Latest updates, transaction fees, and everything else about Polygon
When talking about miner and node activity, Ethereum is by far the most popular DeFi development hub. It is considered the most secure smart-contract capable blockchain. Yet, it has many serious problems. It does not play well with other blockchains and suffers from severe congestion issues as a result of massive user demand.
Polygon Matic, a framework for creating Ethereum compatible blockchains, may provide the answer.
Polygon (MATIC): What Is It?
It is a solution to some of Ethereum’s most pressing issues, including exorbitant fees, a terrible user experience, cryptocurrency security, and slow transaction throughput.
The platform’s goal is to establish a multi-chain ecosystem of Ethereum-compatible blockchains. It intends to do this by providing a simple framework that enables developers to construct their own unique Ethereum-compatible blockchain with a single click.
Polygon crypto envisions a world in which diverse blockchains can freely and quickly exchange value and information, removing the technological and ideological barriers that now exist between most blockchains.
The project was originally called Matic Network, but now it’s known as Polygon. While Matic was a straightforward layer-2 scaling solution for Ethereum, Polygon crypto is the foundation for a network of massively scaling, collaborative blockchains that keep their autonomy.
Polygon provides blockchain performance enhancement technologies.
A sidechain was one of the first items sold by Polygon. A sidechain links to a blockchain and improves its performance. The transaction process is significantly faster and with cheaper fees.
Polygon was created to use with the Ethereum blockchain, but, it is not confined to Ethereum. Its sidechains are compatible with all blockchain technologies.
It aims to create a framework for blockchain networks.
Polygon Matic has lofty goals for the future. It aims to serve as a foundation for blockchain networks. Users would be able to establish blockchain networks that interconnect rather than being completely isolated.
This could provide developers with the best of both worlds. They can create their blockchains with all the advantages that come with it; such as scalability and flexibility. They would also enjoy Ethereum’s features, such as its security and tools.
It works with the Ethereum Virtual Machine.
Developers can use the Ethereum Virtual Machine (EVM) to create their own decentralized apps. Ethereum became the most popular platform for decentralized apps in part due to how user-friendly the EVM is.
Polygon is EVM-compatible, thus developers can easily port their apps to it. Aave and SushiSwap are two well-known Ethereum apps that have before been deployed on Polygon crypto.
Other blockchain networks and Ethereum 2.0 are potential hurdles.
When considering investing in a cryptocurrency, it’s critical to understand what the coin does and what issues it may encounter in the future.
It is not the only blockchain network endeavor in the case of Polygon. Polkadot and Avalanche, for example, enable interconnected blockchains. These projects may coexist, or one may find a better solution and abandon the others.
Ethereum has also started releasing updates to Ethereum 2.0, or Eth2. One of the goals of these improvements is to make Ethereum more scalable. If that happens, Polygon’s efforts in that area may become obsolete.
The Polygon token is used to pay fees, administer the network, and stake.
We’ve discussed Polygon’s project ambitions, but what about its cryptocurrency token? It can be used for a variety of purposes, including:
Gas fees: On the Polygon network, these transaction fees are paid with the network’s cryptocurrency.
Governance: Polygon is a governance token, which means that token holders can influence the project’s destiny by submitting and voting on ideas.
Staking is the act of lending a coin. Polygon allows you to stake your tokens and allow the network to use them in exchange for interest. You may presently earn a yearly rate of more than 15% by staking Polygon, while rates frequently fluctuate from day to day.
Polygon has raised transaction fees to prevent spam attacks on the network. The upgrade, however, has not been well received by the community. MATIC is on the verge of a dramatic correction.
The Polygon Network’s Activity Has Declined
Polygon’s on-chain activity is dwindling. Over the previous few days, the network’s average daily transaction count has decreased by roughly half. On Oct. 3, around six million transactions were recorded, however, on Oct. 11, just three million transactions were reported.
The significant drop in network activity appears to be due to the recent increase in petrol prices.
Sandeep Nailwal, Polygon’s co-founder, advocated raising network transaction fees from 1 gwei to 30 gwei to reduce spam transactions on the blockchain. The move drew criticism from the community because of how “decentralized” the network is. However, rather than being a mandatory upgrade, the change was merely a “suggestion.”
While the increased transaction costs are intended to make spam assaults more difficult, they also deter developers from building new applications on top of the Polygon network. Get Protocol developer kasperk stated that his project was considering switching to another network after the cost of minting NFT tickets jumped by a factor of 30.
Polygon’s MATIC token does not appear to have reacted to the increase in gas prices. It is currently consolidating, forming a symmetrical triangle on its daily chart as a result of a succession of lower highs and higher lows.
As MATIC approaches the apex of the triangle, the chances of a significant spike in volatility grow. A daily candlestick close outside of the $1.40 to $1.10 price pocket should indicate the asset’s next move.
After breaking through the overhead barrier, MATIC might advance by more than 84 percent to retest the all-time high of $2.70 set in mid-May. Nonetheless, a surge in selling pressure that pulls the price below the $1.10 support level might result in a sharp drop to $0.62.
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Wrapping up
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