Polygon (MATIC) is one of Ethereum’s premier scaling solutions.
This article addresses critical questions such as “What is
Polygon?”, “What is Polygon crypto?” and the specifics of “What is
MATIC crypto?”. We look at Polygon’s unique blockchain architecture
and its role in the evolution of the Ethereum blockchain. In
addition, we take an in-depth look at MATIC, the blockchains’
native token, and its transformation into Polygon 2.0. Last but not
least, we also examine key partnerships and try to make a MATIC
price prediction. What Is Polygon MATIC? Polygon, birthed as the
Matic Network in 2017, stands as a revolutionary “Layer 2” scaling
solution for Ethereum’s blockchain. It’s designed to provide a
faster, more efficient parallel to Ethereum’s main blockchain,
addressing critical issues like high gas fees and network
congestion. MATIC, the network’s native cryptocurrency, is pivotal
for network operations, serving multiple functions including
transaction fees, staking, and governance decisions. The rebranding
to Polygon in early 2021 marked a significant evolution, broadening
its scope from just a scaling solution to a multi-layered
ecosystem. Polygon Explained: A Comprehensive Overview Polygon
operates akin to an express lane, paralleling Ethereum’s main
blockchain. It’s a complex system utilizing a variety of
technologies to establish this high-speed blockchain. By “bridging”
assets onto the layer-2, users can interact with popular crypto
applications with greater speed and lower costs compared to
Ethereum’s mainnet. The network’s construction is particularly
ingenious, featuring: Proof-of-Stake (PoS) Consensus Mechanism:
Validators on the network verify transactions and maintain the
blockchain’s integrity. They receive rewards in the form of
transaction fees and newly created MATIC. Delegators, who stake
their MATIC indirectly, also play a critical role, albeit with less
commitment than validators. Layered Architecture: This includes the
Ethereum layer for executing critical components, a security layer
offering validator services, a network layer of sovereign
blockchains, and an execution layer for processing transactions.
Definition And Core Concepts Of Polygon At its core, Polygon is not
just about enhancing transaction speeds but about creating an
interconnected ecosystem of Layer 2 sidechains, which it
ambitiously names the “Internet of Ethereum Blockchains.” This
ecosystem is realized through: Scalability Solutions: Technologies
like Plasma, zkRollups, and Optimistic Rollups are employed, each
tailored for different scalability requirements. Plasma focuses on
off-chain transaction processing, while zkRollups and Optimistic
Rollups offer solutions for bundling numerous transactions into
single Ethereum blocks, thus enhancing throughput. Software
Development Kit (SDK): A crucial element in Polygon’s
infrastructure, the SDK facilitates the development of compatible
decentralized applications. It enables the creation of varied
sidechains, each customizable to specific project needs.
Interoperable Protocol: This framework allows seamless interaction
among Ethereum-compatible blockchains, leveraging Ethereum’s robust
ecosystem while overcoming its inherent limitations. The networks
approach is holistic, targeting not just individual transaction
efficiency but a comprehensive upgrade to Ethereum’s network
capabilities. It’s a bid to create a unified, interoperable
blockchain environment, a leap forward in the blockchain and
cryptocurrency landscape. What Is MATIC? MATIC, the native
cryptocurrency of Polygon, serves as the linchpin in the network’s
functioning. Originating from Polygon’s earlier incarnation as the
Matic Network, MATIC has evolved beyond a mere transactional
currency. It’s utilized for paying transaction fees on the network,
for staking, and significantly, in the governance of Polygon,
granting MATIC holders a say in the network’s future developments.
MATIC’s Proof-of-Stake (PoS) consensus mechanism is central to its
operation. Validators and delegators, who stake their MATIC, are
crucial to the network’s security and integrity. They verify
transactions, add them to the blockchain, and in return, earn MATIC
rewards. This staking mechanism not only ensures network security
but also incentivizes participation and investment in the
ecosystem. How Polygon Stands Out In The Crypto Space Polygon
distinguishes itself in the crowded crypto space through its unique
multi-layered architecture and a comprehensive suite of scaling
solutions. Unlike many blockchain solutions that focus on a single
aspect of performance enhancement, Polygon provides a modular
framework. This framework allows developers to create
Ethereum-compatible networks with varied features, including but
not limited to: Scalability: Polygon effectively addresses
Ethereum’s scalability issues, offering faster transaction speeds
and lower fees through its Layer 2 solutions. Interoperability: By
promoting the interconnection of Ethereum-compatible blockchains,
Polygon facilitates a more integrated and efficient network.
Developer-Friendly Platform: The Polygon SDK empowers developers to
build diverse decentralized applications with ease, without needing
to depart from Ethereum’s well-established environment.
