Polygon (blockchain)

Polygon
Denominations
Code$MATIC
Previous namesMatic Network
Development
Original author(s)Jaynti Kanani, Sandeep Nailwal, Anurag Arjun,[1] Mihailo Bjelic[2]
White papergithub.com/maticnetwork/whitepaper
Code repositorygithub.com/maticnetwork/
Development statusActive
Developer(s)Polygon Technology
Source modelOpen source
Ledger
Ledger startJune 1, 2020; 3 years ago (2020-06-01)
Block time2.3 seconds
Block explorerpolygonscan.com
Website
Websitepolygon.technology

Polygon (formerly Matic Network) is a blockchain platform which aims to create a multi-chain blockchain system compatible with Ethereum. As with Ethereum, it uses a proof-of-stake consensus mechanism for processing transactions on-chain. Polygon's native token is named MATIC. Matic is an ERC-20 token, allowing for compatibility with other Ethereum cryptocurrencies. It is operated by Polygon Labs.

Polygon is used in decentralized applications (dApps) such as Defi, DAOs, and NFTs.

History[edit]

Founding[edit]

The blockchain company Polygon was originally known as Matic Network. The Matic Network was launched in 2017 by four Mumbai-based software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.[3]

Rebranding[edit]

In February 2021, the MATIC Network underwent a significant rebranding to become Polygon Technology.[4] This strategic shift aimed to transform the project from a single Layer 2 scaling solution to a comprehensive platform capable of integrating multiple Layer 2 scaling solutions and standalone blockchains into a coherent and interoperable system.[5]

   The rebranding to Polygon marked an expansion of the original vision. While MATIC Network was primarily focused on providing a singular scaling solution using Plasma chains, Polygon aimed to create an entire suite of Layer 2 scaling solutions. This included not only Plasma chains but also rollups (Optimistic Rollups and ZK-Rollups), sidechains, and other technologies designed to enhance Ethereum’s scalability and user experience.[6]

   Polygon sought to develop a multi-chain ecosystem, akin to an "Internet of Blockchains." This approach allows different blockchains to interconnect and communicate seamlessly, fostering greater interoperability and collaboration across various blockchain networks. Polygon’s framework facilitates the creation of interconnected blockchain networks, each optimized for specific use cases.

   The rebranding aimed to attract a broader developer community by providing more tools and resources. Polygon offers enhanced development capabilities, enabling developers to build decentralized applications (dApps) with improved scalability, lower transaction costs, and a better user experience.

   With the rebranding, MATIC continued to serve as the native token, maintaining its critical roles in network governance, staking, and transaction fee payments. Token holders can participate in the decision-making process regarding network upgrades and changes, contributing to the platform's decentralized governance model.[7]

   Polygon’s rebranding included efforts to forge new partnerships and expand its ecosystem. By collaborating with various projects and developers, Polygon aimed to accelerate the adoption of its scaling solutions and broaden its impact on the Ethereum ecosystem and beyond.

The rebranding to Polygon Technology has had a significant impact on the project's trajectory. It has positioned Polygon as a leading solution in the blockchain space for scalability and interoperability. The broader vision and expanded capabilities have attracted numerous projects and developers, solidifying Polygon’s role as a pivotal player in the development of scalable blockchain infrastructure.

Polygon’s rebranding has also led to increased market visibility and adoption of the MATIC token, as the platform continues to address key challenges in the blockchain industry, such as high transaction fees and network congestion on Ethereum.

Acquisition[edit]

In December 2021, Polygon acquired the Mir blockchain network for 250 million MATIC tokens, with the tokens having a value of around $400 million at the time of the deal. ZK-rollups were intended to offload data from Ethereum to reduce fees and speed-up the transaction process while maintaining security.[8][9]

Theft of MATIC tokens[edit]

In December 2021, Polygon disclosed a security vulnerability that resulted in the theft of 801,601 MATIC tokens.[10] In February 2022, Polygon raised $450 million by selling MATIC tokens in a round led by Sequoia Capital India including Tiger Global and Softbank Vision Fund.[11] In November 2022, JPMorgan Chase & Co executed its first live trade on a public blockchain, using Polygon and modified Aave.[12] On December 15, 2022, Donald Trump launched a series of digital art NFTs minted on the Polygon network for sale to the public for $99 USD each.[13][14]

Important events[edit]

A 2023 partnership between Polygon and the DraftKings, where the team was allowed to keep all earnings from sale of MATIC, came under scrutiny for potential undisclosed aspects of the deal, which Polygon denied.[15] Alethea AI in January 2023 began creating a line of NFTs through Polygon.[16] By February 2023, the blockchain was doing business with large companies such as Starbucks and Mastercard, with Fortune noting it had been relatively unaffected by the 2022 cryptocurrency crash compared to other companies.[17] The Fox Network began working with Polygon on a blockchain project in 2023.[18][19] TIME in 2023 named Polygon Labs one of the Time100 Most Influential Companies of the year.[20] In February 2024 Polygon Labs laid of 60 employees, or around 19% of its staff.[21][22]

Technology[edit]

Polygon uses a modified proof of stake consensus mechanism that enables a consensus to be achieved with every block. Achieving consensus using traditional proof of stake requires processing many blocks to achieve consensus. The proof of stake method requires network participants to stake—agree to not trade or sell—their MATIC tokens, in exchange for the right to validate Polygon network transactions. Successful validators in the Polygon network are rewarded with MATIC tokens.

The Polygon network aims to address problems within the Ethereum platform, namely high transaction fees and slow processing speeds.

