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Polygon, formerly known as Matic Network, is a cryptocurrency and blockchain scalability platform that aims to address the limitations of the Ethereum network. It was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun with the goal of providing faster and cheaper transactions on the Ethereum blockchain. Polygon operates as a layer 2 solution, offering a framework for building and connecting Ethereum-compatible blockchain networks. At its core, Polygon acts as a scaling solution by utilizing a technology called "Polygon PoS (Proof of Stake) Chain" or "Matic PoS Chain." This layer 2 framework enables developers to create their own blockchain networks, known as "sidechains," while remaining connected to the Ethereum mainnet. These sidechains benefit from the security and decentralization of the Ethereum network while offering improved scalability and faster transaction speeds. Polygon aims to address Ethereum's limitations, such as high gas fees and slow transaction times, by providing a more efficient and cost-effective infrastructure for decentralized applications (dApps) and smart contracts.
Polygon operates with a multi-chain architecture, consisting of the Ethereum mainnet as the primary chain and multiple sidechains connected to it. The Polygon PoS Chain acts as the foundation of this network, serving as a scaling solution. It utilizes a proof-of-stake consensus mechanism, where network validators stake Polygon's native cryptocurrency, MATIC, to secure the network and validate transactions. The sidechains created on Polygon are designed to be compatible with the Ethereum Virtual Machine (EVM), allowing developers to seamlessly port their existing Ethereum-based applications onto the network. This compatibility enables developers to leverage Polygon's scalability features without the need for extensive code modifications. The MATIC token serves multiple purposes within the Polygon ecosystem. It is used for staking by network validators, allowing them to participate in the consensus mechanism and earn rewards. MATIC is also used to pay for transaction fees, incentivizing validators and securing the network. Additionally, MATIC holders can participate in governance by staking their tokens and voting on proposals that impact the future of the Polygon network.
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