What is Polygon (POL)? Explaining Its Features, Future Potential, and Applications

Many people familiar with the world of cryptocurrencies have heard of 'Ethereum.' However, Polygon (POL) provides innovative solutions to Ethereum's challenges with rising gas fees and processing speed limits due to scalability issues.

Polygon is a leading 'Layer 2 (L2) scaling solution' that maintains high compatibility with Ethereum while achieving drastically lower costs and faster processing. With the expansion of Web3.0 applications including NFTs (Non-Fungible Tokens) and DeFi (Decentralized Finance), the presence of Polygon is increasingly prominent.

This article will clearly explain the mechanics and technical features of Polygon, its key use cases, its role as an investment in POL (formerly MATIC), and its future prospects.

Polygon was launched in 2017 by a team of developers led by Jaynti Kanani in India, originally under the name 'Matic Network'. It was rebranded to its current name in February 2021.

Polygon is designed to be compatible with Ethereum, aiming to accelerate transaction processing and reduce gas fees.

The core of the project is its native token 'POL', used for transaction fee payments on Polygon, network staking, and governance voting.

Originally known as 'MATIC' from the Matic Network, the token was renamed to POL in September 2024.

Polygon has evolved beyond a mere 'sidechain' into a multi-chain ecosystem with multiple scaling structures including a PoS chain, zk-rollups (zkEVM), and a data availability layer.

Polygon is primarily structured around the following two technical frameworks:

Proof of Stake (PoS) Chain

The Polygon PoS chain is a sidechain bridged to Ethereum, generating blocks through its own validator network.
Transactions are completed on the Polygon network, achieving processing speeds of approximately 1-2 seconds, and gas fees less than one yen, thus ensuring high efficiency.

zkEVM (Zero Knowledge Ethereum Virtual Machine)

The Polygon zkEVM is fully compatible with Ethereum's smart contracts while verifying the legitimacy of transactions using zero-knowledge proof technology. This allows for a balance between security and scalability.

Other Features

• Fully Compatible with EVM: Ethereum’s dApps (decentralized applications) can operate almost seamlessly.
• Native Bridge: Smooth asset transfer between Ethereum and Polygon.
• Token Standards: Asset management compliant with ERC-20/ERC-721 standards.

Thanks to these technologies, Polygon is rapidly expanding as a Layer 2 platform that avoids Ethereum's congestion while maintaining decentralization and security.

Polygon is utilized across various domains such as NFTs (Non-Fungible Tokens), DeFi (Decentralized Finance), and Web3.0 games.

NFT Marketplace

Leading NFT platforms, including OpenSea, support the Polygon network. This enables the issuance and trading of NFTs at a minimal gas fee, creating an ecosystem that is accessible even for beginners.

Decentralized social networks like 'Lens Protocol' also operate on Polygon, serving as a foundation for the new content economy in the Web3.0 era.

DeFi Protocols

Major DeFi apps such as 'Quickswap' (the Polygon version of Uniswap), 'Aave', 'Curve', and 'SushiSwap' are deployed on Polygon, allowing for low-cost swaps and yield farming.

Web3.0 Games & Metaverse

Several Polygon-based Web3.0 games like 'The Sandbox' and 'Arc8' are being developed, expanding the 'Play to Earn' model that combines NFTs with game assets.

Advantages

1. Low Gas Fees
   Transaction fees are less than one yen per transaction, significantly cheaper than Ethereum.
2. Fast Transaction Processing
   The average processing time is 1-2 seconds, allowing for stress-free issuance of NFTs (Non-Fungible Tokens) and operations in DeFi (Decentralized Finance).
3. Extensive dApps Compatibility
   Fully compatible with the Ethereum Virtual Machine (EVM), enabling easy deployment of apps designed for Ethereum.
4. Vibrant Ecosystem
   Among the largest in Layer 2 in terms of developer and user numbers, with major corporate entries progressing.

Disadvantages

1. Security Layering
   As a PoS chain, it does not directly depend on the security of the Ethereum core, which can pose risks in terms of technical independence.
2. Centralized Governance
   Some operational decisions are led by the foundation, which has been pointed out as a challenge from the perspective of decentralization.
3. Volatility of POL Prices
   The price fluctuation of POL tokens used for gas payments could affect long-term usage costs.

Polygon is not just a sidechain; it is aiming for an expansive evolution into 'Polygon 2.0'.

Full-scale Operation of Polygon zkEVM

While fully compatible with Ethereum, the introduction of zkEVM, which uses zk-rollups, enhances security and scalability, further boosting Polygon's competitiveness.

The Polygon 2.0 Vision and Governance Reform

The network is being redesigned into multiple 'chains' under the concept of a Polynet ecosystem.
Token rebranding and new staking designs are also under consideration, drawing long-term attention.

Accelerating Corporate Adoption

Major companies like Nike, Reddit, and Starbucks are deploying NFT (Non-Fungible Token) projects using Polygon, enhancing its credibility as a 'practical blockchain'.

To utilize Polygon, the following steps are necessary:

1. Purchase POL on a Cryptocurrency Exchange
   Exchanges like Coincheck and OKJ support this.
2. Set Up a Wallet
   Prepare a Web3.0 wallet such as MetaMask and add the Polygon network.
3. Use a Bridge
   To transfer assets from Ethereum to Polygon, utilize official bridges or LayerSwap.
4. Engage with dApps (Decentralized Applications)
   Try purchasing NFTs (Non-Fungible Tokens), providing liquidity in DeFi (Decentralized Finance), and staking.

Polygon is highly regarded among developers, investors, and corporations as a scaling solution that addresses Ethereum's shortcomings. With its low gas fees, fast processing speeds, and technological innovations such as zkEVM, Polygon is establishing itself not just as a Layer 2 solution, but as a Web3.0 infrastructure.

As it expands across various use cases including NFTs, DeFi, gaming, and payments, Polygon continues to garner attention as a blockchain that is actively used.

If the future of Ethereum depends on scalability, then Polygon is undoubtedly at the forefront of shaping that future.

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