Ethereum’s scalability issues are perhaps familiar to anyone familiar with cryptocurrencies at least in one way or another. At present, the network is undergoing major changes, which should increase its efficiency, but it is difficult to predict when exactly it will end, as this process is extremely complex and responsible. In order not to wait for the weather at the seaside, the representatives of the crypto community are finding their own ways out of the problematic situation. One of the projects that decided to make life easier for users was Polygon.
Polygon is the so-called Layer 2 solution for the Ethereum network. The main component of Polygon is an adapted version of the Plasma protocol, with the help of which a copy of the Ethereum blockchain was created – a child chain. Periodically, the system takes photos of its condition and transfers the cast to the Ethereum blockchain. This is done so that in the event of conflicting transactions, users can “roll back” to an earlier version of Plasma (“checkpoint”) registered on the Ethereum network.
The polygon has three levels. The first is where smart contracts operate, connecting the Polygon architecture to Ethereum. At the second level, there are validators that transfer information from the PoS network to Ethereum. At the final level, blocks are formed on the basis of transactions taking place in Plasma. This is where developers can host their applications initially launched on Ethereum.
Polygon’s lower fees and faster transactions not only led to explosive network growth, but also contributed to the rising value of the native MATIC token. Since the start of the year, it has increased by 4,900%.
Forecast of the xCritical Analysis Center