What You Need To Know The Polygon Network, previously referred to as MATIC, is a layer-2 sidechain built on the Ethereum Network. Polygon is a commonly used framework in the DeFi world and is frequently used by users of the Ethereum Network in order to avoid reduce gas fees (Gwei). Now, in order to understand […]
The Polygon Network, previously referred to as MATIC, is a layer-2 sidechain built on the Ethereum Network. Polygon is a commonly used framework in the DeFi world and is frequently used by users of the Ethereum Network in order to avoid reduce gas fees (Gwei).
Now, in order to understand Polygon, we have to understand what layer-1 and layer-2 are. A common analogy to understand the differences is this; Bitcoin is a layer-1 and the Lightning Chain is layer-2. Layer-1 (L1) is essentially the blockchain technology and layer-2 (L2) is the technology operating on the blockchain to improve efficiency, speed, scalability, etc.
Polygon is an L2 that is designed to provide much faster and efficient transactions on the Ethereum Network. This results in fees that are literal pennies, as opposed to the >$100 fees one would pay at the time of this writing. So now you see why Polygon rocketed from $.30 to well over $2.00 during the insane crypto bull-run earlier in the year, as Gwei was extremely high and a solution like Polygon was needed. But why is Polygon a long-term hold, especially since ETH 2.0 will supposedly fix these efficiency and Gwei issues (estimated to be completed in 2022)? Let’s dive into it.
We’ve established that Polygon is a coin with legitimate utilization on the Ethereum Network (and they do a fantastic job at it), however, we have also run into the question of, “What will happen when ETH 2.0 is fully released?’ Here is my answer: Polygon is worth ~$9 billion, they have funding from Coinbase Ventures, and some of the best in the business are on their advisory board.
If Coinbase Ventures had any reason to think that Polygon won’t be relevant in the coming years because of ETH 2.0 then they would remove their investment.
Polygon’s advisory board consists of five people, two of which should catch your eye; Ryan Sean Adams and Pete Kim. Ryan Sean Adams, the creator of Mythos Capital and the founder of Bankless, is heavily invested in crypto. In fact, Mythos Capital is described as “Mythos Capital is an investment company that holds cryptoassets and services cryptonetworks.” and Bankless is “The Ultimate Program for Crypto Finance.” Pete Kim is the Head of Engineering and Head of the Coinbase Wallet at Coinbase, a massive position.
I strongly encourage you look into these two, as well as the rest of the team! Needless to say, these guys know crypto and they know it well. Polygon is a legitimate project with legitimate goals and plans to be relevant and viable in the crypto space well beyond the full release of ETH 2.0.
Well, there are a few things- one could simply buy from an exchange, like Voyager, and hold long-term or one could buy Polygon on an exchange (or elsewhere) and then staking it, whether that be on a third-party platform or within the exchange you bought it from, and then holding.
Personally, I believe Polygon is going to adapt and become a competitor to the other top coins in the crypto space. Polygon has an incredible team behind them, tons of funding, and great backing from Coinbase Ventures. There is no reason, in my mind, why Polygon cant make massive waves in the future and this is why I believe that we will see Polygon evolve and expand its footing in the crypto space.
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