Polygon is a protocol and framework for creating and linking Ethereum-compatible blockchain networks. Aggregating scalable Ethereum solutions to support a multi-chain Ethereum environment.
Polygon addresses Blockchain-related issues such as expensive gas fees and poor performance without losing security. This multi-chain method is similar to others such as Polkadot, Cosmos, and Avalanche, but with at least three main advantages:
- It can reap the full benefits of Ethereum’s network effects.
- It is more secure
- It is more accessible and powerful.
However base on their website, there are potential challenges that may arise as well:
- Low throughput
- Poor gas, delayed PoW finality
- No sovereignty
Even though there were challenges faced, their solution are unique:
- Adaptor modules for enabling interoperability for existing blockchain networks
- Growing set of modules for developing customer networks
- 1 click deployment of preset blockchain networks.
Let’s look at the fundamentals of it
It is not as easy to create a fundamental basis in cryptocurrency but there are a few metrics we can use. Polygon’s token, MATIC, is the basic resource that powers the Polygon ecosystem. In addition to being an asset, it is primarily utilized for staking tokens (proof-of-stake algorithm) to protect the Polygon network.
The MATIC token has a maximum quantity of 10 billion, more than 67% of which is now in circulation. It is now ranked among the top 25 cryptocurrencies in the world.
Polygon established a collaboration with Infosys Ltd’s consulting division. M-Setu is the name of this partnership. It intends to empower Infosys to give its clients disruptive technology. M-Setu will serve as an open-source bridge that will allow businesses to collaborate utilizing the Ethereum blockchain.
Another significant Polygon collaboration is the Trace Network. Trace is now employing it for NFT and DeFi, with the goal of becoming a go-to for shops to introduce NFTs to the public. For example, if a luxury business wanted to do NFTs on their items, the combination between trace and polygon would provide them with liquidity aggregation, comprehensive transparency, and supply chain traceability.
Polygon made a tremendous announcement on May 29th, in addition to several other significant achievements. It announced the completion of a project to integrate the Polygon elements into Google Cloud’s BigQuery. This connection allows BigQuery users to connect to Polygon, boosting its usability and positioning. Polygon has been added to Google Cloud’s BigQuery’s 1TB offering. This means that BigQuery users can utilize Polygon to execute queries and access various blockchain-related data sets on its network.
Billionaire Mark Cuban backs Polygon
On May 25, Mark Cuban threw his support behind this Indian Blockchain business. He disclosed that he has made an investment in Polygon, which can be seen in his company’s portfolio on their website. Cuban is well-known for his support for cryptocurrency. Despite Elon Musk’s temporary suspension of taking Bitcoin payments for Tesla, Cuban declared that the Mavericks (his basketball outfit brand) would continue to accept cryptos.
He noted that having a high Transaction Per Second (TPS) as Polygon offers is critical to lowering consumers’ use costs. Furthermore, Polygon already has many blockchain initiatives, which adds to his motives for investing.
Polygon’s flawless growth has been aided by Cuban’s funding. Polygon should expect higher adoption in the future as a cryptocurrency backed by the billionaire investor who backed Bitcoin, Ethereum, and other other cryptocurrencies.