FlexibilityAnd Customization: Projects can choose from different
scaling solutions like Plasma, zkRollups, and Optimistic Rollups,
tailoring their blockchain to their specific needs. Security:
Polygon’s optional ‘security as a service’ layer provides added
protection, enhancing the trustworthiness of the network. Polygon
Partnerships Polygon’s vast array of partnerships across diverse
industries highlights its significant impact and utility in the
real world. These collaborations showcase how Polygon is
integrating blockchain technology into various sectors, ranging
from finance and social media to fashion and sports. Finance
Mastercard: Launched an Artist Accelerator Program to mentor
emerging musical talents using Web3 technologies. Bank of Italy:
Partnered with Polygon and Fireblocks to experiment with tokenized
assets, as part of an initiative to explore this technology.
Nubank: Brazil-based Nubank has partnered with Polygon to expand
its Nucoin loyalty program, benefiting approximately 70 million
customers. Social Media Instagram: Empowering users to mint,
showcase, and sell NFTs directly on Instagram. Reddit: Launched a
limited edition NFT collection called CryptoSnoos, minted on the
Polygon blockchain. Polygon Partnerships in Automobile Bentley
Motors: Collaborated for Bentley’s Genesis NFT collection, minted
on Polygon’s blockchain. Mercedes: Developed Acentrik, a
blockchain-based data-sharing platform, facilitating data
tokenization on Polygon. Food And Beverages Starbucks: Partnered
for the Starbucks Odessey Web3 initiative, introducing NFT
offerings on the network. 7-Eleven: The American convenience store
chain partnered with the network to introduce Slurpee NFTs, which
are digital collectibles. Coca-Cola: Launched an NFT collection on
International Friendship Day, minted on the network. Fashion And
Beauty Nike, Adidas, And Prada: Supported various Web3-focused
initiatives and digital fashion projects. Casio: Another notable
partnership was with Casio electronics manufacturer to launch a
G-Shock watch-related initiative, contributing to Polygon’s growth.
E-commerce Flipkart: Established the Blockchain eCommerce Centre of
Excellence for integrating blockchain in commerce. Venly &
Shopify: Enabled minting and selling of NFTs for Shopify merchants
on the network. Sports DraftKings: Developed the DraftKings NFT
Marketplace, built on Polygon. SPORTFIVE: Collaborated to create
Web3 experiences in sports, including Metaverse and NFT
initiatives. Partnerships In Technology Nothing: Launched an NFT
loyalty program with tech company Nothing. Stripe: Integrated with
Stripe for cryptocurrency payouts using Polygon’s blockchain.
Deutsche Telekom: The telecommunications giant partnered with the
project to enhance its blockchain infrastructure and capabilities.
Exploring MATIC Crypto: The Building Block of Polygon MATIC crypto,
the native token of the network, is a fundamental component that
fuels and stabilizes the Polygon ecosystem. It plays a multifaceted
role, encapsulating both utility and governance aspects. As project
evolves and expands its reach, the significance of MATIC continues
to grow, underpinning the network’s operational efficacy and user
engagement. What Is MATIC Crypto? MATIC token, originally central
to the Matic Network and now integral to Polygon, serves several
key functions within the ecosystem. It is an ERC-20 token,
compatible with the Ethereum blockchain, which facilitates seamless
integration and interoperability. Key characteristics and uses of
MATIC include: Transaction Fees: MATIC is used to pay for
transaction fees on the network, compensating validators for their
computational resources. Staking: As part of Polygon’s Proof of
Stake (PoS) consensus mechanism, MATIC tokens are staked by
validators and delegators. This staking process secures the network
and ensures its integrity. Governance: Holding MATIC tokens grants
users governance rights within the ecosystem, allowing them to
participate in decision-making processes and vote on proposals
regarding network upgrades and changes. Role Of MATIC MATIC’s role
extends beyond its utility as a cryptocurrency. It is the
cornerstone of the network, with its functions intricately woven
into the network’s architecture: Network Security: Through staking,
MATIC plays a crucial role in maintaining the security and
stability of the network. Validators, who stake MATIC tokens, are
responsible for processing transactions and adding them to the
blockchain. Their commitment is incentivized through rewards paid
in MATIC. User Incentivization: The staking mechanism also serves
to incentivize users to participate in the network. By staking
MATIC, users can earn rewards, contributing to the network’s health
and fostering a robust user community. Scalability And Efficiency:
The use of MATIC for transaction fees underpins Polygon’s ability
to offer low transaction costs and high throughput, crucial for
scaling the Ethereum network effectively. Empowering Decentralized
Applications (dApps): MATIC’s compatibility with Ethereum and its
role in transaction fee management make it an attractive option for
dApp developers seeking an efficient, scalable platform.
