Polygon, formerly known as Matic Network, is a blockchain technology network that implements the decentralized finance (DeFi) available on the Ethreum platform. It is a second-layer solution, i.e. it was born as a need to cover the shortcomings of a previous network. In this case Polygon provides solutions on the Ethereum network.
Advantages and Disadvantages of Polygon (Matic)
The object of the project is focused on reducing the complexity of scalability and instant blockchain transactions not so much on upgrading its network in the short term.
Polygon is an independent project from Ehtereum that seeks in becoming something like the primary network internet (Ethreum). While Polygon currently only supports Ethereum, the network aims to become support for additional base chains. So Polygon would become a decentralized, interoperable Layer 2 blockchain platform.
Polygon tokens are given the MATIC tag, a token modeled under ERC-20 executable on Ethreum. These tokens are used as exchange currency between network users, payment fees between Polygon sidechains, as well as being used as payment currency in Polygon network services.
Advantages of Polygon (Matic):
- It is interoperable. Polygon can adopt other networks, thanks to the chain agnostic tool. Although for now it works with the Ethereum network.
- As it is a second-layer solution it allows high transaction speeds. Currently the network allows for 10,000 transactions per second.
- It has tools for developers, which allows the creation of new block chains independent but interoperable with Polygon.
- It has a collaborative scheme with the Ethereum network, a symbiosis strategy in which Polygon does not compete with Ethereum, making the project robust going forward.
- Much lower costs per transaction, due to its high transaction speed than the network.
- Rewards are not paid with inflation. Validators are not paid with new currency issuance. In addition, it is expected that by the time the coin issuance cap is reached, the network will have enough activity to be able to pay its validators through in-network commissions.
- It is backed by several projects and collaborations. For example, it collaborates with Descentraland, The Graph, Chainlink, Atari and DAO Maker.
Disadvantages of Polygon (Matic):
- Sacrifices decentralization in favor of its speed, this is mainly due to the existence of only ten validator nodes at the BOR chain level or also known as the chain for developers, it is there where they perform tests.
- Its interoperability is centered on a single network. Unlike other similar projects with interoperability strategies (such as Cardano or Polkadot) Polygon focuses on the Eherterum network.
- Centralized validator nodes. Despite using the PoS system the validators are close members of the polygon project developers, a lot of centralization.
- Validator nodes.
- Right now their model represents inflation, as supply due to annual coin issuance does not exceed demand. issuance every 6 months which can be seen in sharp drops in value in the short term
- Future still uncertain. The project is still in its infancy and still has little time to live and it is not known what direction it may take, although everything indicates that it may possibly have a wide degree of acceptance.
- Reduced level of security, when compared to the Ethereum network.