After Bitcoin, the most valued and important cryptocurrency is Ethereum (ETH). Like Bitcoin, Ethereum too is a Blockchain but it was made to improve on Bitcoin.
Ethereum was developed to create decentralized applications, smart contracts, and support scripting through its virtual machine (EVM).
Scripting is a stack-based programming language developed by Satoshi Nakamoto, the creator of Bitcoin, it is the language Bitcoin uses to do everything it does. It is a set of programmed instructions that are recorded with every transaction.
Smart contracts are computer programs that execute contracts automatically when predetermined conditions are met. They are a collection of data and codes that reside on the Ethereum Virtual Machines (EVM). Thus making Ether a programmable Blockchain.
Ethereum Virtual Machines (EVM) are computation engines that are used by developers to create decentralized applications on Ethereum. It is the bedrock of the Ethereum Blockchain as it acts as a master computer for running and completing all the tasks on the Blockchain.
Ethereum is helping in creating:
A. An internet where money and payments are built-in.
B. An internet where Apps i.e., decentralized apps don’t steal data from their users.
C. An internet where anyone from anywhere can participate in an open financial system without the interference of centralized agencies.
D. An internet created on an open-access infrastructure, secure, trustless, neutral, and not regulated or controlled by any central authority or any third party.
The following characteristics have opened a door that leads to uncountable technical innovations making the Ethereum Blockchain more useable than Bitcoin as an entire decentralized autonomous organization can reside in the ether ecosystem.
Due to the increased activities and traffic, and the high cost of transmission on the Ethereum platform it has almost become unusable. To provide a solution to this enters Polygon – formerly known as Matic Network.
What is Polygon?
Polygon was created in 2017 in India and was originally named Matic Network but rebranded itself in February as Polygon.
Polygon is a Layer-2 network, acting as an add-on layer to Ethereum. It is a scaling solution that provides tools to facilitate faster transaction processing and reduce the cost and complexities of transactions on the Ethereum Blockchain. It achieves scale by using sidechains for off-chain computation – computations that are done outside the Blockchain and a decentralized network based on Proof-of-stake (PoS) validators.
Sidechains are alternate Blockchains to any parent Blockchain. Sidechains run parallelly to the main Blockchain. Digital assets can be moved between the two chains. They effectively support several Decentralized Finance (DeFi) protocols available in Ethereum.
Polygon provides solutions to scalability issues without compromising on the decentralization of the existing developer ecosystem. The protocol is a side-chain scaling solution for existing ecosystems that improve scalability, reduces transaction cost, and provides a smooth and superior user experience to dApps and other user functionalities.
Polygon wants to improve Ethereum scalability, efficiency, cost-effectiveness, and usefulness thus helping developers in creating dApps and deploying the products to the market quickly. The Polygon protocol builds and connects Ethereum compatible Blockchains.
Features of Polygon
A. Scalability – Secure, faster, and low-cost transactions on Polygon sidechains.
B. ETH Compatibility – Polygon is an L2 solution for Ethereum.
C. Security – Polygon runs on a Proof-of-Stake consensus ensuring decentralization and security.
D. Public Sidechain – Polygon sidechains are open source, permissionless, and have the ability to support multiple Blockchains.
E. User Experience – The protocol has native mobile apps and SDK (Software Development Kit) with WalletConnect ability; developers can abstract from the mainchain i.e., Ethereum to Polygon Chain.
Proof of Stake
It is a type of consensus mechanism for public blockchains which relies on the validator’s economic stake in the network i.e., individuals stake cryptocurrency to validate transactions. It is the main alternative to cryptocurrency mining.
In a Proof-of-Work consensus mechanism, participants who solve cryptographic puzzles to create new blocks and validate transactions are rewarded.
In a Proof-of-Stake consensus mechanism, participants who have a stake i.e., validators take turns getting to vote and propose on the next block. The weight of each validator’s vote is proportional to the size of their deposit – stake.
The most integral part of the Polygon Architecture is the software development kit (SDK) – used to develop Ethereum-compatible decentralized applications as sidechains and integrate them to its main Blockchain.
The following construction scalability methods are used to build sidechains :
A. zk-Rollups- Zero-knowledge rollups (ZK-rollups) combine a large number of Layer 2 transactions that were executed off-chain and bundle them into a single transaction onto Ethereum.
B. Plasma Chains- Plasma Chains have a consensus mechanism that creates blocks and the root of each plasma chain is published to Ethereum.
C. Optimistic Rollups- It is a Layer 2 solution that provides scalability to Ethereum.
MATIC is the native token on the Polygon Protocol. Gas fees while conducting transactions or using Polygon applications are paid in MATIC. Through holding and staking MATIC can be used to secure the Polygon Network owing to its Proof-of-Stake consensus. MATIC is the governance token of the Polygon Protocol hence hodlers of MATIC can participate in the governance voting on Polygon Improvement Proposals (PIPs).
Collaboration between Polygon and EPNS
With the collaboration between Polygon and Ethereum, the vision of decentralized notifications in the Web 3 ecosystem has been pushed further.
The collaboration is going to help create a frictionless communication channel for the Polygon users to interact with the Polygon platform furthering the protocol’s vision to make Ethereum more scalable and provide low-fee transaction costs.
The collaboration will help in understanding the expectations and pushing forward the vision of Multi-chain scalability which is going to be an anchor for the future of the Web 3 ecosystem.
EPNS will update or send alerts in real-time to users about funds or applications being moved from the Polygon L2 to Ethereum L1. MATIC holders will be able to receive updates on new Polygon Improvement Proposals and be constantly updated about the voting process and the closing period followed by the results of the proposals.
With EPNS the Polygon protocol will be better assisted in improving the capabilities of the Ethereum Network which will help in the overall development of Ethereum and the future of Web3 notifications. The collaboration will also help the EPNS protocol deliver scalable, low-cost notifications to users. It will also facilitate in co-development of notification infrastructure to support Polygon’s vision of the “Internet of Blockchains
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