All about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchains

Polygon is both a protocol and a toolkit, enabling Ethereum-compatible blockchains to be built and connected. MATIC, its crypto-jeton, is essential to the functioning of its ecosystem. This secondary layer solution has impressive performance, for a very smooth Ethereum experience.

In 2021, it’s impossible to have missed the phenomenon. The team is churning out partnerships and hackathons, while the most popular decentralizedEthereum applications are integrating Polygon. Whether it’s DeFi, NFT, or private blockchains, the community is buzzing.

What exactly is Polygon (MATIC) for?

Polygon was born from an observation: Ethereum is the world’s leading smart contract platform, but it is reaching its limits. Users and developers suffer from high latency and gas costs. The current architecture does not allow for customization of the technology stack . Developers flee to secondary blockchains, compatible with theEVM. The latter do not communicate with each other, which fragments the network.

Polygon’s ambition is to become the Internet of Ethereum-compatible blockchains.

Polygon MATIC logo - EthereumPolygon MATIC logo - Ethereum

The Polygon team

The co-founders of Polygon are Jaynti Kanani, Sandeep Nailwal, Mihailo Bjelic and Anurag Arjun. Several well-known advisors are also involved in the project, which has dozens of contributors across the globe.

Polygon - MATIC - Équipe<img width=”1284″ height=”686″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/10/Polygon-Matic-Team..jpg” alt=’Polygon – MATIC – Team’ />ThePolygon team

Since October 2017, the team has continuously developed its platform and increased collaborations. In addition, Polygon relies on its active community. The interview with Sandeep Nailwal, conducted by Sami, is available on video

.

Polygon in numbers

The Polygon network mainnet

was launched on May 15, 2020, and now has :

  • 660,000 + addresses;
  • Daily volume 7.5 million transactions per day;
  • 100 validators;
  • 12,500+ delegates;
  • About $2 billion in MATIC is in escrow via staking;
  • A TVL(total value locked) of $7.4 billion.

Polygon - MATIC - Statistiques du réseau - Network StatisticsPolygon - MATIC - Statistiques du réseau - Network Statistics

Polygon’s performance in the areas of scalability and user experience is therefore attracting many users and service providers. Indeed, on Ethereum, a simple transaction costs about $4 in fees. With Polygon, its cost is 0.00007 cents. Similarly, depositing cash in a pool

on Ethereum costs $30, on Polygon, only 5 thousandths of a cent. Polygon - MATIC -Ethereum - Fee comparison - Comparison des fraisPolygon - MATIC -Ethereum - Fee comparison - Comparison des fraisComparison of fees for basic operations between Ethereum and Polygon

Polygon’s features (MATIC)

Polygon’s features are thus amazing, both from an end-user and developer perspective. The development environment is nice, and allows to deploy fast blockchains, while benefiting from the best of Ethereum – for example its security

.

  • First of all, Polygon is fully compatible with Ethereum. It will use the same programming language(Solidity) and the same tools (Remix, Truffle) ;
  • Secondly, it is an extremely scalable system: you can deploy custom chains, choose your own consensus algorithms, use dedicated execution environments…
  • Its security level is fully customizable(security as a service). The developer can choose Ethereum or a set of dedicated validators;
  • In fact, Polygon allows to create blockchains that are totally sovereign in terms of governance or technological stack ;
  • Moreover, the protocol is focused on interoperability. Thus, it is possible to exchange with Ethereum but also other blockchain networks, thanks tobridges;
  • Let’s add that Polygon is fully modular. These modules allow to develop custom networks or to interact with existing networks. A wide range of preset blockchain networks can be deployed in one click;
  • Finally, the user/developer experience – the fluidity of operations for the user coupled with the ease of implementation – is greatly enhanced.
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Polygon (MATIC) - BridgePolygon (MATIC) - BridgeTransfer your ETH in a few clicks thanks to the Polygon Bridge

It is thus a rich and promising ecosystem that Sandeep Nailwal and his team have designed for us! Let’s try to understand a little how it works and what laws govern it.

Polygon: technology and architecture

Polygon’s mantra is “designed by developers, for developers”

.

Its architecture is modular and blockchains are customizable, as well as their security level: there are therefore two types

.

  • On the one hand, stand-alone blockchains are sovereign. Their security does not depend on the Ethereum parent blockchain: they are independent of it, and their developers are in charge. This type of chain is rather used by companies, or already established crypto projects. They have their own set of validators and offer the best degree of flexibility.
  • On the other hand, blockchains secured by Ethereum do not have their own validators, and are secured in two ways. Developers can go directly through Ethereum, using proofs of validity, or through a set of dedicated validators. They are generally intended for young startups or projects focused on security.

The different layers of the Polygon network

From a

network perspective, Polygon is layered into four layers:<

img width=”1200″ height=”680″ src=”//www.w3.org/2000/svg’%20viewBox=’0%200%201200%20680’%3E%3C/svg%3E” alt=’Polygon’s complete architecture’ /><img width=”1200″ height=”680″ src=”https://yellowrocketagency.com/wp-content/uploads/2021/10/Polygon-Architecture..jpg” alt=’Polygon’s complete architecture’ />Polygon’s architecture

The executive layer

El

le is divided into two sub-layers: first, the execution environment, an implementation of the EVM. Second, the execution logic layer is about the change of state of the blockchain, based on a given Polygon network, in the form of a smart contract. This is where the final transactions, from the Polygon blockchain networks, are interpreted and executed.

The Polygon layer

This is the

set of sovereign blockchains deployed on Polygon. Each chain depends on its creators and users, has its own consensus mechanism, its block production function, etc.

