Résumé

At present, it is reasonable to assume that the future is multi-chain. It is likely that instead of a single blockchain completely dominating the market, there will be a multitude of interconnected networks, each with unique properties, trust assumptions, performance and security.

Polygon aims to bring this future closer to reality by providing a framework for creating scalability solutions compatible with Ethereum. Their proof-of-stake sidechain has generated some interest within the Bitcoin and crypto community. Let's take a closer look.

Introduction

Ethereum's long-awaited scaling roadmap is finally starting to come to fruition, and the Polygon project is part of those efforts.

You may have heard of Cosmos and its “Internet of Blockchains” vision through the Interchain Communication (IBC) protocol, where messages can move between different blockchains that have implemented the protocol.

Polygon's vision is somewhat similar, but it adapted this concept specifically for the Ethereum ecosystem. The idea is that developers can easily launch their Ethereum-compatible scaling solutions or even standalone blockchains.

The project was initially named Matic Network, but was later renamed Polygon, as the scope of the project moved from a simple Layer 2 (L2) solution to a network of networks.

What is Polygon (MATIC)?

Polygon is a framework for building blockchain networks and scalability solutions compatible with Ethereum. Polygon is more of a protocol than a single solution. This is why one of the biggest added values ​​of the project is the Polygon SDK, which allows developers to create these networks compatible with Ethereum.

However, you may have heard of the Polygon Network, a Proof of Stake (PoS) sidechain and one of the first active products in the Polygon ecosystem. A sidechain is essentially a parallel chain connected to another blockchain.

Sidechains can offer several benefits, including increased transaction throughput and reduced fees. If you have used Polygon Network, you know that it is incredibly fast and very cost-effective compared to Ethereum. Despite this, there are some concessions to be made for this performance. We will come back to this later.

As Polygon supports the Ethereum Virtual Machine (EVM), existing applications can be transferred with ease. This can provide users with an experience comparable to Ethereum, but with the previously mentioned higher throughput and lower fees.

But what can you do as a user on Polygon? Unsurprisingly, similar things you can do on Ethereum, but much cheaper and faster. Some of the most popular DeFi dapps have already been deployed there, such as Aave, 1inch, Curve and Sushi. But there are also some native apps that don't exist anywhere else, such as QuickSwap and Slingshot.

Polygon's development is led by its founders: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic.

How does Polygon work?

The Polygon infrastructure supports two main types of Ethereum-compatible networks: secure blockchains and autonomous blockchains. A rollup is an example of a secure blockchain, while a sidechain is an example of a standalone blockchain.

Secure blockchains rely on the infrastructure of the blockchain they are attached to, so they do not need to implement their own security model. In contrast, standalone blockchains must manage their own security. This means that secure blockchains tend to offer a higher level of security, while standalone blockchains offer more flexibility for specific needs.

So, what about the Polygon network? The Polygon sidechain is secured by its own set of validators (validator pool) and must submit checkpoints to Ethereum from time to time. This is why some people say that lateral blockchains are not a “pure” layer 2 solution. They must manage their own security instead of relying on the security of Ethereum. This can be a crucial distinction, and we'll return to it in a little more detail when discussing rollups.

In the future, the Polygon platform aims to support a wider variety of scalability solutions, including zero-knowledge (zk) rollups, optimistic rollups, as well as Validum blockchains. Once these scalability solutions are available, developers will have more tools to develop innovative applications, solutions and products. Additionally, we expect all of them to be compatible with existing Ethereum tools and wallets, such as MetaMask.

MATIC token use cases

Despite the rebranding, the MATIC token has retained its name. It is used to pay gas costs on the network and participate in governance. If you want to stake your MATIC tokens, you can do so on Binance Earn or via the Matic web wallet created by the Polygon team.

Polygon Gateway

The Polygon Gateway is the most convenient way to transfer your funds from another Blockchain to the Polygon sidechain. Please note that you will still have to pay mainnet transaction fees since the gateway transaction takes place on the mainnet.

However, once the process is complete, you will be able to enjoy the low fees and fast transactions that Polygon offers. Otherwise, some centralized exchanges (CEX) also offer direct withdrawal on the Polygon network.

Comparison of sidechains and rollups

In general, there is no consensus on whether sidechains can be considered a level 2 solution, in the same way as a rollup. This distinction is important to understand if you want to explore the world of multi-chains and consider the different trade-offs.

All have different trust assumptions, security, performance, user experience, and developers. As secure chains, rollups are one of the most promising Layer 2 scaling solutions, as they inherit much of the security of Ethereum.

However, this is not the case for other solutions like the Polygon sidechain. This does not mean that it is not secure, but that if malicious actors were to conspire, they could (at least in theory) take control of the network. No one has any plans to do this yet, but it's worth mentioning. Using a sidechain involves an element of trust, not only regarding the validators, but also the gateway between the two chains.

It is also important to consider other trade-offs. When you use the ETH mainnet, you pay higher transaction fees for slower transaction times, but you also benefit from the strongest security guarantees and lowest possible level of third-party trust.

If you use a rollup, you will pay less, benefit from comparable security and faster transaction times. When you use a sidechain, you pay a fraction of what you would pay even on a rollup, but you compromise on security.

So what is the best solution? There is no simple answer. Both have preferred use cases and are complementary to create a useful ecosystem.

For example, a social media reputation system needs exorbitant transaction throughput, very low fees, but perhaps not the highest security guarantees, since it is not vital infrastructure . In this case, sacrificing security may be worth it for a higher level of performance.

On the other hand, storing the treasury of a national state on a blockchain requires the highest possible level of security, and this is worth paying for, especially if there is no need for a super-fast transaction.

Developers and project teams are constantly experimenting and studying how each building element can fit into the bigger picture. It's worth considering scalability because there may be scalability solutions for many different use cases in different industries.

To conclude

Polygon (MATIC) is a framework for creating blockchain scalability solutions compatible with Ethereum. The Polygon network is a Proof of Stake (PoS) sidechain that enjoys decent adoption thanks to its speed, low transaction cost and MVE compatibility.

Polygon aims to offer more scalability solutions in the future, including zk rollups, optimistic rollups, and autonomous blockchains, which should help create a more dynamic and interconnected second-layer ecosystem for Ethereum.