Polygon Coin (Matic) is one of the crypto assets that want to help provide solutions to the Ethereum network density. To note, the development of the Ethereum network makes applications that utilize its smart-contract technology increasingly increasing so that there is often a network density.
This then made the Ethereum transaction fee rise rapidly. The cause is that the Ethereum network itself still uses complicated proof-work consensus algorithms.
This is where Polygon is here to solve the problem. So, what is Polygon (Matic)? You can find a complete explanation of Polygon (Matic).
What is Polygon Coin (Matic Coin)?
Polygon (Matic) Coin is a decentralized protocol that aims to build and connect several blockchain networks that have suitability with Ethereum. This protocol is also often called “Ethereum’s Internet of Blockchain.” That’s because Polygon makes multi-chain ecosystems that can be used together and attached to Ethereum.
Polygon’s creation provides solutions to a series of blockchain issues, such as high gas fees and slow speed. However, Polygon itself still pays attention to security aspects.
The protocol was first released in India, precisely in 2017. Initially, Polygon was referred to as an “automatic network” designed by several Ethereum developers, including Jayanti Kanii, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.
On the other hand, Matic is an ERC-20 token used to pay transaction fees and functions as a governance token in the polygon protocol. In addition, the token MATIC can be used for staking in a polygon network.
The unique fact is that Polygon deliberately spread this MATIC coin slowly. At the beginning of its launch, the coins were distributed in total as much as 3.8% of the available stock.
Then, in public release in April 2019, the stock of the distribution of coins was increased by 19%, while the rest was distributed to Polygon advisors (4%), the team in the Polygon blockchain (16%), in network operations (12% ), polygon companies (21.86%), and polygon ecosystems (23.33%).
So far, of the total, there have been as many as 6.14 billion coins distributed to the public. The Polygon target is that all coins will be distributed to the public in December 2022.
How Polygon works (MATIC Coin)—Polygon Coin
This polygon coin protocol is designed to facilitate a variety of developer needs. Polygon Coin provided a framework to create Decentralized Applications (DAPPS) that prioritizes performance, User Experience (UX), and security.
In it, there are two layers, with the following explanation:
- Layer 1 (L1): Mainnet Ethereum is the main blockchain network.
- Layer 2 (L2): Blockchain that runs on layer 1.
The Layer 2 solution is a way used by the developer with the aim that Ethereum transactions can be processed on this protocol network. Its use is intended so that application users do not suffer losses because of the density of the Ethereum network.
Then this protocol also provides several layer 2 solutions, including the Commit Chains and Side Chains or Blockchains systems that run parallel with Mainnet Ethereum. The difference is that commit chains can internalize the security of Ethereum networks so that developers can utilize polygon scalability by enjoying the protection provided by the Ethereum network.
Through the polygon protocol, developers can also improve their application’s performance so that transactions are faster and gas fees are cheaper than Mainnet Ethereum.
What uses Polygon?
At present, Polygon itself began to be glimpsed by much Decentralized Finance or DeFi and DAPPS as a protocol that can help the development of their products. It is known that more than 80 DAPPS will be built with Polygon until August 2021.
Here are some DAPPS that use Polygon.
This decentralized exchange (DEX) is known to use the polygon protocol. This Quickswap or Quick also allows users to make transactions quickly, with low gas fees.
Quickswap was also designed as a modification alias fork from the Uniswap protocol. In just 30 days, Quickswap quickly became the most active polygon project based on more than 225,000 users, and trading volumes reached more than $ 4.5 billion.
This Quickswap can be used to exchange various types of crypto assets with low transaction costs. Then, you can deposit assets and become liquidity providers on this network.
AaveGotchi is a game that combines Defi and NFT elements. Here, you can buy and collect NFT in the shape of the Gotchi Avatar – the crypto asset will be used as guaranteed.
Thus, each of your Gotchi will become an asset with a value that depends on the number of crypto assets you keep on the Gotchi. This one game also has its token, which is $ghst. You can use the token for various interactions, including for staking.
This is a Defi Yield Farming application or a step to produce flowers with cryptocurrency ownership. Simply put, yield farming is locking/storing crypto assets that you have in a Dapss so that you will get flowers in a certain period.
The concept of yield farming is also in line with deposits in conventional banks. In addition, Kogefarm is one of the DeFi in the polygon network that will provide flowers in the form of crypto assets that you save – the context: storing ETH will get ETH) and Kogecoin token.
Furthermore, the popularity of Kogefarm itself occurs because this application takes a little profit from the user’s yield, precisely at 0-1%.
MATIC as an Investment and Staking Method
It is also essential that you know that Polygon Coin (MATIC) can be used as an investment. This happened because the MATIC token experienced a high increase since the beginning of 2021—in line with the change in the name of the MATIC network to Polygon at the beginning of last year.
Like most crypto assets, this MATIC token, in the short and medium term, also experienced quite a drastic increase and decrease. One of the advantages of Polygon is that this protocol is still in the development stage. It is known that several features of the scalability framework have not yet been implemented.
However, there are already about 350 applications running on this network. Polygon also includes popular decentralized finance projects, such as Aave and SushiSwap, which are starting to add the Polygon network to their services. Furthermore, the great potential of Polygon is the ever-expanding scalability framework of this protocol and the dApps within its network, which continue to grow.
Then, How Do Staking in Polygon?
In general, staking is an investment strategy in crypto assets that can be done to earn passive income. You also need to understand that operations on this protocol depend on validators—to secure the network.
The task of the validator is to run a full node or program that runs transaction and block validation, produces blocks, participates in consensus, and performs checkpoints on the Ethereum mainnet.
To become a validator, you must stake or own and lock the MATIC token with staking management on the Ethereum mainnet. Then, rewards will be given to stakeholders at each checkpoint when this validation is complete.
On the other hand, if you hold a MATIC token, you can also use that token and stake it on a trusted validator. This token is also one of the crypto assets that can be used for staking.
How to Buy Polygon Coin (MATIC)
Of course, you can buy Polygon Coin (MATIC) on Indodax. So, if you want to monitor the latest MATIC (MATIC/IDR) price on Indodax, you can access this link.
How to Withdraw Matic Coin to Rupiah
After you know the meaning, origin, and function of a MATIC coin, one more important thing you should know if you want to become an investor in a MATIC coin is how to cash it in rupiah.
Usually, this process is different for each platform. But in general, the method is as follows:
- Login to the exchange app using your account.
- Look for the “Withdraw” option.
- Select the currency you want to withdraw; in this case, select “Indonesian Rupiah.”
- Enter the amount you want to withdraw. Ensure the nominal is above the minimum balance limit set by the broker.
- Complete information such as personal data and destination account.
- Confirm and wait a few moments until the money is transferred to your account.
That’s a complete review about MATIC coin that you need to know. Do you want to know more about the development of the blockchain world? Let’s learn bitcoin together at Indodax Academy!