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### What is Polygon ? | ||
# Unveiling Polygon: Revolutionizing Blockchain Transactions | ||
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Polygon, which is a “Layer 2” scaling solution (or “sidechain”) that’s emerged to provide faster transactions and lower costs for users. It acts as a speedy parallel blockchain running alongside the main Ethereum blockchain. To use it, you can “bridge” some of your crypto over to Polygon, and then interact with a wide range of popular crypto apps that were once exclusive to the main Ethereum blockchain. | ||
![Polygon Logo](https://user-images.githubusercontent.com/95535448/210721120-bef7f540-d9f9-4352-9c1f-bde9abfb41fc.png) | ||
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![polygon-matic-logo-54F492826D-seeklogo com](https://user-images.githubusercontent.com/95535448/210721120-bef7f540-d9f9-4352-9c1f-bde9abfb41fc.png) | ||
## Introduction to Polygon | ||
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Polygon, a cutting-edge "Layer 2" scaling solution or "sidechain," has emerged as a game-changer, aiming to enhance the speed and reduce costs associated with blockchain transactions. Serving as a swift parallel blockchain alongside Ethereum, Polygon allows users to interact with popular crypto apps that were once exclusive to the Ethereum mainnet. | ||
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## The MATIC Cryptocurrency | ||
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## What is MATIC? | ||
Polygon has its own cryptocurrency, called MATIC, which is used to pay fees on the Polygon network, for staking, and for governance (which means that MATIC holders get to vote on changes to Polygon). You can also buy and sell MATIC via Coinbase and other exchanges. | ||
Polygon introduces its native cryptocurrency, MATIC, as the fuel for its network. MATIC serves multiple purposes, including payment for network fees, participation in staking, and governance. MATIC holders wield the power to vote on crucial changes within the Polygon ecosystem. The name MATIC originated from Polygon's earlier identity as Matic Network before its rebranding in 2021. | ||
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The name MATIC comes from an earlier stage in Polygon’s development. After launching as Matic Network in October 2017, developers rebranded as Polygon early in 2021. | ||
## How Polygon Operates | ||
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## How does Polygon work? | ||
You can picture Polygon as being like an express train on a subway — it travels along the same route as the regular train, but it makes fewer stops and thus moves much faster. (In this analogy the main Ethereum blockchain is the local train.) Polygon uses a variety of technologies to create this speedy parallel blockchain and link it to the main Ethereum blockchain. | ||
Picture Polygon as an express train running parallel to the Ethereum blockchain, making transactions faster and more efficient. The network employs various technologies to create this speedy parallel blockchain and links it seamlessly to the Ethereum mainnet. | ||
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To create new MATIC and secure the network, Polygon uses a proof-of-stake consensus mechanism — which means that one way you earn money on MATIC you hold is via staking. | ||
### Proof-of-Stake Consensus Mechanism | ||
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- Validators do the heavy lifting — they verify new transactions and add them to the blockchain. In exchange, they may receive a cut of fees and newly created MATIC. Becoming a validator is a commitment that requires running a full-time node (or computer) and staking your own MATIC. If you make an error or act maliciously (or even if your internet connection is glitchy) you could lose some of your staked MATIC. | ||
- **Validators:** These key players validate transactions and add them to the blockchain. In return, validators may receive fees and newly created MATIC. However, this role demands a substantial commitment, involving running a full-time node and staking MATIC. Errors or malicious actions could lead to the loss of staked MATIC. | ||
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- **Delegators:** Opting for a less intensive approach, delegators stake their MATIC indirectly through trusted validators. Despite being a lower-commitment strategy, it requires careful research. Missteps by the validator could result in the partial or complete loss of staked MATIC. | ||
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- Delegators stake their MATIC indirectly via a trusted validator. This is a much lower-commitment version of staking. But it still requires research — if the validator you pick acts maliciously or makes errors you could lose some or all of your staked MATIC. | ||
## Navigating the Polygon Network | ||
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## How do you use the Polygon network? | ||
The Polygon network offers a myriad of possibilities, mirroring the functionalities of the Ethereum network but with significantly lower fees, often measured in fractions of a cent. Users can explore decentralized exchanges like QuikSwap and SushiSwap, dive into yield-generating lending platforms like Aave, engage in NFT markets like OpenSea, or participate in "no-loss prize games" such as Pooltogether. | ||
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The Polygon network allows you to do many of the same things the main Ethereum network allows, but with fees that are often a fraction of a cent. You can try decentralized exchanges like QuikSwap or SushiSwap, yield-generating lending and savings protocols like Aave, NFT markets like OpenSea, or even “no-loss prize games” like Pooltogether. | ||
### Getting Started | ||
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To try the Polygon network, you need to send some crypto to a compatible crypto wallet like Coinbase Wallet. You can then “bridge” some of your crypto — stablecoins are a popular choice for this — to the Polygon network. You’ll also need to bridge some MATIC to make transactions, but even a dollar’s worth is plenty because fees are so low. | ||
1. **Crypto Wallet:** Begin by sending crypto to a compatible wallet like Coinbase Wallet. | ||
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2. **Bridging Assets:** Transfer some of your crypto, with stablecoins being a popular choice, to the Polygon network. Additionally, bridge a nominal amount of MATIC for transactions, as the network's low fees make even a small amount sufficient. | ||
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Low fees and near-instant transactions make the Polygon network an excellent way to gain some real-world experience trying out DeFi protocols. | ||
## Conclusion: Redefining the Crypto Journey | ||
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With minimal fees and near-instant transactions, the Polygon network emerges as an ideal platform for gaining real-world experience with DeFi protocols. Step aboard the express train of blockchain innovation, and let Polygon redefine your crypto journey with its speed, efficiency, and diverse opportunities. |