Polygon (blockchain)

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

Denominations
Code	$MATIC
Previous names	Matic Network
Development
Original author(s)	Jaynti Kanani, Sandeep Nailwal, Anurag Arjun,^[1] Mihailo Bjelic^[2]
White paper	github.com/maticnetwork/whitepaper
Code repository	github.com/maticnetwork/
Development status	Active
Developer(s)	Polygon Technology
Source model	Open source
Ledger
Ledger start	June 1, 2020; 3 years ago (2020-06-01)
Block time	2.3 seconds
Block explorer	polygonscan.com
Website
Website	polygon.technology

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

History

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] In February 2021, the project was rebranded as Polygon Technology. 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.^[4][5]

In December 2021, Polygon disclosed a security vulnerability that resulted in the theft of 801,601 MATIC tokens.^[6] 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.^[7] In November 2022, JPMorgan Chase & Co executed its first live trade on a public blockchain, using Polygon and modified Aave.^[8] 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.^[9][10]

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.^[11] Alethea AI in January 2023 began creating a line of NFTs through Polygon.^[12] 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.^[13] The Fox Network began working with Polygon on a blockchain project in 2023.^[14][15] TIME in 2023 named Polygon Labs one of the Time100 Most Influential Companies of the year.^[16] In February 2024 Polygon Labs laid of 60 employees, or around 19% of its staff.^[17][18]

Technology

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

In July 2022, Polygon participated in Disney's 2022 acceleration program to expand into augmented reality, NFTs, and AI.^[19][20]

In October 2022, the Indian Police in Firozabad started using Polygon for reporting crimes.^[20]

References

1. "Matic Whitepaper". github.com. Matic Network. Retrieved 19 August 2022.
2. (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. "Crypto Firm Polygon Makes $500 Million Buy for Ethereum Push". bloomberg.com. 9 December 2021. Retrieved 8 April 2022..
5. "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.
6. Maishera, Hassan (2021-12-30). "Polygon (MATIC) Reveals it was Hacked Earlier this Month". FXEmpire – via Yahoo.
7. "Polygon raises $450 mln from Sequoia Capital India, SoftBank Vision Fund 2, others". Reuters. 2022-02-10.
8. "JPMorgan Executes Its First DeFi Trade Using Public Blockchain". Bloomberg. 2 November 2022. Retrieved 17 March 2024.
9. Martin, Mitchell. "Trump NFTs Offer Adoring 45,000 Views Of Former President". Forbes. Retrieved 2022-12-17.
10. "'Losing the plot': Trump mocked after announcing superhero card collection". the Guardian. 2022-12-15. Retrieved 2022-12-17.
11. Dale, Brady (4 December 2023). "Polygon blockchain gave DraftKings unique yield: CoinDesk". Axios. Retrieved 17 March 2024.
12. Takahashi, Dean (19 January 2023). "Alethea AI debuts generative AI on Polygon blockchain". venturebeat Gamesbeat. Retrieved 17 March 2024.
13. 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.
14. Wiggers, Kyle (9 January 2024). "Fox partners with Polygon Labs to tackle deepfake distrust". TechCrunch. Retrieved 17 March 2024.
15. Melinek, Jacquelyn (14 March 2024). "Blockchain tech could be the answer to uncovering deepfakes and validating content". TechCrunch. Retrieved 17 March 2024.
16. Steinberg, Don (2023). "Time100 Most Influential Companies 2023". TIME. Retrieved 17 March 2024.
17. "Tether had 'record-breaking' net profits in Q4, Polygon Labs does layoffs and hackers steal $112M of XRP". TechCrunch. 1 February 2024.
18. Melinek, Jacquelyn (1 February 2024). "Polygon Labs lays off 60 employees, about 19% of its staff, CEO says". TechCrunch. Retrieved 16 March 2024.
19. "Polygon's MATIC Soars After Disney Deal As Crypto Moves Higher". forbes.com. Jul 14, 2022. Retrieved 15 July 2022.
20. "Firozabad Police to use Polygon blockchain technology to register complaints". India Today. Retrieved 2022-11-03.