It is a world of crazy languages, abbreviations, and acronyms that are enough to confuse the most dedicated linguists. The cryptocurrency exchanges, and their surrounding technology, continue to grow, change, and develop, with new advances coming out each day.
While it may still be in its early stages, the magic that can transpire with just the tool of an internet connection and knowledge of crypto can make the world go ’round. Transactions are coming and going each and every day, so to stay up on the lingo, it is best to do some diligent research and stay informed about the tech advances, players, and rules in the “game” known as cryptocurrency.
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What is Polygon Crypto?
Polygon, formerly known as a corporation called Matic Network, is one type of Ethereum token. It is used to power the Polygon Network.
Overarching Goals of a Polygon Network
The goal of Polygon is to provide solutions for the Ethereum Network. In an Ethereum improvement proposal, the organization offered a sidechain to handle its challenges, especially until a new platform is released. Polygon works with any of the Ethereum-compatible programs, such as MetaMask, MyCrypto, and Remix.
The company itself claims it is “a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.” Its site claims abilities of “aggregating scalable solutions on Ethereum supporting a multi-chain Ethereum ecosystem.”
In short, this all boils down to hoping to bring others together. Polygon aims to make things faster and easier for the users of Ethereum.
This type of program is also often known as a scaling solution. It allows other businesses and industries to utilize the blockchain Ethereum. Polygon has a goal to make its tech one of the scaling solutions, allowing users to easily apply it to new uses.
Polygon, as a whole, aims to create faster and cheaper transactions on the Ethereum network with the use of its “second layer” or Layer 2 tech. Also called a “sidechain,” Polygon is just one of the many blockchains that run alongside another. These sort of “add-on” features can help in processing any transaction, from steps to alleviate Ethereum network congestion, to eliminating most challenges with speed, costs, and services, Polygon aims to assist the Ethereum blockchain while it awaits an upgrade.
Many say that sidechains such as Polygon may become obsolete or minimally less important once the core blockchain finds its own solutions and launches a new system, but that future, as all truly are, remains unseen.
Why You Need MATIC Tokens
When it comes to brass tacks, the Polygon crypto is purchased with Ethereum tokens which combine with the use of a smart contract. Once the contract converts your Ether into MATIC, you can then use that crypto to interact within the Polygon Network.
Later, a transaction can be made to withdraw MATIC back to the Ethereum main chain. Interactions while operating in the Polygon program require MATIC tokens. They are used to pay transaction fees and participate in the proof of stake blockchain.
Polygon and MATIC: What’s the Difference?
Before a flurry of phrases becomes too confusing, we should likely back up and explain Polygon and MATIC. We will take the time machine back to 2019. At that time, an organization called the Matic Network was formed.
In February of 2021, however, Matic Network rebranded its assets and decided to operate under the new name of Polygon. To add to the confusion, Polygon decided to keep its ticker name, MATIC, even after the rebranding.
MATIC tokens are, in fact, simply the native cryptocurrency on the Polygon Network. They are the tokens used inside Polygon in order to interact within the sidechain itself. These are required for things like Polygon transaction fees and are needed in order to do any staking within its programs.
How to Buy Polygon Crypto
First thing’s first: some steps are required if you are just getting your feet wet for the first time. Before you dive into owning MATIC, there are some steps you need to consider first.
A Digital Wallet
As with most crypto, starting all begins with a digital wallet. If you are already familiar with a wallet, which operates more like a keychain despite its namesake, you may already have taken the first steps to own MATIC.
If you haven’t yet, you have a very wide variety of digital wallets in which to place your faith, and ultimately private passcodes, before you select an exchange.
Select Your Platform for Market Exchange
Once you have a digital wallet account, you will want to decide which blockchain you are going to be doing business with you. As you likely know by now, too, there are nearly as many exchange platforms as digital wallets.
In the most direct of actions, many users opt to jump on Ethereum, purchase ETH, and convert it when working in Polygon into MATIC. However, other platforms such as Kraken, CoinBase, Gemini, and Binance also offer access to MATIC tokens.
