In previous blog articles, we’ve covered a broad view of cryptocurrency and offered a closer look at Bitcoin, Ethereum and several other altcoins.
👀 In this article, we’ll take a closer look at the cryptocurrency – Polygon, and cover what it is and how it works. Here is our brief guide to get you on a clearer path to understanding.
🌰 POLYGON IN A NUTSHELL
👉 Polygon is a cryptocurrency, blockchain network and decentralized Ethereum scaling platform. It enables developers to build scalable user-friendly dApps securely with low transaction fees.
Polygon is essentially a Layer 2 solution that ensures transactions can be processed faster, splits the transaction load, and thus achieves higher scalability than the main Ethereum network.
🪙 The Polygon token (ticker: MATIC) is the native ERC-20 Ethereum token of Polygon. It is used to govern and secure the network via staking. It forms the currency of Polygon apps that enables users to interact with hundreds of dApps involved in the Polygon ecosystem.
📜 POLYGON HISTORY
🚀 Polygon launched under the name “Matic Network” in 2017 with the tagline "Ethereum's internet of blockchains". The network was co-founded by software engineers Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, primarily based in Mumbai, India 🇮🇳.
By early 2021, the project changed its name to Polygon to reflect a change in scope which expanded and extended to the metaverse. During this time, Polygon Studios was launched to focus on blockchain gaming and NFTs.
2022 saw the blockchain solution develop further. The project made acquisitions to access a technology called “zero-knowledge rollups”, which offloads data from Ethereum to reduce fees and speed up the transaction process. Polygon also formed partnerships with financial solutions company Stripe, Twitter and Disney’s 2022 Acceleration Program to expand into augmented reality, NFTs, and AI experiences.
🪙 POLYGON TOKENOMICS
The finite supply of Polygon totals 10,000,000,000 MATIC. Currently, the supply of MATIC in circulation is 8.73 billion. The current market capitalization of Polygon is approximately just over USD$7 billion.
🌐 POLYGON vs ETHEREUM
Polygon is a secondary scaling solution that complements the Ethereum blockchain. Polygon aims to improve upon Ethereum as a blockchain development network. Polygon complements Ethereum by providing additional features relating to security, blockchain sovereignty, user and developer experience, and modularity. It does this through its modified proof-of-stake consensus mechanism that enables transactions to be processed quickly and cheaply.
Polygon is used by dApps including DeFi, DAOs and NFTs. The platform now supports over 7,000 blockchain-based projects.
Regarding the future outlook for Polygon, the project has committed $100 million to projects enabling the transition to decentralized internet (web3).
✔️Polygon’s advantages include its superior ability to process transactions quickly and its consistently low transaction fees.
❌The platform’s disadvantages could be the limited use cases for MATIC as its only really used for governance purposes. Polygon is also NOT an autonomous blockchain and operates as a Layer 2 solution above the Ethereum platform. Any serious disruptions to Ethereum would affect Polygon.
💲 POLYGON PRICE
When Polygon initially launched in 2019, it had a minimal value between USD$0.01 and USD$0.02. By early 2021, the value of Polygon began to rise dramatically, reaching an initial peak of USD$2.21 in May of that year. Shortly before the end of 2021, the value of MATIC reached an all time high price of just over ~USD$2.87. Since that time, Polygon’s value has retracted with the bearish market and has consolidated in the last months of 2022 between USD$0.80 and USD$1.25.
👉 EARNING POLYGON WITH BLOOM
📲.The Bloom shopper rewards app allows you to earn Polygon and other crypto (like Bitcoin, Ethereum and a range of other altcoins) with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card.
🪙 With every purchase, you will earn Bloom Coins by simply using your Visa card 💳. The more you use your card, the more Bloom Coins you will earn.
💰 The Bloom Coins you earn can be spent within the app 🎁 and converted into Polygon.
🆓 Converting crypto on Bloom, such as Polygon, is free of charge and has no gas fees!
💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.