Facilitating Governance: As a governance token, MATIC empowers its
holders to shape the future of the network, ensuring a
decentralized and user-centric development approach. Polygon 2.0:
What The Future Will Look Like Polygon 2.0 marks a transformative
phase in the evolution of the network, aiming to scale Ethereum to
the size of the internet using advanced Zero-Knowledge (ZK)
technology. History Of Polygon Polygon, initially launched as Matic
Network in 2017, was developed to address critical blockchain
scaling and usability issues. In May 2020, the Matic Network
debuted its mainnet on Ethereum. During this phase, the network was
predominantly managed by the Matic Foundation, which gradually
began to onboard third-party validators for decentralized control.
The network underwent a significant transformation in February
2021, rebranding to Polygon. This change marked an expansion of its
capabilities, including the integration of ZK-rollup technologies
and various other scalability solutions. Following this, the
project continued its momentum by acquiring technologies like
Hermez and Mir Protocol, and launching initiatives such as Polygon
ID in June 2022 and Polygon Supernets in October 2022. The
introduction of Polygon zkEVM in March 2023 further cemented its
commitment to enhancing scalability and privacy. What Is Polygon
2.0? Polygon 2.0, announced on June 12, 2023, represents a series
of proposed upgrades aimed at unifying all Polygon protocols under
the Zero-Knowledge (ZK) technology umbrella. This ambitious plan
includes upgrading the PoS network to a zkEVM Validium network,
which uniquely stores transaction data off-chain, maintained by the
network’s validators. The initiation of Polygon 2.0’s “Phase 0” on
September 14, 2023, marked the beginning of implementing these
upgrades. This phase was driven by the release of several critical
Polygon Improvement Proposals (PIPs) that laid out the foundational
changes for the network’s transformation. These proposals aimed to
ensure that existing users and developers on the network would not
be immediately affected, ensuring a smooth transition. MATIC
Becomes POL A cornerstone of the Polygon 2.0 upgrade is the
transition from the existing MATIC token to the new POL token. This
transition was officially set in motion with the POL token contract
going live on the Goerli testnet on October 4, 2023. The POL token
is designed to serve as the native token of the upgraded ecosystem,
supporting a variety of roles across the ZK-based L2 chains. The
POL token starts with a supply of 10 billion, allowing for a
one-to-one migration from MATIC, and features an annual emission
rate of 2%. This emission is strategically planned to support
validator staking rewards and contribute to a community treasury,
emphasizing a balanced and sustainable network growth. Market
Insights: What Is The Price Of MATIC? The price of MATIC, Polygon’s
native cryptocurrency, is subject to fluctuations driven by various
factors in the cryptocurrency market. The token’s value is
influenced by general market trends, investor sentiment, network
upgrades, and broader economic conditions. Factors Influencing
MATIC’s Price Several key factors can impact the price of MATIC:
Network Upgrades: Significant developments such as the transition
to Polygon 2.0 and the change from MATIC to POL can have a profound
effect on the token’s price as they reflect the network’s growth
and scalability prospects. Adoption And Partnerships: As Polygon
forms partnerships with major brands and companies, the increased
usage and visibility can positively influence MATIC’s value. Market
Sentiment: Investor perceptions and sentiment, often swayed by news
and social media, can lead to price volatility. Regulatory
Environment: Changes in the regulatory landscape for
cryptocurrencies in key markets can affect the price as they alter
the operational framework for crypto assets like MATIC. Technical
Developments: Innovations in blockchain technology and integrations
with other platforms can affect the perceived value of MATIC.
Economic Indicators: Broader economic factors, such as inflation
rates, interest rates, and the performance of major fiat currencies
like the US dollar (DXY), can also play a role. Polygon Price
Prediction The 1-week chart of MATIC/USD depicts the most crucial
levels in the medium to long term. For the analysis of these price
levels, we use Fibonacci retracement levels and Exponential Moving
Averages (EMAs) to identify potential support and resistance
levels. Fibonacci Retracement Levels: 0.236 Level (Approximately
$0.92): This level, derived from the Fibonacci retracement, is a
potential resistance zone. If the price of MATIC approaches this
level, traders might expect some selling pressure, as it’s a common
retracement level where price reversals can occur. 0.382 Level
(Approximately $1.29): This is another key resistance level. A
break above this could signal strong bullish momentum, possibly
leading to higher price levels. 0.5 Level (Approximately $1.59):
The halfway point of the Fibonacci retracement levels is considered
a psychological level of market sentiment. It may serve as a strong
resistance level where the price could face considerable
challenges. 0.618 Level (Approximately $1.89): Often referred to as
the ‘golden ratio,’ this level is crucial. If the price were to
move past this point, it might indicate a potential trend reversal
from previous declines. 0.786 Level (Approximately $2.32):
Approaching this higher retracement level typically indicates a
substantial recovery from past downtrends, signifying that the
price is nearing the previous highs from which it retraced.
