Polygon (MATIC) is a Layer 2 scaling solution built on top of Ethereum. Originally launched as Matic Network in 2017 and rebranded to Polygon in 2021, the project was designed to address Ethereum's two biggest limitations: slow transaction speeds and high gas fees.

Why Was Polygon Created?

As Ethereum grew in popularity, its network became congested. Sending a simple transaction could cost $50 or more during peak periods. Polygon solves this by processing transactions on its own sidechain and submitting cryptographic proofs back to Ethereum. The result: transactions complete in seconds and cost fractions of a cent.

How Does Polygon Work?

Polygon operates using a Proof-of-Stake (PoS) consensus mechanism. Validators stake MATIC tokens to participate in block production and earn rewards. The network can handle up to 65,000 transactions per second — compared to Ethereum's roughly 15 TPS.

What Is the MATIC Token?

MATIC is the native cryptocurrency of the Polygon network. It serves three primary functions: paying for transaction fees, staking to help secure the blockchain, and participating in governance votes. MATIC has a fixed maximum supply of 10 billion tokens.