What is MATIC?
MATIC is the native cryptocurrency of Polygon, a layer-2 scaling solution for Ethereum.
How does MATIC work?
MATIC is an ERC-20 token, which means it is built on the Ethereum blockchain. It is used to pay transaction fees on Polygon, which is a sidechain of Ethereum. It secures the network through proof-of-stake consensus. This means that validators are required to stake tokens in order to participate in the consensus process. This helps to ensure the security of the network by making it more expensive for attackers to mount a successful attack.
MATIC allows Polygon to scale Ethereum by offloading some of the traffic from the mainnet to the sidechain. This is done by using a process called Plasma. Plasma allows for the creation of secure and scalable sidechains that are connected to the Ethereum mainnet. When a transaction is made on a Polygon sidechain, it is first verified by the validators on that sidechain. Once the transaction is verified, it is then submitted to the Ethereum mainnet for final confirmation. This process allows for the processing of a much higher volume of transactions than would be possible on the Ethereum mainnet alone.
What are the benefits of using MATIC?
There are several benefits to using it, including:
- Lower transaction fees: It is used to pay transaction fees on Polygon, which are much lower than the fees on Ethereum. This makes it more affordable to use decentralised applications (dApps) on Polygon.
- Faster transactions: Transactions on Polygon are processed much faster than transactions on Ethereum. This makes it a more user-friendly experience for interacting with dApps.
- More scalability: Polygon is a scalable solution for Ethereum, which means it can handle more traffic than Ethereum. This makes it a more viable option for dApps that need to handle a lot of users.
MATIC is a valuable tool for developers who want to build scalable, secure, and efficient applications on Ethereum. It can be used to power a wide variety of applications, including decentralised finance (DeFi), gaming, and enterprise applications.
How is it used?
MATIC is used for a variety of purposes, including:
- Paying transaction fees: used to pay transaction fees on Polygon.
- Securing the network: used to secure the Polygon network through proof-of-stake consensus.
- Staking: can be staked to earn rewards.
- Governance: holders can vote on proposals that affect the Polygon network.
If you want to send MATIC to another user on the Polygon network, you will need to pay a small transaction fee. The amount of the fee will vary depending on the amount you are sending and the network congestion. It can also be used to pay for goods and services on the Polygon network, such as if you were purchasing an NFT.
What apps are on it?
- Aave: an app that lets you lend and borrow money without having to go through a bank.
- SushiSwap: an app that lets you trade cryptocurrencies without having to go through a centralized exchange.
- QuickSwap: another app that lets you trade cryptocurrencies. It’s similar to SushiSwap, but it has lower fees.
- The Sandbox: a game that lets you create, own, and trade digital assets in the form of non-fungible tokens (NFTs).
- Decentraland: another game that’s similar to The Sandbox. It’s more focused on virtual real estate and gaming.
- Loopring: an app that lets you trade cryptocurrencies faster and cheaper than on Ethereum.
- Hermez: another app that lets you trade cryptocurrencies faster and cheaper than on Ethereum. It’s also more secure and interoperable.
- Polygon Miden: an app that’s still under development, but it has the potential to be a major player in the Ethereum scaling space.