Matic: Powering Polygon’s Scalability and Innovation for Ethereum’s Future

Matic is a cryptocurrency that powers Polygon, a platform for scaling and developing Ethereum applications. Polygon aims to solve the problems of scalability, security, and user experience on the Ethereum network by using a second layer that runs on top of the main Ethereum layer. In this article, we will explain what Matic is, how it works, and why it is important for the future of Ethereum and the crypto ecosystem.

What is Matic?

Matic is the native token of Polygon, an ERC-20 token that runs on the Ethereum blockchain. Matic is used for various purposes on Polygon, such as:

Paying for transaction fees on Polygon’s sidechains, which are faster and cheaper than the main Ethereum chain.

Staking to secure the network and earn rewards. Polygon uses a proof-of-stake (PoS) mechanism that requires validators to stake Matic tokens to process and verify transactions on the second layer.

Governing the network and implementing Polygon Improvement Proposals (PIPs). Validators have special privileges on Polygon, such as voting on PIPs and helping with the decentralization of the network.

Matic tokens can be obtained by buying them from crypto exchanges, such as Coinbase or Binance, or by earning them from various platforms and applications that use Polygon, such as Coinbase Earn or Aave.

How does Matic work?

Matic works by enabling Polygon to scale Ethereum using a second layer solution called optimistic rollups. Optimistic rollups are a technique that allows for the execution of scalable and autonomous smart contracts on the second layer, while periodically settling the final state on the main layer.

Optimistic rollups work by assuming that transactions are valid by default, unless someone challenges them and proves them invalid. This reduces the amount of computation and data needed to verify transactions on the second layer, but also introduces a delay for finality and a risk of fraud.

Polygon is built on Optimism, a layer 2 scaling solution for Ethereum that provides a common framework and tooling for creating and interacting with optimistic rollup chains. Polygon is operated by Coinbase, the largest crypto exchange in North America, and aims to provide a web3 gateway for Coinbase’s 100 million verified users.

Polygon also supports various decentralized applications (dApps) on its platform, such as Aave, Sushiswap, and Magic Eden. Polygon allows users to access the crypto ecosystem via its intuitive interface, and enjoy low fees and high speed transactions on its layer 2 chain.

Why is Matic important?

Matic is important because it enables Polygon to achieve its vision of transforming Ethereum into a full-fledged multi-chain system (aka Internet of Blockchains). This multi-chain system is similar to other ones such as Polkadot, Cosmos, or Avalanche, but with the advantages of Ethereum’s security, vibrant ecosystem, and openness.

By using Matic, users can benefit from the best of both worlds: the innovation and interoperability of Ethereum’s layer 1, and the scalability and user experience of Polygon’s layer 2. Matic also empowers developers to build diverse and complex applications on Polygon’s platform, such as gaming, NFTs, DeFi, social media, and more.

Matic is not only a cryptocurrency, but also a catalyst for the growth and adoption of Ethereum and web3. By making Ethereum more accessible, affordable, and efficient, Matic can help bring millions of new users into the crypto space and create new possibilities for the future of decentralized applications.