Last week, we discussed the Solana blockchain, which aims to be a direct competitor of Ethereum and Binance Coin and therefore focused on decentralized applications.
This week, we will continue on the path of Dapps with a review of the blockchain Polygon, formerly Matic Network.
During the advent of decentralized finance in 2017, the Ethereum blockchain started to show its limits in terms of scalability. This leads to high transaction fees and overloads the ETH network. During the bullrun of 2021, we will see an even bigger explosion of these fees.
The idea of Matic Network goes back to 2017, when 3 developers started looking for a scalability solution for the Ethereum blockchain. Matic's solution is based on the same principle as the lightning network, the Plasma solution. The latter is based on a duplication of the parent blockchain, in this case ETH. Matic Network was born.
In 2021, Matic Network becomes Polygon and operates a change and is no longer only a single blockchain Ethereum scalability solution, but becomes an aggregator of scalability solutions.
Use and operation
The Polygon blockchain is used as an aggregator of Ethereum scalability solutions but also for the use of decentralized applications. According to the dappradar.com website, there are more than 1000 Dapps on the Polygon blockchain.
Polygon's consensus method differs a bit from what we have discussed so far in our article suite. Indeed, to allow the Polygon network to be fast, the team has designed a two-stage solution. The first one, named Bor, is in charge of producing the blocks on the different Polygon blockchains. The second, Heimdall, is to secure the global network with the help of the parent blockchain. These two stages are proof-of-stake (PoS) blockchains.
Bor is a copied sidechain from Ethereum and this layer is responsible for aggregating transactions into fast blocks. Heimdall is actually a set of validators aggregating multiple blocks from the Bor chain into a single Merkle root which is then sent to the Ethereum blockchain to finalize transactions.
Within Polygon itself, there are already 7 scalability solutions developed within 1 year. Two of them are already usable.
Polygon PoS, the initial blockchain of Matic Network. It is still the most used blockchain in the Polygon ecosystem thanks to its age and its simplicity of use.
Polygon Hermez, the first scalability solution implementing Zero Knowledge Proofs on Polygon.
From a technical point of view
From a technical point of view, MATIC is located between a support zone located at $1.04 and a resistance zone located at $1.18.
The daily technical situation is still neutral for the time being with a buy signal given on the WaveTrend, the MACD still not having crossed upwards. On a 4-hour time frame, the indicators are positive.
MATIC also seems close to breaking its moving average upwards, if this happens, we could see a rise to $1.30.
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Next week, we will discuss another very interesting project which is none other than ChainLink. See you next week!