A Primer on Polygon
By: @0xLayerTwo
Originally launched in 2019 as Matic Network and rebranded to Polygon in early 2021, Polygon is a Layer 2 scaling solution, similar to those that we discussed in our Layer 2 Guide.
So why was Polygon not mentioned in the Layer 2 Guide?
The Layer 2 Guide focused on Ethereum Scaling Solutions, while Polygon’s ambition is far greater. Polygon is designed to enable a future where different blockchains no longer operate as independent communities, but instead as intertwined networks that fit into a broader connected multi-chain landscape. Its long-term goal is to enable an open, borderless world in which users can seamlessly interact with decentralized products and services. It aims to create a hub that different blockchains can easily plug into, while simultaneously overcoming some of their individual limitations such as cost, scalability, and security.
So how does Polygon do this? Polygon is a multi-level platform scaling Ethereum thanks to a plethora of sidechains, all of which aims to unclog with the main platform in an effective and cost efficient manner. If you’re unfamiliar, sidechains are unique, blockchains that are bound to the main Ethereum blockchain and are effective in supporting many of the protocols available within the Ethereum ecosystem.
Proof Of Stake Chain: Polygon's main chain is an Ethereum sidechain known as the Polygon Proof of Stake Chain, which adds a proof-of-stake (POS) security layer to blockchains launched on Polygon. Polygon relies on a set of validators, who are their operators, to secure the network. The role of validators is to run a full node, produce blocks, validate and participate in consensus and commit checkpoints on the Ethereum Mainnet. Important to note here is that Polygon stakers do not stake or pay fees in ETH, but rather in MATIC. This is the first departure from what we typically see in Ethereum-Focused Layer 2 solutions.
Plasma Bridge: Polygon makes use of a scaling technology known as a Plasma Bridge. A bridge is basically a set of contracts that help in moving assets from the root chain to the child chain.
There are primarily two bridges to move assets between Ethereum and Polygon, the Plasma bridge and the Proof of Stake Bridge.
The Plasma Bridge provides an increased security guarantee due to the Plasma exit mechanism taking 7 days to complete where the Proof of Stake Bridge is more flexible and features faster withdrawals.
zk-Rollups: An alternative scaling solution used to bundle a large number of transfers off-chain into a single transaction, using zero-knowledge proofs for the final public record on the Ethereum main chain. We dove deep into zk-Rollups in our Layer 2 Guide articles. For more information see here.
Notably, Polygon was one of the first to announce, along with zkSync and Scroll, a zkEVM, or an EVM solution that is compatible with zero knowledge technology. This had been something that was thought of as extremely difficult to nearly impossible a few years ago.
Optimistic Rollups: A solution that runs on top of Ethereum to facilitate near-instant transactions through the use of "fraud proofs". We also explored Optimistic Rollups in our Layer 2 Guide. For more information, see here.
Polygon is compatible with the Ethereum Virtual Machine, which makes it desirable for developers who are currently building on Ethereum or other Solidity based chains. Its goal is to have a solution that works with any given chain or technology and act as a truly interoperable Internet of Blockchains.
To that end, rather than play the game of “What is the best technology to scale Ethereum”, Polygon introduced the notion that there may not be a single best solution that will accommodate all applications. Practically speaking, no scaling solution comes without its pros and cons, including critical tradeoffs between security, sovereignty, transaction fees and transaction speed. Developers can implement the solutions that are best for their particular use case with the flexibility of having the ability to pivot to other solutions offered within the ecosystem.
Recent Developments
In the past few months, Polygon has been in the news non-stop, establishing massive corporate partnerships with brands such as Coca Cola,
Reddit and Robinhood
and just a few other companies you may have heard of
Most recently, Polygon was selected by Disney to be the only blockchain included in the 2022 Disney Accelerator program, a “business development program designed to accelerate the growth of innovative companies from around the world.”
Polygon certainly has momentum on its side as it looks to steward the titans of the Web2 world into the future that is Web3.
Not financial, legal or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. All opinions expressed are solely those of the individual author. This newsletter is not legal advice and does not create an attorney-client relationship. This newsletter does not constitute tax advice. Talk to your independent attorney and/or accountant for any questions specific to you. Always do your own research and use caution when interacting with smart contracts or the blockchain.