The Matic Network is a blockchain platform that originated in India as a second-tier solution that aims to solve the scalability issues the Ethereum blockchain deals with. In February 2021, the platform rebranded to the Polygon network, with some technological upgrades and a broader objective.
The Matic network was co-founded by three Indians- Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. The platform tackles some specific scalability issues Ethereum faces, as mentioned above, and intends to increase transaction speeds along with network scalability. The native token of the platform is the MATIC coin, which the new Polygon platform has also adopted. According to Coinmarketcap, as of June 2021, the Matic coin is among the top 20 crypto tokens globally.
In this post, we give you Matic coin price predictions for 2021, but first, let’s see how the Matic Network/Polygon works, shall we?
How Does the Matic Network Work? And What is Polygon All About?
Ethereum has come to be central to the development of the DeFi (decentralized finance) movement, as it continues to host numerous DeFi and blockchain projects. There are new projects building on the Ethereum blockchain every day; indeed, almost all of the major DeFi platforms today are housed on Ethereum. There’s a problem with this, however. Ethereum has proven to be not scalable enough to facilitate the advanced requirements of developers within the modern blockchain space. Therefore, as Ethereum takes on more blockchain-based platforms, the network grows steadily more congested, with decreasing transaction speeds and higher transaction costs. This makes it difficult for consumers to use the DeFi applications built on Ethereum to their full extent.
To solve this very issue, the Matic Network got launched back in 2017. Matic is a layer-2 solution that came up with the idea of using side chains to increase Ethereum’s scalability. What these side chains do is use their own blocks to share the load of the primary blockchain. Plus, they help the Matic Network facilitate smooth, quick, and cost-effective transactions on the Ethereum platform while also making connecting with non-native chains far easier.
The Matic Network also provided solutions for Ethereum’s over-complex UX design by presenting a simplified user interface that helps users and blockchain developers alike.
Now, the Polygon network is only an upgraded version of the previous Matic network, and it’s adding to both Matic’s goals and capabilities. The Polygon platform calls itself a second-level security-as-a-service (SaaS) protocol that provides developers with frameworks for Ethereum-compatible blockchain networks.
Polygon’s central component is called the Polygon SDK (software development kit) – which is a flexible and modular framework for app developers to produce varied decentralized applications with more efficiency and ease. Using a multi-chain ecosystem, Polygon aims to turn Ethereum into an ‘Internet of Blockchains’ with highly scalable infrastructure.
The Polygon Network Architecture:
There are four layers of the Polygon network that can help blockchains perform a wide range of operations. The layers are:
- The Ethereum Layer: This layer consists of a set of Ethereum smart contracts that can help with staking and resolve disputes between blockchains.
- The Security Layer: This is a conditional layer that supervises the validators responsible for the verification of blocks and the security of the Polygon network.
- The Polygon Networks Layer: This one is a collection of autonomous blockchains that help maintain interoperability.
- The Execution Layer: This final layer takes care of the coordination and execution of the many transactions. The Execution Layer has two sub-layers, which are the execution environment (EVM) and the execution logic (Ethereum smart contracts).
What is the Matic Coin? What Are Its Uses?
The Matic Network’s, and now Polygon’s, native token is called the Matic coin. The Matic coin follows the ERC-20 token standard.
The overall supply of the Matic coin is limited to 10 billion, according to the Polygon team. In 2021, there are already over 5 billion Matic coins in circulation.
The Matic coin has multiple use cases. Firstly, the Matic/Polygon platform’s security is ensured by a Proof-of-Stake (PoS) consensus mechanism where the Matic coin is used for staking or delegating. The Matic coin is of course, used to make and receive payments on Polygon; this way, users, software developers, and ecosystem contributors are allowed to operate within the Polygon ecosystem. On the Matic Network, the Matic coin is used as both the settlement currency and for the transaction fees. Finally, users have the option to trade the Matic coin for other crypto coins while they are operating on the platform.
Matic Coin Price Prediction:
In early January 2021, the Matic coin price was about $0.0018. The Matic coin value rose to about $0.043 by the end of January. In March, the Matic coin hit an all-time high of $0.5089. Keeping the current trends in mind, the Matic coin price predictions suggest it could be trading at $5.80 by the end of 2021. Matic coin forecasts also suggest that the crypto might see a price as high as $6.25 as it enters 2022.
Moreover, Matic coin price predictions for 2022 say at the end of that year, the Matic coin price might just reach $15. Matic coin forecasts further state that in five years if everything goes the way it’s supposed to, the Matic coin price could even be at $50.
And there you have it- a brief look at the Matic Network/Polygon and how the Matic coin might perform in 2021 and beyond. We do hope you found this post useful!
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