What is Polygon (Matic) and Why All The Hype?


Polygon (Matic) is a newer blockchain that was launch on March 9th 2021 and it a token of the Ethereum block chain. It's main function is as a layer two token that aims at providing faster and cheaper transactions on Ethereum using side chains.

If this chain sounds familiar to others you'd be right. We already have these functions in platforms such as Polkadot (DOT)

 

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How Polygon (Matic) Works

In short how these platforms work is by running as a side chain to Ethereum. That means you deposit your Ethereum into Polygon(Matic) via a Polygon smart contract to interact within the Polygon platform and can then later swap out to Ethereum. You still have to pay that high fee for the Ethereum transaction in and back out however it makes applications such as DeFi possible without massive fees.

Polygon - Matic Numbers

  • Currently has 6.2 Billion MATIC in circulating supply with a max supply cap of 10 billion

  • As of writing this the price of one is $2.26 up 35% in the last 24 hours off from it's all time high about a week ago of $2.83

  • Marketcap: $14 billion

  • Recently supported by Mark Cuban

  • MATIC token is used to pay transaction fees and participate in proof-of-stake consensus.

  • Polygon is the new name of the token and the matic name removed slowly

The Negatives of Polygon - Matic

There are already a number of blockchains that do this. Polygon(Matic) is just a recent in this long list. What they need to do are two things.

  1. Hope that Ethereum transaction fees remain high. If they don't they pretty much have no other use case. This chain is simply piggybacking off of high fees.

  2. Apps They need to build apps/dapps that use the token. This includes DeFi as the primary

Does this make it a good investment?

For the most part I feel this is over valued in it's current state only supported by hype from Mark Cuban. I haven't yet seen a functional platform that uses this token nor do I know how close on the development it is. I put this a a no buy now but long term buy on the next dip. One such recently happened to $1.83 about two weeks ago. They are in talks with a number of Ethereum DeFi platforms but until implementation it could be a while. My hopes are the CUBFinance taps into this and the hype some how. WLEO

*This article is for entertainment purposes only and not investment advice. Be sure to do your own research and know your risks before investing.

 

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