MATIC is an Ethereum token that powers the Polygon Network, a scaling solution for Ethereum. Polygon aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains, which are blockchains that run alongside the Ethereum main chain. Users can deposit Ethereum tokens to a Polygon smart contract, interact with them within Polygon, and then latewithdraw them back to the Ethereum main chain. The MATIC token is used to pay transaction fees and participate in proof-of-stake consensus.
Features of Matic
- High liquidity
- Fast transactions
- Offers staking rewards
Advantages of MATIC
- Polygon offers a fully customizable tech stack, providing a user experience similar to Ethereum for developers.
- Extremely fast transactions per second
- Polygon Scales Relatively Faster, Interoperable, and Has 100s of Partnerships
- Great for decentralized finance apps
- Polygons’ PoS chain, Plasma chains, optional shared security and planned ZK and Optimistic roll-ups all serve to separate it from its closest competitors.
Disadvantages of MATIC
- Market Cap/ Total Value Locked Ratio is high (asset may be overvalued when this occurs)
- Competition from other scaling solutions will arise
Polygon delivers a formidable custom-made suite of tools and services to the entire cryptocurrency space. It has ambitions of alleviating the problems of the Ethereum network whilst also promoting true and routine blockchain interoperability.
The Polygon network’s late debut in 2021 has not retarded its growth. Instead, it has provided an advantage to the network as it grows on the mistakes of earlier platforms, in its goal to deliver the first Internet of Blockchains to the world of crypto.