Polygon (blockchain)
 | |
| Denominations | |
|---|---|
| Code | $POL |
| Previous names | Matic Network |
| Development | |
| Original author(s) | Jaynti Kanani, Sandeep Nailwal, Anurag Arjun,[1] Mihailo Bjelic[2] |
| White paper | github |
| Code repository | github |
| Development status | Active |
| Developer(s) | Polygon Labs |
| Source model | Open source |
| Ledger | |
| Ledger start | June 1, 2020 |
| Block time | 2.3 seconds |
| Block explorer | polygonscan.com/ |
| Website | |
| Website | polygon.technology/ |
Polygon (formerly Matic Network) is a blockchain platform which aims to create a multi-chain blockchain system compatible with Ethereum. As with Ethereum, it uses a proof of stake consensus mechanism for processing transactions on-chain. Polygon's native token is POL, an ERC-20 token which allows for compatibility with other Ethereum cryptocurrencies. It is operated by Polygon Labs.
Polygon is a natively Layer-2 network that uses on Ethereum as a base network. In particular, transactions are first validated inside Polygon and then periodically committed in a "checkpoint": a Merkle root of transactions hashes is committed to Ethereum's mainnet, leveraging so-called "Core contracts" deployed on the latter.[3]
Polygon runs various decentralized applications (dApps) such as Defi, DAOs, and NFTs.
History
[edit]The blockchain company Polygon was originally known as Matic Network. The Matic Network was launched in 2017 by four software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.[4] In February 2021, the project was rebranded as Polygon Technology.
In August 2021, Polygon acquired Hermez Network for $250 million.[5] In December 2021, Polygon acquired the Mir blockchain network for 250 million MATIC tokens, with the tokens having a value of around $400 million at the time of the deal. ZK-rollups were intended to offload data from Ethereum to reduce fees and speed up the transaction process while maintaining security.[6][7]
In December 2021, Polygon disclosed a security vulnerability that resulted in the theft of 801,601 MATIC tokens.[8]
In February 2022, Polygon raised $450 million by selling MATIC tokens in a round led by Sequoia Capital India including Tiger Global and Softbank Vision Fund.[9][10]
In November 2022, JPMorgan Chase executed its first live trade on a public blockchain, using Polygon and modified Aave.[11] On December 15, 2022, Donald Trump launched a series of digital art NFTs minted on the Polygon network for sale to the public for $99 USD each.[12][13]
By February 2023, the blockchain was doing business with large companies such as Starbucks and Mastercard, with Fortune noting it had been relatively unaffected by the 2022 cryptocurrency crash compared to other companies.[14] The Fox Network began working with Polygon on a blockchain project in 2023.[15][16] TIME in 2023 named Polygon Labs one of the Time100 Most Influential Companies of the year.[17]
In January 2024, Polygon announced that its community had voted to fund a new "Community Treasury", with about $640 million worth of tokens to fund grants for projects within the Polygon ecosystem.[18]
In February 2024 Polygon Labs laid off 60 employees, or around 19% of its staff.[19][20]
Technology
[edit]Polygon uses a modified proof-of-stake consensus mechanism that enables a consensus to be achieved with every block. Achieving consensus using traditional proof of stake requires processing many blocks to achieve consensus. The proof of stake method requires network participants to stake—agree to not trade or sell—their MATIC tokens, in exchange for the right to validate Polygon network transactions. Successful validators in the Polygon network are rewarded with MATIC tokens.[citation needed]
The Polygon network aims to address problems within the Ethereum platform, namely high transaction fees and slow processing speeds.[citation needed]
Partnerships
[edit]Polygon is the blockchain platform which runs Polymarket, a prediction market.[21][22]
In July 2022, Polygon participated in Disney's 2022 acceleration program to expand into augmented reality, NFTs, and AI.[23][24]
In October 2022, the Indian Police in Firozabad started using Polygon for reporting crimes.[24]
In January 2023, Polygon partnered with Alethea AI on an "AI Collectibles campaign" for trading AI characters as NFTs on Polygon.[25]
In March 2023, Polygon partnered with Immutable Pty Ltd to integrate Polygon's zkEVM technology into Immutable's blockchain.[26]
A 2023 partnership between Polygon and the DraftKings, where the team was allowed to keep all earnings from sale of MATIC, came under scrutiny for potential undisclosed aspects of the deal, which Polygon denied.[27]
References
[edit]- ^ "Matic Whitepaper". github.com. Matic Network. Retrieved 19 August 2022.
