Polygon Blockchain Setting Up New Bounds in the World of Decentralization and Digital EcosystemJun 09, 2022
Polygon Blockchain Setting Up New Bounds in the World of Decentralization and Digital Ecosystem
Formerly known as the MATIC Network, Polygon is an Ethereum-based Layer-2 scalability platform. It allows interchain communication, the development of new chains, and interoperability compatible with the Ethereum network. The platform refers to itself as “Ethereum’s Internet of Blockchains" as one of its preeminent missions is to integrate scalable solutions to create the foundation for a multichain Ethereum ecosystem.
Since Polygon is a newly introduced technology still under development, regular updates are introduced to embellish the framework for further enhancement. This article aims to discuss the implementation and application of these new updates in reference to their impact on blockchain technology and the amount of potential they possess.
Understanding How Polygon Works?
Polygon utilizes its dynamic framework and tenacious protocol to provide interoperability and communication amongst blockchains within Ethereum. It has an intricate set of modules and systems to ensure its functionality. The following is a breakdown of some of the major elements that combine to enable Polygon to function at its optimal potential.
Proof of Stake (PoS) Sidechain
Blockchains launched on the Ethereum network are based on a Proof-of-Stake sidechain. Thus, enabling transactions to be finalized on the Ethereum chain after being reviewed by a network of validators off the blockchain. This reduces the burden off of the main blockchain and allows a smoother flow of traffic-free of congestion. Off-chain validation of transactions through side networks also results in lower gas fees and efficient transactions for developers. Currently, Polygon's PoS sidechain acts as a Commit chain to the Ethereum main chain supporting transactions concerning over 80 dApps without congestion.
Robust Scaling Mechanism
In addition to its Plasma and PoS sidechains, Polygon also appropriates a wide network of complex scaling modules to allow wide adaptability of the Ethereum network. Its "Optimistic Rollups," for example, provides a layer-2 solution for off-chain secure transactions. In addition, Polygon is also developing Validium chains, Shared security chains, ZK rollups, and other scaling protocols to allow interchain communication.
The Polygon Network supports two types of chains, Stand-alone and MATIC PoS chains. The former is self-sovereign chains that allow external chains to communicate with the Ethereum network, while the latter refers to secure chains compatible with the Ethereum network allowing intra-network communication.
Since Stand-alone chains have their own pool of validators, they provide developers with absolute autonomy and independence and thus act as a suitable option for established projects and enterprises. Security-focused projects and start-ups, on the other hand, can benefit greatly from MATIC PoS chains as they provide developers with a professional pool of validators within or outside the Ethereum network.
Layer-2 scaling solutions provided by Polygon introduce off-chain alternatives to the transactional activity taking place on the Ethereum network. For example, they use sidechains to execute transactional confirmations that are processed and executed on the mainchain. This reintroduces system proficiency throughout the network and reduces congestion.
Polygon’s native token MATIC is used by developers to create dApps on Polygon by paying tokens in exchange for developmental services provided by Polygon. MATIC supports the system that allows data to be transferred and inspected between chains. These tokens can be stored in MATIC wallets where users can stake and invest their tokens independently.
The Polygon NFT Marketplace - Recognizing the First Transitions
The Polygon NFT Marketplace allows users to develop platforms to facilitate the storage, discovery, and exchange of NFTs. Polygon ensures wide access and multichain compatibility to its NFT Marketplace, ensuring a secure and diverse exchange between traders and consumers. The following include unique services provided by the Polygon NFT Marketplace.
Polygon NFT marketplaces allow NFTs to be developed, minted, and traded in a decentralized ecosystem, ensuring secure transactions under its Ethereum-based protocol. It allows users to enjoy the services and incentives offered by Ethereum networks in a more efficient and less costly manner.
Polygon NFT marketplace provides NFT minting services allowing users to integrate digital assets into the Polygon network through minting. Smart contracts are used to determine ownership and dictate replication regulations on minting platforms to ensure secure minting of digital assets. The use of smart contracts also simplifies the process of the renewal of tokens.