The security layer

This layer is optional. It includes a set of validators, in charge of periodically checking the validity of a Polygon blockchain in exchange of fees. The security layer concerns the validation of Polygon chains as such. This is where functions such as validator management – registration, rewards, randomization, etc. – are performed. This security layer can be implemented alongside Ethereum (on multiple instances), or directly on Ethereum (in which case Ethereum miners perform the validation).

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The Ethereum layer

This layer is implemented as a set of smart contracts on Ethereum. They govern transaction finalization, staking

, conflict resolution, message transfers between Ethereum and Polygon… Polygon - MATIC - Ethereum - dAppsPolygon - MATIC - Ethereum - dAppsIt’s all there!

Thanks to this system, the end user can use all the classic decentralized applications of Ethereum, with much lower fees and better fluidity.

The Polygon network actors

Polygon is therefore a protocol that has its own architecture, tools and network. All in all, it is an ecosystem, consisting of four types of actors:

  • First, the end user;
  • Then, the developers and dApps creators, who integrate or create applications on Polygon, in order to offer a better UI (freshness) and UX (speed) to the user;
  • Then come the stakers, who obviously play a crucial role in maintaining the ecosystem. Validators are in charge of connecting to the blockchain (via checkpoints). Transactions are validated in PoS and the stakers also choose the block producers;
  • Finally, the block producers, who are in charge of maintaining a blockchain in a flawless manner – low latency and high accessibility. In order to qualify for this role, a very large stake must be involved.

The different participants have an economic incentive to collaborate, via an adapted consensus mechanism.

The mechanism

Polygon Consensus System

Polygon can be seen as a two-level proof-of-stake system. The objective is to achieve a low block time, while ensuring a high degree of decentralization.

  • At the validator and checkpoint level, PoS is used to finalize transactions on the main chain, thanks to the proof system.
  • At the block producers, the proof of stake is used to ensure fast production.

This ensures optimal decentralization. Conjointly, the security of sidechains is ensured, thanks to the finalization of transactions on the main chain, Ethereum.

Détail technique de la blockchain MaticDétail technique de la blockchain Matic

The mechanism is as follows:

  • First, block producers are selected for a production round. They are approved by a 2/3 + 1 majority;
  • Second, at regular intervals, the root of the Markle tree of produced blocks must be validated by all nodes (checkpoint) ;
  • Third, a validator is then selected to collect signatures for the checkpoint, and publishes the evidence on the main chain (Ethereum).

Validators, as well as those who offer the proofs on Ethereum, are rewarded in proportion to their stake.

Thanks to checkpoints, Polygon can theoretically connect an infinite number of sidechains. Thus, a private enterprise blockchain can exchange assets with a user of a public sidechain, while benefiting from the same degree of security provided by Ethereum, and keeping full control of their execution environment and registry.

For now, the blockchain where transactions are finalized is Ethereum; however, Polygon allows by design to establish interoperability between different blockchains.

The MATIC token, essential to the operation of the Polygon protocol

The MATIC (from the old name of the project) is the central token of the Polygon ecosystem. It is a utility token, a governance token and the unit of account rewarding validators and delegates – an ERC-20. The MATIC provides an economic incentive for all participants to contribute to the good development of Polygon. Validation of blocks, computation of proofs, and other computing resources or services needed to maintain the network are paid in MATIC. Staking is rewarded: you can delegate your MATIC to the validator of your choice (or become a validator yourself).r).

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On the other hand, simple holders (hodlers) of the token are not entitled to any dividend or voting weight.

Polygon thus relies on a delegated proof-of-stake (dPoS) consensus mechanism, the details of which are as follows:

  • First, install and maintain a full node ;
  • Then, place under escrow MATICs (the stake) to join the system;
  • Once validator, it will be necessary to maintain its node correctly to claim the rewards;
  • Of course, MATIC holders can delegate their tokens to the validator of their choice. The validators then pay the reward in proportion to the stake while taking a commission;
  • Finally, validators who misbehave are punished (penalties or slashing).

Staking

Staking rewards are degressive and should be around 5% after 5 years.

All about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchainsAll about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchains

They also vary according to the quantity of MATICs staked in relation to the quantity in circulation.

All about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchainsAll about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchains

Validators must meet very demanding criteria. Theuptime must be excellent, as well as the security of the node (backups, HSM, attack prevention).

Polygon is waiting for you!

Let’s remember Polygon’s motto: “designed by developers, for developers.” In addition to Polygon’s compatibility with the EVM, the team has developed a comprehensivesoftware development kit (SDK) to create its dApps. The SDK is modular and extensible; it was initially coded in Golang. However, future implementations are expected: if you want to contribute, the Polygon team is recruiting.

Polygon brings together the best of the features found in existing scalability solutions for Ethereum.

All about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchainsAll about Polygon (MATIC), the project that wants to make Ethereum the standard for blockchains

For Ethereum and its community, the year 2021 is marked by the rapid development of its secondary layers. Polygon is one of the most complete and accessible infrastructures, giving a new lease of life to Ethereum.The smart contract platform designed by Vitalik Buterin has been given a new lease on life. The user can find his favorite dApps, accessible for a very low fee. Developers can deploy their applications with ease, thanks to the SDK provided by the team. The simple MATIC token holdeur can benefit from PoS rewards by delegating his tokens.

However, Polygon’s decentralization is a long-term goal. It is therefore highly recommended to participate to the war effort by deploying a validator node or by coding to participate to the improvement of the protocol! All proposals are welcome: just write to the Polygon team!

In the next episodes of this series, we will explore in detail the mechanisms that make up the protocol.

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