Multichain 101 : Understanding Polygon Blockchain Ecosystem
ENEDEX multichain is coming very soon. Multiple blockchain has been prepared for seamless swapping experience across cryptoverse. But before the release of ENEDEX multichain, let’s learn more about the blockchains that potentially will be in ENEDEX multichain. In this iteration let us deep dive on one of the most versatile blockchain in the world and the OG L2, Polygon!
What is Polygon?
The Polygon Network is a crypto project dedicated to making the Ethereum blockchain increasingly user-friendly. The origins of Polygon date back to 2017 when developers Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun began exploring ways to improve Ethereum’s throughput without sacrificing its decentralization. To do this, Polygon’s team focused on building distinct blockchain solutions that interact with Ethereum’s main chain.
After raising millions in initial coin offerings (ICOs), Polygon went live in 2020. The India-based software company Polygon Technology is primarily responsible for building the Polygon Network. Polygon also has a nonprofit organization called the Polygon Foundation that helps organize, raise funds, and coordinate development on the Polygon blockchain.
Since its debut, Polygon has attracted considerable attention from businesses, Web3 developers, and prominent investors like Mark Cuban. As of 2022, the Polygon Network estimates more than 20,000 dApps are using Polygon’s services. Other big companies that have partnered with Polygon include Facebook’s Meta, the Walt Disney Company, and Atari.
There’s a lot of heady tech involved in the Polygon Network, but its key goal can be summed up in two words: Ethereum scalability. It’s important to note that Polygon doesn’t offer just one solution to this issue. Indeed, the Polygon team wants to provide developers and users with multiple tools to build on Ethereum.
Since every scaling solution has pros and cons, Polygon wants to give people as many options as possible to create a dApp that fits their specifications. For instance, some dApp developers may prioritize security over speed, while others may be willing to sacrifice some safety for cheaper fees. Polygon is building multiple Ethereum-based scaling solutions with slightly different features.
At the start, Polygon offered two services:
- Plasma chains
- The Polygon PoS sidechain
Plasma chains vs. Sidechain
Plasma chains and sidechains share some similarities, but they are slightly different technologies. Plasma chains are always connected (or “rooted”) to a primary blockchain like Ethereum. Sometimes called “child chains,” plasma chains derive all of their security from their layer one blockchain (aka the “root chain”). Even though plasma chains can resolve transactions off-chain, they are intertwined with the root chain thanks to bridges and smart contracts.
By contrast, sidechains run parallel to the main chain and have their own consensus and governance mechanisms. For instance, Polygon’s sidechain uses a separate Proof-of-Stake consensus mechanism independent of Ethereum. Instead of bridging transaction data to the main chain, sidechains usually take “snapshots” of transaction history at regular intervals. The sidechain will communicate this data with the main chain using smart contracts to ensure they agree.
The relative freedom sidechains enjoy gives them greater flexibility and speed. However, since sidechains rely heavily on independent governance and consensus mechanisms, they don’t have the robust security of the primary blockchain. Remember that plasma chains are always “rooted” to the main chain, which means they enjoy the same decentralization as the Ethereum network. This gives plasma chains greater security, but they might limit the freedom developers would have on a sidechain.
- Low gas fees: People prefer Polygon over Ethereum because the former costs less per transaction. As a PoS sidechain, Polygon can quickly process “batches” of transactions, resulting in cheap gas fees. On average, people don’t have to pay more than a penny to make a trade on Polygon.
- Fast transaction speed: Related to the last point, Polygon provides faster transactions per second versus the Ethereum main chain. Polygon claims it can handle 7,000 transactions per second, thus eliminating the congestion-related worries on Ethereum.
- High-profile and secure: Although Polygon’s PoS chain may not be as decentralized as Ethereum, it has a strong reputation for security in the crypto industry. As one of the leading layer-two blockchains, Polygon is well-funded and has many of the most talented Web3 developers. It also derives its security from Ethereum, the oldest and most prominent smart contract blockchain.
Polygon has hundred plus projects built on top of the blockchain, here are a brief list of familiar tokens and their contract addresses that has polygon version or uniquely built only in Polygon:
WBTC : 0x8b301809d4dfbb408d48d421c1d30674421214f7
USDT : 0xc2132d05d31c914a87c6611c10748aeb04b58e8f
USDC : 0x2791bca1f2de4661ed88a30c99a7a9449aa84174
DAI : 0x8f3Cf7ad23Cd3CaDbD9735AFf958023239c6A063
LINK : 0x53e0bca35ec356bd5dddfebbd1fc0fd03fabad39
Matic : 0x0000000000000000000000000000000000001010
AVAX : 0x2C89bbc92BD86F8075d1DEcc58C7F4E0107f286b
APE : 0xB7b31a6BC18e48888545CE79e83E06003bE70930
MANA : 0xA1c57f48F0Deb89f569dFbE6E2B7f46D33606fD4
SAND : 0xBbba073C31bF03b8ACf7c28EF0738DeCF3695683
CHZ : 0xf1938Ce12400f9a761084E7A80d37e732a4dA056
AAVE : 0xD6DF932A45C0f255f85145f286eA0b292B21C90B
THETA : 0xB46E0ae620EFd98516f49bb00263317096C114b2
LDO : 0xC3C7d422809852031b44ab29EEC9F1EfF2A58756
MKR : 0x6f7C932e7684666C9fd1d44527765433e01fF61d
GRT : 0x5fe2B58c013d7601147DcdD68C143A77499f5531
FTM : 0xC9c1c1c20B3658F8787CC2FD702267791f224Ce1
SNX : 0x50B728D8D964fd00C2d0AAD81718b71311feF68a
BAT : 0x3Cef98bb43d732E2F285eE605a8158cDE967D219
ENJ : 0x7eC26842F195c852Fa843bB9f6D8B583a274a157
These are 20 among hundred plus projects that is built on Polygon
Polygon has positioned itself as one of the top crypto projects helping bring more people into the Ethereum ecosystem. As Ethereum’s core developers continue to refine the main chain, Polygon allows people to enjoy all Ethereum offers without exorbitant gas fees and slow transaction confirmations.
While there are questions over Polygon’s use case after Ethereum’s main chain upgrades, there’s no question Polygon serves a purpose in today’s crypto ecosystem. Scaling solutions like Polygon will likely continue introducing innovative ways to attract more people to Web3.
Do you have a favorite Polygon based token that you wish to see in ENEDEX multichain?
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