Partnerships[edit]

  1. Meta: In 2023, Meta (formerly Facebook) partnered with Polygon to launch its NFT platform, enhancing security and efficiency for digital asset trading within the Metaverse​.
  2. Adidas: Adidas collaborated with Polygon to introduce its NFT platform, Adidas Originals, in February 2023, providing a secure and efficient way for customers to engage with digital assets​​.
  3. The Walt Disney Company: Polygon was selected for Disney's Accelerator Program in 2022, focusing on the development of augmented reality, NFTs, and artificial intelligence within Disney's digital ecosystem​.[23]
  4. DraftKings: DraftKings integrated with Polygon in 2022 to power its NFT marketplace, allowing users to participate in digital sports entertainment at reduced costs and faster transaction speeds​.
  5. Immutable X: In 2023, Polygon partnered with Immutable X to enhance the Web3 gaming ecosystem, simplifying the process for game developers to adopt blockchain technology​​.
  6. Visa and Mastercard: Both financial giants have collaborated with Polygon to explore the use of blockchain for improving the speed and efficiency of their payment networks​​.
  7. Uniswap: Uniswap, a leading decentralized exchange, integrated with Polygon in 2021. This partnership enables users to swap ERC-20 tokens more efficiently and at lower costs​.[24]
  8. Aave: Aave, a decentralized lending protocol, integrated with Polygon in 2021, providing users with cost-effective and fast access to its lending service​​.
  9. Samsung: In 2022, Samsung partnered with Polygon to power its NFT platform, expanding the reach of blockchain technology in the consumer electronics sector​​.
  10. Formula 1: Polygon was chosen to support Formula 1's NFT platform, showcasing its ability to handle large-scale digital asset transactions​​.

References[edit]

  1. ^ "Matic Whitepaper". github.com. Matic Network. Retrieved 19 August 2022.
  2. ^ "Polygon Litepaper" (PDF). polygon.technology. Polygon Technology. Archived from the original (PDF) on 2021-02-09. Retrieved 19 August 2022.
  3. ^ Borate, Abhinav Kaul, Neil (2021-05-27). "Meet India's first crypto billionaires". mint. Retrieved 2022-12-17.{{cite web}}: CS1 maint: multiple names: authors list (link)
  4. ^ "https://polygon.technology/blog/matic-network-becomes-polygon-ethereums-internet-of-blockchains-expands-mission-and-tech-scope". polygon.technology. Retrieved 2024-05-16. {{cite web}}: External link in |title= (help)
  5. ^ "Polygon 2.0: The Evolution from Matic to Pol". Binance Square. Retrieved 2024-05-16.
  6. ^ Srivastava, Ruhi (2023-12-12). "What is Polygon (MATIC)? Its Architecture, Working & Application". Medium. Retrieved 2024-05-16.
  7. ^ "MATIC Token | MATIC tokenomics and full info". polygon.technology. Retrieved 2024-05-16.
  8. ^ "Crypto Firm Polygon Makes $500 Million Buy for Ethereum Push". bloomberg.com. 9 December 2021. Retrieved 8 April 2022..
  9. ^ "Polygon's Value Grows as Its Apps Grow in Usefulness and Popularity". Investor Place (Press release). 2022-01-17. Retrieved 8 April 2022 – via nasdaq.com.
  10. ^ Maishera, Hassan (2021-12-30). "Polygon (MATIC) Reveals it was Hacked Earlier this Month". FXEmpire – via Yahoo.
  11. ^ "Polygon raises $450 mln from Sequoia Capital India, SoftBank Vision Fund 2, others". Reuters. 2022-02-10.
  12. ^ "JPMorgan Executes Its First DeFi Trade Using Public Blockchain". Bloomberg. 2 November 2022. Retrieved 17 March 2024.
  13. ^ Martin, Mitchell. "Trump NFTs Offer Adoring 45,000 Views Of Former President". Forbes. Retrieved 2022-12-17.
  14. ^ "'Losing the plot': Trump mocked after announcing superhero card collection". the Guardian. 2022-12-15. Retrieved 2022-12-17.
  15. ^ Dale, Brady (4 December 2023). "Polygon blockchain gave DraftKings unique yield: CoinDesk". Axios. Retrieved 17 March 2024.
  16. ^ Takahashi, Dean (19 January 2023). "Alethea AI debuts generative AI on Polygon blockchain". venturebeat Gamesbeat. Retrieved 17 March 2024.
  17. ^ Benson, Jeff (25 February 2023). "Along came Polygon: The blockchain doing serious business with big names including Starbucks and Mastercard". Fortune. Retrieved 17 March 2024.
  18. ^ Wiggers, Kyle (9 January 2024). "Fox partners with Polygon Labs to tackle deepfake distrust". TechCrunch. Retrieved 17 March 2024.
  19. ^ Melinek, Jacquelyn (14 March 2024). "Blockchain tech could be the answer to uncovering deepfakes and validating content". TechCrunch. Retrieved 17 March 2024.
  20. ^ Steinberg, Don (2023). "Time100 Most Influential Companies 2023". TIME. Retrieved 17 March 2024.
  21. ^ "Tether had 'record-breaking' net profits in Q4, Polygon Labs does layoffs and hackers steal $112M of XRP". TechCrunch. 1 February 2024.
  22. ^ Melinek, Jacquelyn (1 February 2024). "Polygon Labs lays off 60 employees, about 19% of its staff, CEO says". TechCrunch. Retrieved 16 March 2024.
  23. ^ "Netcoins".
  24. ^ "Polygon (MATIC) and Uniswap (UNI) Partnership: What You Need to Know". U.Today. 2023-01-10. Retrieved 2024-05-16.
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