When it comes to cryptocurrencies, there is plenty of function in terms of using them outside of transactional purposes, so investors and traders often turn to those with wider applications to maximise their profit potential. With this in mind, while Polygon is actually a blockchain (albeit a secondary one, known as a sidechain on the Ethereum network), the fact that it is widening the scope of operations has led it to be one of the biggest names in 2023.
What is Polygon?
It is impossible to talk about Polygon without first mentioning Ethereum, as this was created as a supporting network to ensure that this blockchain’s intrinsic processes continue to provide users with the desired services. As one of the most diverse platforms in the crypto niche in terms of economic activity and a popular choice for crypto transactions, it isn’t too difficult to see that the more it offers, the more values will increase while potentially lessening productivity. In order to scale functionality and keep users’ investments financially viable, the developers created the Polygon sidechain to alleviate the pressure.
Also known as a layer 2 scaling solution that runs parallel to its counterpart, Polygon ensures that transactions stay lightning fast and affordable. A fantastic feature is that crypto coins can be allocated and moved between the two; and where the main Ethereum blockchain caters to native transactions, Polygon facilitates activities across a host of crypto products and services.
What features does Polygon provide?
As mentioned above, the Ethereum blockchain is widely used for a host of products, including NFTs, decentralised finance (DeFi) goods and services and supports smart contracts where a whole host of applications can be built. The Polygon network offers the same, but with cheaper fees for more a diverse level of accessibility for users (while reliving the stressors of overuse on Ethereum). It also has its own propitiatory token called MATIC that helps to facilitate staking, provide governance for shareholders and act as a bridge for other stablecoins under a proof-of-stake consensus mechanism.
Is Polygon really the one to watch for both 2023 and the future?
As Polygon has had quite a significant impact on the functionality of the Ethereum blockchain and the wider niche in general with off-chain scaling, it not only has a lot to offer right now, but also for the future. An unexpected perk of this fascinating blockchain initiative is that Polygon price movements can be used to gauge market sentiment and are not largely affected by Bitcoin as other cryptocurrencies may be.