Polygon (MATIC) is a token based on the ethereum blockchain that enables the operation of the Polygon Network scaling network. Polygon aims to provide faster and cheaper ethereum transactions using Layer 2 side chains running alongside the main ethereum chain. Polygon Network users can deposit ethereum tokens into the polygon smart contract, interact with them within the polygon, and then withdraw them back into the main ethereum chain. The MATIC token is used to regulate transaction fees and participate in the proof-of-stake consensus.
Polygon therefore solves the problems associated with the ethereum blockchain, such as high gas charges and low speeds, but without sacrificing security requirements. This multi-chain system is similar to other existing networks, but has at least three main advantages:
- is able to take full advantage of Ethereum's network effects
- is inherently more secure
- is more open and more powerful