Polygon (blockchain)

Last updated
Polygon
Polygon Blockchain Matic Logo.svg
Denominations
Code$MATIC
Previous namesMatic 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 statusActive
Developer(s) Polygon Technology
Source modelOpen source
Ledger
Ledger startJune 1, 2020;3 years ago (2020-06-01)
Block time2.3 seconds
Block explorer polygonscan.com
Website
Website polygon.technology

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.

Contents

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]

Related Research Articles

Proof-of-stake (PoS) protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. This is done to avoid the computational cost of proof-of-work (POW) schemes. The first functioning use of PoS for cryptocurrency was Peercoin in 2012, although the scheme, on the surface, still resembled a POW.

<span class="mw-page-title-main">Ethereum</span> Open-source blockchain computing platform

Ethereum is a decentralized blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, ether is second only to bitcoin in market capitalization. It is open-source software.

A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization managed in whole or in part by decentralized computer program, with voting and finances handled through a blockchain. In general terms, DAOs are member-owned communities without centralized leadership. The precise legal status of this type of business organization is unclear.

A blockchain is a distributed ledger with growing lists of records (blocks) that are securely linked together via cryptographic hashes. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Since each block contains information about the previous block, they effectively form a chain, with each additional block linking to the ones before it. Consequently, blockchain transactions are irreversible in that, once they are recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

A decentralised application is an application that can operate autonomously, typically through the use of smart contracts, that run on a decentralized computing, blockchain or other distributed ledger system. Like traditional applications, DApps provide some function or utility to its users. However, unlike traditional applications, DApps operate without human intervention and are not owned by any one entity, rather DApps distribute tokens that represent ownership. These tokens are distributed according to a programmed algorithm to the users of the system, diluting ownership and control of the DApp. Without any one entity controlling the system, the application is therefore decentralised.

<span class="mw-page-title-main">Cardano (blockchain platform)</span> Public blockchain platform

Cardano is a public blockchain platform. It is open-source and decentralized, with consensus achieved using proof of stake. It can facilitate peer-to-peer transactions with its internal cryptocurrency, ADA.

<i>CryptoKitties</i> 2017 blockchain game on Ethereum

CryptoKitties is a blockchain game developed by Canadian studio Dapper Labs. The game allows players to buy, sell, and create non-fungible tokens (NFTs) using on Ethereum. These NFTs represent virtual cats. The game's popularity in December 2017, congested the Ethereum network, causing it to reach an all-time high in the number of transactions and slowing it down significantly.

<span class="mw-page-title-main">Polkadot (cryptocurrency)</span> Cryptocurrency

Polkadot is a blockchain platform and cryptocurrency. The native cryptocurrency for the Polkadot blockchain is the DOT. It is designed to allow blockchains to exchange messages and perform transactions with each other without a trusted third-party. This allows for cross-chain transfers of data or assets, between different blockchains, and for decentralized applications (DApps) to be built using the Polkadot Network.

<span class="mw-page-title-main">Non-fungible token</span> Unique and non-interchangeable data

A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody and require few or no coding skills to create. NFTs typically contain references to digital files such as artworks, photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible.

<span class="mw-page-title-main">Tron (cryptocurrency)</span> Blockchain computing platform

TRON is a decentralized, blockchain-based operating system with smart contract functionality, proof-of-stake principles as its consensus algorithm and a cryptocurrency native to the system, known as Tronix (TRX). It was established in March 2014 by Justin Sun and since 2017 has been overseen and supervised by the TRON Foundation, a non-profit organization in Singapore, established in the same year. It is open-source software.

<span class="mw-page-title-main">Avalanche (blockchain platform)</span> Open-source blockchain computing platform

Avalanche is a decentralized, open-source proof of stake blockchain with smart contract functionality. AVAX is the native cryptocurrency of the platform.

<i>CryptoPunks</i> Pioneering non-fungible token on Ethereum

CryptoPunks is a non-fungible token (NFT) collection on the Ethereum blockchain. The project was launched in June 2017 by the Larva Labs studio, a two-person team consisting of Canadian software developers Matt Hall and John Watkinson. The experimental project was inspired by the London punk scenes, the cyberpunk movement, and electronic music artists Daft Punk. The crypto art blockchain project was an inspiration for the ERC-721 standard for NFTs and the modern crypto art movement, which has since become a part of the cryptocurrency and decentralized finance ecosystems on multiple blockchains.

<span class="mw-page-title-main">Solana (blockchain platform)</span> Public blockchain platform

Solana is a blockchain platform which uses a proof-of-stake mechanism to provide smart contract functionality. Its native cryptocurrency is SOL.

Web3 is an idea for a new iteration of the World Wide Web which incorporates concepts such as decentralization, blockchain technologies, and token-based economics. Some technologists and journalists have contrasted it with Web 2.0, wherein they say data and content are centralized in a small group of companies sometimes referred to as "Big Tech". The term "Web3" was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2021 from cryptocurrency enthusiasts, large technology companies, and venture capital firms. The concepts of Web3 were first represented in 2013.

OpenSea is an American non-fungible token (NFT) marketplace headquartered in New York City. The company was founded by Devin Finzer and Alex Atallah in 2017.

Nervos Network is a blockchain platform which consists of multiple blockchain layers that are designed for different functions. The foundational layer is known as the Common Knowledge Base, whilst the native cryptocurrency of this layer is called CKB. This foundational layer uses a proof-of-work consensus model. Smart contracts and decentralized applications can be deployed on any layer.

<span class="mw-page-title-main">Worldcoin</span> Iris biometric cryptocurrency project

Worldcoin is an iris biometric cryptocurrency project developed by San Francisco- and Berlin-based Tools for Humanity. Founded in 2019 by OpenAI chief executive Sam Altman, Max Novendstern, and Alex Blania, it is backed by VC Andreessen Horowitz.

<span class="mw-page-title-main">Injective Labs</span>

Injective Labs is a research and development company co-founded by Eric Chen and Albert Chon in 2018. Injective Labs focuses on creating Web3 infrastructure and finance technologies. It is one of the core contributors to Injective.

<span class="mw-page-title-main">ERC-721</span> A technical standard for NFTs

The ERC-721 Non-fungible Token Standard, is a technical framework, defining a set of rules and interfaces for creating and managing unique, non-fungible tokens (NFTs) on the Ethereum blockchain. ERC-721 is recognized for formalizing the concept of an NFT and establishing the foundation of the multi-billion dollar digital collectibles eco-system that emerged alongside its adoption. It is one of the most widely used NFT standards across use cases and has been utilized in various high profile projects.

The Aave Protocol is an open-source, decentralized finance (DeFi) protocol built on the Ethereum blockchain and released in 2020. It is one of the largest cryptocurrency liquidity protocols. The Aave Protocol uses smart contracts to automate processes, including distributing funds and handling collateral.

References

  1. ↑ "Matic Whitepaper". github.com. Matic Network. Retrieved 19 August 2022.
  2. ↑ "Polygon Litepaper" (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. 1 2 "Firozabad Police to use Polygon blockchain technology to register complaints". India Today. Retrieved 2022-11-03.
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