First of all, Polygon and MATIC are not the same things. Polygon is a scalable solution ecosystem for blockchain that can be an L2 (Level 2) solution or a side chain.
The rebranding of Polygon in 2021 will greatly expand usability. It’s no longer the one-dimensional L2 scaling solution it used to be. Moving to ETH 2.0 will deprecate Polygon.
Polygon and MATIC
MATIC tokens provided significant alpha, returning over 10,000% of shareholders. The token is currently trading at $2.25 after falling in previous ATH resistance testing. Even if you buy a rebranded token in February 2021 and buy it after the May crash, you can sit back comfortably with a return of over 200. Moreover, we do not believe that a full transition to Ethereum 2.0 will render the Polygon service obsolete in the face of ever-increasing interest in cryptocurrencies, institutional adoption, and measurable usefulness.
MATIC refers to Polygon tokens used for a variety of use cases, both on the Ethereum network and on Polygon’s own network. For the sake of simplicity, it has striking similarities to Ethereum and Ether, Bitcoin and Bitcoin. Here, the former represents the L1 network and blockchain, the latter the native currency of the blockchain. Before rebranding in February 2021, the chain itself was Matic.
Matic was founded in 2017 by three Indian developers inspired by Joseph Poon’s plasma research. The team launched the main net in June 2020, and at the time, Matic’s goal was a largely one-dimensional solution designed solely to scale Ethereum’s low transaction throughput. For those familiar with the Ethereum blockchain, network fees can become quite outrageous during peak network activity like 2017 when the rise of Crypto Kitties hit the Ethereum network, and in 2020, with the rise of Decentralized Finance (DEFI), Point.
Ethereum Trilemma
Due to limited network bandwidth and a lack of block space, there will be a surge in trading activity, a by-product of the gas supply war, during this period. Moreover, the industry is well aware of the scalability trilemma Ethereum faces. As a result, the Ethereum network has decided to prioritize security and decentralization at the expense of scalability. This trilemma has since spread to Ethereum as well as many other blockchains. These achieve scalability at the expense of the other two blockchains.
Ethereum’s three biggest problems include low bandwidth, poor user experience (UX), and limited developer options. Imagine an ecosystem of Dapps (Decentralized Applications), games, and DEXs (Decentralized Exchanges). This is the concern. This problem will be gradually addressed as Ethereum moves to 2.0 and introduces sharding and native L2 scaling solutions. But the network is currently using Polygon as its native solution to combat low bandwidth. Which is probably not an easy ad-hoc solution. A lot of people seem to think Polygon is here.
Prior to the 2021 rebrand, the Matic network existed as a single description and as a one-dimensional solution to Ethereum’s low-throughput problem, increasing network scalability and overall transaction speed. Matic used the Plasma Chain to process off-chain transactions prior to completion on Ethereum. Given that Ethereum is at the forefront of the cryptocurrency revolution and contains the largest number of decentralized applications, solutions that improve the weakness of the network are essential to free up space from the barriers to widespread adoption and user adoption.
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