Cryptocurrency is not just a fad; it's a future that's racing towards us. And at the forefront of this future are countless cryptocurrencies, each with their own twist to the underlying technology. One such groundbreaking innovator is Polygon, previously known as MATIC, a solution eagerly awaited within the crypto community for its potential to revolutionise blockchain. So what is MATIC and how does it work?
What is Polygon MATIC and how does it work?
At its core, Polygon is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. It seeks to tackle the inefficiencies currently plaguing centralised financial systems by providing a scalable and flexible infrastructure for dApps (decentralised applications). The original token underpinning the Polygon framework was called MATIC, which is now often referred to as the 'history' token, as Polygon encompasses more tokens and aspects than just MATIC.
In a nutshell, Polygon is Ethereum's biggest ally, designed to help it overcome its scalability issues (limited by the number of transactions it can process per second) through a layer 2 scaling solution. Think of Polygon as Ethereum's Robin to its Batman: a sidekick performing vital duties, ensuring the hero can attend to the bigger picture.
MATIC tokens are used to power the Polygon ecosystem. They are the utility tokens that participants use when interacting with the Polygon network. MATIC holders can delegate, secure, and participate in the network's decision-making processes, parametrize the network, and pay for the usage of the transaction and computation services on Polygon.
What's the difference between Polygon and MATIC?
Polygon and MATIC have become somewhat intertwined in the minds of investors, often being used interchangeably, but there's a distinction worth noting. MATIC was the original token introduced in 2017, representing shares owned by various participants in the Polygon ecosystem.
However, in February 2021, the MATIC officially rebranded to Polygon (or sometimes just 'MATIC', for nostalgic reasons) to reflect the broader and increasingly diverse ecosystem it was designed to support.
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What can you use Polygon (MATIC) for?
For the average user, MATIC can serve numerous utility functions within the Polygon ecosystem. Users can stake MATIC to secure the network and receive staking rewards in return initiate transactions, and pay for decentralised exchange services within the Polygon network.
Most importantly, MATIC as part of the larger Polygon framework gives users environment flexibility, allowing them to leverage different execution environments on one platform. It provides developers with the choice to pick and deploy a customised blockchain that suits their needs, ranging from simple and quick execution to fully secure network setups.
Can you trade Polygon (MATIC) on Skilling?
Yes, you can! Skilling offers Matic (MATIC) as a tradeable asset through CFDs (contracts for difference). This means that you can speculate on price movements without owning the actual asset. With CFDs, you can potentially profit whether prices go up or down, making it a versatile tool for traders looking to capitalise on market volatility.
Here's how to get started with trading Polygon (MATIC):
- Sign up for a Skilling trading account for free.
- Search for Polygon (MATIC) from the 60+ cryptos we offer.
- Open a trade and go long or short.
Conclusion
Polygon has emerged as one of the most exciting entities in the field of blockchain and cryptocurrencies. By offering a comprehensive solution to Ethereum's scalability issues, it's setting the stage for widespread adoption of decentralised applications. As an investor or trader, understanding the intricacies of Polygon, and knowing where and how to trade MATIC, can be a game-changer in your cryptocurrency journey. However, don't forget to take proper risk management.
FAQs
What is Polygon (MATIC)?
Polygon, formerly known as Matic Network, is a Layer 2 scaling solution that aims to provide faster and cheaper transactions on the Ethereum blockchain. MATIC is the native utility token of the Polygon network.
What is the difference between Polygon and MATIC?
Polygon is the name of the network, while MATIC is the network's native utility token. MATIC is used for transaction fees and participation in proof-of-stake consensus.
What is Polygon Crypto (MATIC) used for?
MATIC has multiple uses within the Polygon ecosystem. It’s used to pay transaction fees, participate in the network’s proof-of-stake consensus mechanism, and contribute to the network’s security through staking.
What is the main advantage of the Polygon network?
The primary advantage of the Polygon network lies in its ability to solve Ethereum's scalability problems. By providing a layer 2 scaling solution, which includes sidechains, plasma, and other scaling approaches, Polygon offers faster and cheaper transactions on top of the Ethereum blockchain.
Is MATIC a good investment?
As with any investment, several factors need to be considered before determining the potential value of an asset. MATIC, now known as Polygon, has shown promise due to the network's growth, the increasing number of projects being built on it, and its role in addressing Ethereum's scalability. However, it’s important to conduct your own research and consider the token’s volatility and market conditions before investing.
Where can I learn more about trading Polygon (MATIC)?
There are various resources available to learn more about trading Polygon, including financial news, forums, and trading education platforms. Additionally, keeping up with the latest developments and project releases from the Polygon ecosystem will provide valuable insights for trading MATIC.