- ^ "Polygon Litepaper" (PDF). polygon.technology. Polygon Technology. Archived from the original (PDF) on 2021-02-09. Retrieved 19 August 2022.
- ^ "Polygon Knowledge Layer". Polygon Technology. 2024-09-19. Retrieved 2024-09-19.
- ^ Kaul, Abhinav; Borate, Neil (2021-05-27). "Meet India's first crypto billionaires". Mint. Archived from the original on 2022-12-17. Retrieved 2022-12-17.
- ^ "Polygon acquires Hermez in $250 million deal that includes first-ever token 'merger'". The Block.
- ^ "Crypto Firm Polygon Makes $500 Million Buy for Ethereum Push". Bloomberg. 9 December 2021. Retrieved 8 April 2022..
- ^ "Polygon's Value Grows as Its Apps Grow in Usefulness and Popularity". Investor Place (Press release). 2022-01-17. Retrieved 2022-04-08 – via nasdaq.com.
- ^ Maishera, Hassan (2021-12-30). "Polygon (MATIC) Reveals it was Hacked Earlier this Month". FX Empire – via Yahoo.
- ^ "Polygon raises $450 mln from Sequoia Capital India, SoftBank Vision Fund 2, others". Reuters. 10 February 2022.
- ^ "Sequoia-Led Group Buys Polygon's Crypto Token for $450 million". Bloomberg.
- ^ "JPMorgan Executes Its First DeFi Trade Using Public Blockchain". Bloomberg. 2 November 2022. Retrieved 17 March 2024.
- ^ Martin, Mitchell. "Trump NFTs Offer Adoring 45,000 Views Of Former President". Forbes. Retrieved 2022-12-17.
- ^ "'Losing the plot': Trump mocked after announcing superhero card collection". The Guardian. 2022-12-15. Retrieved 2022-12-17.
- ^ Benson, Jeff (25 February 2023). "Along came Polygon: The blockchain doing serious business with big names including Starbucks and Mastercard". Fortune. Retrieved 17 March 2024.
- ^ Wiggers, Kyle (9 January 2024). "Fox partners with Polygon Labs to tackle deepfake distrust". TechCrunch. Retrieved 17 March 2024.
- ^ Melinek, Jacquelyn (14 March 2024). "Blockchain tech could be the answer to uncovering deepfakes and validating content". TechCrunch. Retrieved 17 March 2024.
- ^ Steinberg, Don (2023). "Time100 Most Influential Companies 2023". TIME. Retrieved 17 March 2024.
- ^ "Polygon unlocks community grants worth $640 million for blockchain builders". VentureBeat.
- ^ "Crypto firm Polygon Labs to cut 60 jobs in fresh round". Reuters.
- ^ Melinek, Jacquelyn (1 February 2024). "Polygon Labs lays off 60 employees, about 19% of its staff, CEO says". TechCrunch. Retrieved 16 March 2024.
- ^ "Meet The 26-Year-Old Building A Billion Dollar Prediction Marketplace". Forbes.
- ^ "Polymarket tilts toward a Donald Trump victory in the election—but how accurate are they?". Fortune.
- ^ "Polygon's MATIC Soars After Disney Deal As Crypto Moves Higher". Forbes. Jul 14, 2022. Retrieved 15 July 2022.
- ^ a b "Firozabad Police to use Polygon blockchain technology to register complaints". India Today. 12 October 2022. Retrieved 2022-11-03.
- ^ Takahashi, Dean (19 January 2023). "Alethea AI debuts generative AI on Polygon blockchain". VentureBeat Gamesbeat. Retrieved 17 March 2024.
- ^ "Immutable and Polygon Labs create a strategic alliance for Web3 gaming". VentureBeat.
- ^ Dale, Brady (4 December 2023). "Polygon blockchain gave DraftKings unique yield: CoinDesk". Axios. Retrieved 17 March 2024.