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Blockchain Name: Polygon

Token Name: Polygon Ecosystem Token

Token Symbol: POL

Technical details

Category: Ethereum Scaling Solution

Consensus Mechanism: Proof of Stake

Secret Sauce: AggLayer, ZK-Rollups, and Modular Framework

Mainnet Launch: May 2020

Average Block Time: ~2.3 seconds
Transactions Per Second (TPS): ~30 on Polygon PoS, with ZK-rollups offering higher throughput

Overview of Polygon

Polygon is no longer just a single Ethereum sidechain; it has evolved into a comprehensive suite of interconnected scaling solutions, often referred to as "the Value Layer of the Internet" under its Polygon 2.0 vision. This transformation centers on unifying various chains, including the original Polygon Proof of Stake (PoS) chain, ZK-powered Layer 2s (L2s), and custom-built chains, into a single, seamless network.

The core of this vision is the AggLayer, a groundbreaking protocol that creates shared security and liquidity across all Polygon-based chains. It enables chains to interoperate and share state, making the entire ecosystem appear as a single, unified chain to users. Polygon has made significant investments in zero-knowledge (ZK) rollup technology, with its Polygon zkEVM now a key component of its scaling strategy, offering high throughput and low fees while inheriting Ethereum's security.

Who founded Polygon?

Polygon was founded in 2017 by Indian entrepreneurs Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Mihailo Bjelic later joined as a co-founder. The team's focus was on building a more scalable and user-friendly blockchain ecosystem.

Polygon’s Secret Sauce

Polygon’s "Swiss Army Knife" approach has been amplified with the Polygon 2.0 upgrade. Its secret sauce lies in its modular and interconnected architecture:

  • AggLayer: The Aggregation Layer (AggLayer) is a central innovation, enabling secure and seamless cross-chain messaging and unified liquidity across the entire Polygon ecosystem.
  • Zero-Knowledge Technology: Polygon has poured significant resources into building and acquiring ZK technology, with Polygon zkEVM serving as a leading L2 solution that is fully EVM-compatible and leverages ZK proofs for scalability and security.
  • Polygon CDK (Chain Development Kit): This is a flexible, open-source framework that allows developers to launch their own customized, ZK-powered Ethereum L2 chains. These chains are interoperable and benefit from the AggLayer's shared liquidity.

The original Polygon PoS chain, while still a vital part of the ecosystem, has been integrated into this broader vision. The Peppermint consensus mechanism has been a part of its architecture, but the focus has shifted to the unified and interconnected nature of the Polygon network.

Polygon Use Cases

Polygon is a go-to platform for major brands and applications due to its scalability and low fees. Current and historical use cases include:

  • Metaverse and NFTs: Global brands like Adidas and Prada have collaborated on projects on Polygon. The network is also used by major platforms like OpenSea for minting and selling NFTs.
  • Payments: Polygon has been chosen by companies like Stripe for processing stablecoin payments, demonstrating its utility in real-world financial applications.
  • Social Media: Instagram (Meta) has used Polygon for beta testing NFT sharing and posting.
  • DeFi: Polygon is a popular choice for DeFi protocols due to its efficiency and compatibility with the Ethereum ecosystem.

POL Tokenomics

The transition from MATIC to POL is a core part of the Polygon 2.0 upgrade. The tokenomics have been designed to support a multi-chain ecosystem.

  • Migration: The MATIC to POL migration began in September 2024, with a 1:1 conversion rate. The migration contract is set to remain live for two years, ensuring all token holders have ample time to upgrade.
  • Supply: The total supply of POL is fixed at 10 billion, mirroring MATIC's supply cap.
  • Emission: POL has a new emission policy to support the network's long-term sustainability. It includes a yearly emission rate of 1% for validator rewards and another 1% for the Community Treasury to fund ecosystem development.
  • Functionality: POL is a "hyperproductive" token. Holders can stake POL to become validators, earning rewards for securing multiple Polygon chains simultaneously. This enhances network security and provides a new level of utility beyond the original MATIC token.