Interoperability and Scalability
Multiple transactions can be made simultaneously under a low gas fee and an efficient system provided by the MATIC blockchain network. This allows traders and consumers to partake in multiple purchases in a congestion-free framework. Through the pool of professional validators provided by the Polygon Network, these transactions are verified and secured, providing users with a safe platform for financial exchange and asset distribution.
Independence and Modularity
Since the polygon system is highly customizable, it can be updated and enhanced to fit consumer demands. The exchange of NFTs can be made through platforms with a state-of-the-art trading engine and advanced search filters accounting for an enhanced user experience.
Polygon network also allows sovereign chains to form multichain systems to augment the efficiency of the rate of exchanges made on the system.
NFT marketplaces based on Polygon are operated through smart contracts. Each transaction on the platform is regulated through these simplistic programs uploaded on blockchains. Sales terms and conditions are predetermined on these smart contracts, and transactions are regulated once these terms are met. A smart contract that is once fulfilled is irrevocable, resulting in free of error and secure trade practices.
The Integration with Chainlink - Polygon's Recent Developments
Chainlink VRF provides a gateway for contracts to access random external data via a decentralized passage. Chainlink services are now available on the polygon network, as communicated by recent updates. This launch has enabled the Chainlink Verification Function (VRF) to become the industry's most widely employed Random Number Generator (RNG) for smart contracts.
An upgraded version of this indispensable tool in the form of Chainlink VRF v2 is now live on the Polygon Network. Chainlink VRF v2 can now be employed by developers for on-chain randomness in a number of systems, including the minting of NFTs through decentralized applications, blockchain-based games, and other use cases. Its cost-effective, secure, and efficient services also make Chainlink VRF v2 applicable in the random generation of data for DeFi, DAO governance, and a number of other applications. The following is an overview of Chainlink the on Polygon system.
Cost-Efficient Random Generation
Chainlink VRF v2 allows users to support multiple randomness requests simultaneously with a single token balance allowing for a smoother, less costly, and more efficient generation to process.
Customizable Security Protocols
Users are given the option to dictate the number of block confirmations that must be met after the randomness request transaction is made but before it is delivered, giving users access to an enhanced system reconfigurability.
Optionally Increased Randomness
In this updated version of VRF coordination, users have the option to request multiple random numbers in a single transaction. This further reduces the response latency and service costs.
Subscription owners have the ability to fund random requests for a hundred smart contract IDs with a single balance. This allows for simplified fund management and an enhanced user experience.
Tether $USDT Entering the Polygon Network
Tether’s stablecoin $USDT, which is evaluated to be the largest stablecoin by market capitalization, is now available on the Polygon Network. Tether was initially launched on the Bitcoin but has since expanded to Ethereum and other networks resulting in high liquidity and trading volumes. Tether is expected to play a pivotal role in the development and growth of Polygon's DeFi ecosystem.
Since its exchange rate is associated with and driven directly by the US Dollar, Tether is a cryptocurrency of high value and importance. Thus, its integration into Polygon will be of remarkable advantage to Polygon’s 19000 DApps and 8000 teams who will benefit from this alliance. It will not only provide an additional stablecoin option to Polygon users but will also reduce market volatility. Investors will have a well-developed and steady cryptocurrency to utilize for their financial activity within and across the network. Tether will help the Polygon network thrive and develop further with its high liquidity and stability.
Upon review of Polygon’s current progression and exploration of its future potential, it can plausibly be evaluated that Polygon has the capability to provide a secure platform for Ethereum-based interchain communication. Its recent updates and integration with both Chainlink and Tether provide reasonable evidence for exponential growth.
Polygon has already established itself as a force to be reckoned with in the Scaling solutions industry. It has continued to expand its application with collaborations and development. With further updates and wide application, Polygon has the potential to be a major source of multichain solutions in the Ethereum network.
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