The Polygon Price
The price of MATIC varies day-to-day, so a quick check of the day’s pricing will help you to better estimate costs. As always, processing transactions (both in-process and cost) also vary by the site you are utilizing to do so.
Where you decide to purchase a MATIC token will determine the steps you need to take. With each option, just be sure that fee visibility is clear to you. Polygon itself added a high level of visibility by burning MATIC tokens as part of its attempt to make fees clear.
Dubbed the Mumbai Testnet, this application of flames is aimed to remind users of fees, increasing its transparency. Polygon itself is based in India, hence its localized naming.
Polygon Price History
While the future, not to mention even the present, can be hard to nail down in a 24/7 changing world of volatile markets, the Polygon crypto circles have seen a market growth not too many were able to project.
In 2021, MATIC rose from $0.018 and a market capitalization of $81 million at the year’s start to a market cap of $20 billion and an all-time high price of $2.92 as of late December 2021. The future is always a risk, but the price history on Polygon shows a pretty burning uptick.
Polygon Limited Supply
At the time of publication, there were nearly 7.5 billion MATIC tokens already estimated to be in circulating supply. This is out of a fixed supply of 10 billion.
One of the appeals of gaining MATIC is that this price will be largely dependent on its limited supply. There will ever only be 10 billion of the tokens out there, in total supply. With a limit on a total supply, investors are often intrigued because there is a virtual “race” to get them mined. With only so many in circulation, people tend to have a strong desire to obtain it.
With Low Supply, Comes High Demand
Having a max supply available means there is high demand. Remember back to basic economic lessons in high school: with small supply comes increased demand.
Polygon works on a Proof of Stake method, meaning that users must stake, in the form of MATIC tokens, collateral of sorts. Posting this stake, or staking as it is known, gives users on the blockchain a chance to be chosen at random to mine on the chain.
How to Buy a Polygon NFT
One of the many uses of Polygon within Ethereum is to purchase NFTs. Known as non-fungible tokens, NFTs are considered any file that is digital. From .mp3s to .jpgs, .gifs to even Tweets, nearly any digital file can be made into an NFT.
With a concept to connect artists to buyers, not to mention create unique revenue streams for the creators, NFTs are gaining in popularity in many ways. These NFTs can be purchased using Polygon.
To find items for purchase, within the Polygon Network, users need to click on “Polygon” under the “Chains” dropdown menu at far, upper left. Once in the system, or if using another platform entirely, the NFTs sold via Polygon are identified by the purple hexagon, Polygon’s logo, on the lower-left corner of each NFT item’s description or title.
Polygon NFT Marketplaces
Some of the top hot spots currently available to purchase Polygon NFTs include names such as:
- Captain Alt Coin
It is, again, the purple hexagon logo that denotes which NFTs (should the platform offer unique brands) is the Polygon brand.
Top Polygon NFT Projects
Currently, the top NFT Projects operating with Polygon include:
Polygon and Network Congestion
It is amazing, in a world that is still in its infancy, what unique glitches and challenges arise along the way. For Polygon, a recent thorn in its side falls under an issue of network congestion.
Users across many platforms, which utilize Polygon’s sidechain technology, are suffering from lags and graphic distortion. Why? In a word: Sunflowers.
How Sunflowers Congested the Internet
Polygon is frequently experiencing congestion as it kicks off 2022, and it is all because of a decentralized application: Sunflower Farmers.
This play-to-earn game, which is placing high demands on the network itself, is causing users to take up bandwidth, limiting the L2’s ability to make things, as intended, faster and smoother. In the game of Sunflower Farmers, a fierce competition is the name of the game, and players are incentivized to farm as many tokens as they can.
Polygon gas fees jumped from about 30 Gwei to now more than 500 Gwei because of this venture, not only making things slower but also costing users more funds. Ironically, the two main goals of Polygon are to make things faster and to cut costs.
It had gained early fame for doing so, and many users look to Polygon for its “next-to-nothing” transaction fees.