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Main Benefits of Tokens in the Polygon Ecosystem

Tokens within the Polygon ecosystem, whether they are the native POL token or other assets like NFTs and ERC-20 tokens, benefit from the network's design as a scaling solution for Ethereum. This offers several key advantages for both developers and users:

For Users

  • Low Transaction Fees: Polygon's architecture, including its Proof of Stake sidechain and ZK-powered solutions, allows it to process transactions at a significantly lower cost compared to the Ethereum mainnet.
  • Fast Transaction Speeds: Polygon's design enables rapid transaction finality, which is crucial for applications that require a high number of quick interactions, such as gaming and decentralized finance (DeFi).
  • Interoperability: Thanks to the Polygon Bridge and the new AggLayer, tokens can be easily moved between the Ethereum mainnet and the various chains in the Polygon ecosystem. This allows users to take advantage of Polygon's low fees and fast speeds while still benefiting from Ethereum's security.
  • Access to a Rich Ecosystem: Holding tokens on Polygon gives you access to a vast and growing ecosystem of thousands of decentralized applications (dApps), from DeFi protocols to NFT marketplaces and Web3 games.

For Developers and the Network

  • Scalability: Polygon offers a modular and highly scalable platform. Developers can build and deploy their dApps on Polygon to handle a large user base and high transaction volumes without being limited by Ethereum's throughput.
  • Ethereum Compatibility: Polygon is an EVM-compatible network, which means developers can easily migrate their existing Ethereum dApps and smart contracts to Polygon with minimal changes. This allows them to tap into Ethereum's robust developer community and tooling.
  • Shared Security: The Polygon 2.0 vision and the POL token provide a shared security layer for the entire ecosystem. This means that custom chains built with the Polygon CDK can benefit from the collective security of a large validator pool, rather than having to establish their own from scratch.
  • Modular Architecture: The Polygon platform is a "Swiss Army Knife" of scaling solutions. Developers can choose the solution that best fits their needs, whether it's the Polygon PoS chain, a ZK-rollup, or a custom-built chain, all of which are designed to be interoperable.

Buying & Storing POL

  • Buying: POL is widely available on major centralized exchanges such as Coinbase and Binance. It's important to check if a specific exchange supports the token and is available in your country.
  • Storing: The safest way to store POL and its tokens is on a hardware wallet like the NGRAVE ZERO, which provides offline protection from cyber threats.

Polygon Facts

  • Theoretical TPS: Polygon has historically claimed a theoretical throughput of up to 65,000 TPS, which is a theoretical maximum. However, on-chain data for the Polygon PoS chain typically shows TPS is much lower. The new ZK-rollups and the AggLayer are designed to increase the network's overall throughput and scalability.
  • Decentralization: The original Polygon PoS chain has a limited number of validators, which has been a point of discussion regarding its level of decentralization. However, the Polygon 2.0 vision aims to decentralize further by allowing a shared validator pool to secure multiple chains.
  • Carbon Neutrality: Polygon has committed to fully offsetting its carbon emissions.
  • Security: In December 2021, a white hat hacker discovered a critical smart contract bug, which was responsibly disclosed. This event led to a $2 million bounty, highlighting the importance of security and the proactive measures taken by the Polygon team.

Reality Check

Polygon’s Peppermint Consensus Mechanism has an upper limit of just 100 validators, questioning whether it can be considered genuinely decentralised.

Despite Polygon’s claim to support a theoretical throughput of 65,000 transactions per second its own data shows that TPS is currently around 30.

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Polygon Narrowly Avoids Billion Dollar Disaster

In December 2021 a White Hat Hacker exposed a Smart Contract bug that put 9bn MATIC tokens at risk. Fortunately for Polygon the Good Samaritan opted to discreetly raise the alarm and accept a $2million bounty - the largest ever DEFI bounty -  rather than taking advantage of a vulnerability that could have potentially collapsed the entire platform.

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