwal and Anurag arjun as Matic Coin. But after gaining so much popularity, in 2019 it was rebranded with the name of Polygon. However, a coin which powers a polygon network is still a matic coin. It is the first Indian Cryptocurrency which quickly gained market traction. It is in the top 15 cryptocurrencies.
Polygon (Matic) was made with the motive of solving ethereum’s serious problems. As we know there are many weaknesses of the Ethereum network such as high gas fees, incompatibility with other blockchain and low transaction speed. Polygon allows transactions on matic networks with very low gas fees and high transaction speed. Ethereum can process only 30 transactions per second, while polygon has capability of processing 65,000 transactions per second.
Polygon is a L2 solution where you can build decentralized apps (dApps), NFT, smart contract, and use it for gaming. It is also known as “Ethereum scaling solution”. After understanding “what is Polygon (Matic) Coin”, let’s find out how it works.
How does polygon (Matic) work?
Polygon is a layer 2 solution which aims to solve ethereum network problems. To do so it uses many technologies. Some of those technologies I’m mentioning below.
1. Proof-of-stake: Blockchain on Polygon network works on PoS method. Here a network of validators verify new transactions and validate them to add to ethereum’s main chain. In comparison to PoW it uses low gas fees to process transactions.
2. Zk Rollups: It makes a bundle of many transactions and converts them into a single transaction. These are then added to the ethereum’s main block.
3. Optimistic Rollups (OLs): In this, transactions are considered true without verification and added to ethereum’s blockchain. But, because it uses Ols Fraud Proof, so if a transaction turns out to be wrong then it is removed and a heavy fine has to be paid by the miner who verified it.
Is Polygon (Matic) a good investment?
Yes, Polygon is a good investment. It is fundamentally a very strong Cryptocurrency and has potential for consistent growth. According to experts, polygon can be a better investment option than other Cryptocurrencies. The price of matic coins could grow exponentially in the future.
For the past few years, Polygon is giving amazing returns. Even in the phase of the market crash, it recovered quickly. You would be surprised to know that in the last year this coin has given a return of 10,000 percent.
Mark Cuban said, polygon is the only Cryptocurrency which is competing against bitcoin and ethereum.
Advantages and Disadvantages of Polygon (Matic)
Advantages
1. Faster transaction speed: One of the biggest advantages of Polygon is that it processes transactions at very high speed. Matic network can process approx 65,000 TPS.
2. Low gas fees: Another big benefit of polygon is that it charges very low transaction fees for using the network. Polygon network transaction fee remains between $0.1 to $0.5.
3. Scalability: It has a lot of potential use-cases and can be scaled when user volume increases which shows it can be used for mass adoption.
Disadvantages
1. Depends on Ethereum: As it doesn’t have its own blockchain and works on the top of the Ethereum platform. So if anything happens to ethereum it could impact polygon.
2. E 2.0: Ethereum 2.0 is expected to release in 2022. Many saying, it will solve most of the problems of the ethereum network such as high gas fees, transaction speed, etc. This may limit the uses of polygon.
How to buy Polygon (Matic) Coin?
To buy Polygon (Matic) coins you can choose any of the popular crypto exchanges such as WazirX, Binance, CoinDCX, coinbase, etc. For now, I’m taking the example of WazirX.
Step-by-step Guide:–
Step 1. Download WazirX app from playstore.
Step 2. Register to the app by filling details such as name, email, phone and PAN card.
Step 3. Now, add payment details. For this go to Account setting, click on Banking and payment options and choose payment method.
Step 4. Deposit funds using any payment method.
Step 5. Click ok Quick buy option at bottom left, search Matic coin, click on Matic coin and buy as much as you want.
Future of Polygon (Matic)
As we’ve discussed above, for the past few years Polygon (Matic) coins are giving high returns. Also, fundamentally it’s very strong. Now, during the Russia-Ukraine crisis, while other Cryptocurrencies are struggling, Polygon matic has given approx 9% return in just seven days. So after considering all factors I think polygon may have a bright future and it can be a good investment option for the long-term.
Disclaimer: The information provided in this article is for education purposes only and doesn’t constitute investment advice. So, if you want to invest or trade in any Cryptocurrency, invest at your own risk. CoinGyani will not accept liability on loss or damage, which may arise directly or indirectly using such information.