What is a Polygon (MATIC)?

Polygon is among the most well-known digital currency initiatives. It proposed a solution to the main problem of any popular blockchain - scalability. Polygon's token called MATIC has become extremely prominent recently because of its special qualities and useful applications.

The total token supply is 10 billion, 87% of which have already been issued. Users can engage with hundreds of dApps that are a part of the ecosystem using internal currency. Through staking, the token is utilized to administer and keep the system protected in addition to paying fees.

Creation of the Polygon Project

In 2017, three Indian developers Sandeep Nailwal, Jayanti Kanani, and Anurag Arjun (later joined by Mihailo Bjelic) wanted to solve the problems of Ethereum, as well as take over the market share. They created the Matic Network project. In 2021, the project rebranded and was renamed Polygon, which better reflects the broader focus of the project. The native token is still called MATIC, but that is going to change soon.

Operation and Use Cases

Ethereum is used by the Polygon platform, which links projects built on this blockchain. It preserves Ethereum's strong sides while enhancing flexibility, ability to scale, and independence.

A Proof-of-Stake algorithm, which was slightly modified, is employed by the network. Its users must consent to not trading or selling their tokens in order to use this strategy. As a reward for accepting these terms and conditions, participants receive a native MATIC token.

Polygon tackles the drawbacks of the Ethereum platform, specifically its expensive transaction costs and sluggish processing times. In addition to creating its own network and deploying pre-existing ones, the platform provides an opportunity to link Ethereum to different blockchains.

Pros and Cons of Polygon

Multiple features make Polygon (MATIC) an excellent blockchain solution. Here are a few key benefits you should know about.

• Polygon (MATIC) can scale at a very low cost, supporting millions of users and transactions.
• By utilizing the platform's most up-to-date security features, you can effortlessly safeguard your transactions and data.
• Many services and tools are available at Polygon that can benefit all kinds of businesses and individuals.
• You may quickly and affordably implement a variety of decentralized apps. Additionally, it provides scalable solutions that may develop and expand along with your company.

Along with pluses, there are a couple of drawbacks, and the first of them is the dependence on Ethereum. For example, any technical problems on this platform may lead to similar problems with Polygon. 

In addition, the Matic utility token has a limited supply. However, it cannot be earned through mining due to the lack of Proof of Work. So, a separate purchase of tokens is only possible through some well-known crypto exchanges. Furthermore, unlike some other cryptocurrencies, MATIC is primarily utilized for platform payment, management, and security rather than for regular purchases.

Polygon 2.0  - MATIC to POL Conversion

The Polygon Labs team has released a smart contract on the Ethereum mainnet for a new token known as the Polygon Ecosystem Token (POL), with the goal of replacing the existing MATIC token. It is a universal token capable of validating multiple chains in the Polygon ecosystem. This opens a new era of interoperability between different protocols on the network.

This transition was originally proposed in July 2023 as part of the Polygon 2.0 update, and its main motivation is to provide network scalability without compromising its security. 

POL tokens can be transferred in a ratio of one to one of the existing MATIC tokens. Smart contracts will allow the POL token to retain the properties of the existing MATIC. The token still has a lot of time because this entire transition is planned to be completed in four years.

Conclusion

Taking into account the capabilities of the project and its experience, we can conclude that it is quite promising. But, like any crypto investment, it has dangers. The current situation with the Matic token, which is the center of the Polygon platform, is such that it ranks among the top ten leaders in capitalization of more than $10 billion.

Its native token also has plenty of uses and is planned to be transferred to Polygon 2.0. Many brands and companies work with the token, which has increased the level of trust in it. The partners included Disney, Reddit, Instagram, and other major players.

MATIC on CoinDepo

The CoinDepo platform supports Polygon (MATIC) as one of the main cryptocurrencies. With CoinDepo, you can safely store your MATIC in Compound Interest Accounts and earn from 12% to 18% per annum + compound interest, depending on the type of interest account you choose. Today, without exaggeration, this is the best offer on the market.

You can also borrow other major cryptocurrencies and stablecoins from CoinDepo against your MATIC portfolio without opening a collateral account, which is a unique service that has no analogs in the world of digital assets.