Exponential Moving Averages: 20-Week EMA: MATIC has recently
breached the 20-week EMA at $0.65, which it had been trailing below
since mid-April 2023. This move indicates a potential shift in
short-term sentiment from bearish to bullish. 50-Week EMA: The
price is currently approaching the 50-week EMA at $0.77, a crucial
resistance level that traders often watch. If MATIC can sustain
above this level, it might confirm a stronger bullish trend over
the medium term. 100 and 200-Week EMAs: These longer-term EMAs
represent more substantial levels of support and resistance and
could indicate the overall health of the market. A breach above the
100-week EMA (approximately $0.95) would be a strong bullish
signal, while the 200-week EMA would be indicative of a long-term
bullish reversal. Current Status As of November 7, MATIC is trading
around $0.7087, having recently conquered the 20-week EMA. The next
critical level for MATIC to test is the 50-week EMA. If it
successfully breaks and holds above this level, the next
significant resistance would be at the 0.236 Fibonacci level of
$0.92. These levels, coupled with market sentiment and fundamental
developments within the ecosystem, will be pivotal in determining
MATIC’s price trajectory in the coming weeks and months. FAQ What
Is Polygon? Polygon is a layer two blockchain scaling solution and
framework to the Ethereum blockchain, enabling fast transactions
with reduced costs. What Is Polygon Crypto? “Polygon crypto” refers
to the cryptocurrency ecosystem that is built on the network,
including its native token, MATIC (soon to be POL), and the various
decentralized applications (dApps) it supports. What is MATIC
Crypto? “MATIC crypto” is the native utility token of the Polygon
network, used for transaction fees, staking, and participating in
network governance. What Is Polygon Matic? Polygon (MATIC) refers
to the ecosystem and the suite of solutions provided by the Polygon
network, which was initially known as the Matic Network before
rebranding. What Is The Price Of MATIC? You can check the varying
price of MATIC on any major cryptocurrency exchange or financial
market data provider. What Is MATIC Polygon? MATIC Polygon refers
to the native token (MATIC) and the underlying network (Polygon) on
which it operates. What Is Polygon Blockchain? The Polygon
blockchain is a scalable network that provides a framework for
building and connecting Ethereum-compatible blockchain networks.
What Is The Polygon Network? The Polygon network is the overarching
ecosystem that includes the Polygon blockchain, its native MATIC
token, and all connected services and dApps. What Can You Do With
Polygon MATIC? With Polygon Matic, you can engage in a variety of
blockchain-related activities such as trading, staking, governance,
and interacting with dApps for gaming, finance, and other services.
What Does Polygon MATIC Do? Polygon Matic provides a platform for
creating scalable and interconnected blockchain networks with lower
transaction fees and faster speeds compared to Ethereum. What Is
Going On With Polygon Matic? Polygon MATIC is continuously
evolving, with upgrades like Polygon 2.0 aimed at expanding its
capabilities and improving its infrastructure for better
scalability and interoperability. What Is MATIC Coin Used For?
Users can employ the MATIC coin to pay transaction fees on the
Polygon network, stake for network security, and participate in
governance voting. What Is The MATIC Network? The MATIC network
refers to the initial name of the Polygon network (rebranded in
February 2021). What Is The MATIC Token? The MATIC token is the
native cryptocurrency of the Polygon network, used to facilitate
transactions, secure the network through staking, and enable
community governance through voting. What Is Polygon Chain? The
Polygon chain is a blockchain that operates in parallel to the
Ethereum main chain. It aims to provide faster and cheaper
transactions while still maintaining a high degree of security and
interoperability with Ethereum. What Is Polygon Coin Used For?
Users utilize the Polygon coin, or MATIC, to pay transaction fees
on the network, participate in the proof-of-stake consensus
mechanism, and engage in governance through voting on network
upgrades and proposals. What is Polygon Web3? Polygon Web3 refers
to the third generation of internet services for websites and
applications built on the Polygon blockchain, focusing on
decentralized protocols and providing a distributed environment for
Web3 applications. What Is Polygon Worth? The worth of Polygon, in
the context of market capitalization, is the total value of all the
MATIC tokens in circulation. This value fluctuates based on the
current market price of MATIC. What Is The Current Price Of MATIC?
You can check the current price of MATIC, which varies, in
real-time on various cryptocurrency exchanges or financial data
platforms. What Network Does MATIC Use? What Network Is Polygon On?
MATIC operates on the Polygon network, a layer two scaling solution
built atop the Ethereum blockchain. This network aims to support
scalable blockchain infrastructure and operates in tandem with
Ethereum. What Type Of Coin Is MATIC? MATIC, a type of digital
currency known as a cryptocurrency, serves as a utility token
specifically designed for the Polygon network. Within its
ecosystem, it facilitates transactions, staking, and governance.
Featured image from Moonstats, chart from TradingView.com
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