Polygon: everything you need to know about POL

What is Polygon?

Polygon is a blockchain with the cryptocurrency POL. It's a technology platform designed to connect and scale blockchain networks. Polygon is often referred to as 'Ethereum's internet of blockchains' and started in 2017 under the name Matic Network.

Since Ethereum transitioned to a Proof of Stake mechanism, Polygon's focus on being a scaling solution for Ethereum has become less relevant. Therefore, the platform is increasingly focusing on web3 and NFT applications.

How does Polygon work?

Polygon is a blockchain featuring the POL cryptocurrency. It is a technology platform that facilitates the connection and scaling of blockchain networks. Polygon is often referred to as the 'Ethereum's Internet of Blockchains' and was initiated in 2017 under the name Matic Network.

The Polygon platform is built on the Ethereum blockchain and connects Ethereum-based projects. It can enhance the flexibility, scalability, and sovereignty of a blockchain project while still providing the security and structural benefits of the Ethereum blockchain.

Since Ethereum transitioned to a Proof of Stake mechanism, Polygon's pursuit of a scaling solution for Ethereum has become less relevant. Consequently, the platform is increasingly focusing on web3 and NFT (Non-Fungible Token) applications.

The POL token

POL is an ERC-20 token, making it compatible with other Ethereum-based digital currencies. POL is used to govern and secure the Polygon network and to pay network transaction fees. Polygon also claims to operate in a climate-neutral manner since April 2022.

The Technology Behind POL

Polygon was originally developed to connect Ethereum applications and provide scalability. The network is a Layer 2 blockchain with a custom Proof of Stake consensus mechanism. Users stake their tokens to support the blockchain and earn rewards.

Polygon can:

• Integrate existing blockchains and create custom blockchains.
• Enable communication between Ethereum and other blockchains.
• Help existing blockchains connect to Ethereum.

Many protocols, few costs

Polygon reduces network costs through scaling solutions like side chains. These side chains alleviate the load on the main chain and later synchronize with the network, theoretically allowing Polygon to process up to 65,000 transactions per second.

On Polygon, users can select a protocol that best suits their use case, such as the Zero-knowledge (zk) Proof mechanism. This mechanism verifies transaction validity without revealing additional information, only confirming that the statement is correct.

What makes Polygon unique?

What sets Polygon apart from other Layer 2 solutions is its approach. Polygon offers developers a variety of solutions on a single network, providing more control and customization for choosing the most suitable scaling solution for their application.

Furthermore, Polygon, as a Layer 2 solution, is one of the first platforms to allow crypto staking. With crypto staking, users can earn annual interest for helping validate transactions on the blockchain.

Polygon offers various solutions for everyday users, developers, and businesses. Its primary goal is to create an Internet of Things (IoT) specifically for the Ethereum blockchain. The project aims to scale Ethereum to a billion users without sacrificing decentralization or security.

Benefits of Polygon

Polygon has been popular in the crypto world for years. Why do crypto traders choose POL?

• The coin has the robust Ethereum blockchain as its foundation, and many of its applications are easily integrable.
• The blockchain is highly fast, efficient, and scalable.
• Developers can create their own applications on Polygon, offering the blockchain great flexibility.
• POL's low transaction costs and high transaction speed make it popular among both traders and developers.
• Polygon enjoys an excellent reputation and has been praised by Vitalik Buterin, the creator of Ethereum.

Drawbacks of Polygon

Like all other cryptocurrencies, Polygon is not perfect. What should investors consider with POL?

• The Polygon blockchain was originally designed to handle the congestion of the Ethereum blockchain, which has become unnecessary as Ethereum transitioned to a Proof of Stake mechanism.
• Dependence on the Ethereum ecosystem.
• Increasing competition from similar coins and projects.

Who is the founder of Polygon?

Polygon was founded by a group of developers, including Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun.

Together, they contributed to the creation and development of the Polygon network, which was originally launched under the name Matic Network. Later, they renamed the project 'Polygon' to reflect its broader focus on blockchain scalability and interoperability.

Price forecasts

In 2026 experts expect a minimal price of €1.28 and a minimal price of €4.23 in 2031.

Frequently asked questions