In 2021, we are watching a rapid increase of fees on the Ethereum network.
By: Stake Service
Tags: Matic Network, Polygon Network, Proof Of Stake, Network, Blockchain

In 2021, we are watching a rapid increase of fees on the Ethereum network.

The reason for that was the inability of the blockchain to process a large amount of transactions. And that became a problem for users. To solve it, many developers began to transfer their applications to Layer 2 solutions, which help to increase throughput, and, consequently, to reduce fees. One of these solutions is the Polygon project (before 2021 — Matic Network), which we will talk about in this article.

So, Polygon is a Layer 2 solution for the Ethereum blockchain, or as it is also called by developers — the Internet of Blockchains.

Layer 2 (L2) solutions are projects deployed on top of the basic blockchains.

In simple terms: projects that are transferred to Polygon remain in the Ethereum ecosystem, but they are not affected by the problems of network overload and high fees.

How does it work?

The main component is the Polygon SDK. It is a modular, flexible framework that supports creating and connecting two main types of solutions:

Secure chains (Plasma Chains) are Layer 2 chains that were created to solve scaling problems. They rely on Ethereum to ensure security instead of creating their own pool of validators. In addition to the Plasma Chain, it is also possible to create other basic Layer 2 solutions, such as: Optimistic Rollups, ZK rollup chains, independently operating chains (blockchains), or any other elements of the network infrastructure required by the developer. This solution is suitable for applications that require a high level of security, and also for young projects that are unable to create a sufficiently decentralized and secure pool of validators. Autonomous chains (side-chains) are Ethereum side-chains with their own pool of validators (and this means they are fully responsible for their security). Such chains offer a high level of independence and flexibility with a lower level of decentralization and security. At the same time, they can be configured so that they partially inherit security from Ethereum. A prime example of such a chain is the Matic POS Chain, which uses Ethereum to determine validator rates and periodic finality checkpoints. Such chains are suitable for projects that do not require a high level of security, and projects that are able to create a sufficiently decentralized and secure pool of validators.

All transactions in Polygon are confirmed by validators for a small reward at a lower energy consumption, which allows not overloading the main network.

Moreover, to improve the developer experience and to provide a better support, as well as to expand the functionality and capabilities, the Polygon SDK will offer support solutions and products, such as:

· Inter-network messaging protocols and modules;

· Data availability services;

· General security services;

· Adapters for external blockchain networks;

· Application-specific modules;

· Enterprise modules and products;

· Premium products and solutions.

It is also worth mentioning about the high performance provided by the use of the Polygon platform. In a single side-chain, with a block confirmation time of two seconds, Polygon provides up to 7000 transactions per second. This speed allows you to make payments faster and more reliably than through the centralized banking systems that are familiar to most: Visa, Mastercard, and so on.

As mentioned earlier, in 2021 there was a rebranding, which gave to the project name Polygon. At the same time, the internal token retained the name Matic. Let’s also talk a little bit about the coin itself. To date, not all issued Matic tokens are circulating, as their issue is carried out in stages. The schedule of their release is calculated until December 2022.

Key figures for June 1'st 2021: