In the vast crypto world, there are several terms that people often find confusing. Two of such names are Polygon and Matic. If you have ever had to ask questions like what is polygon crypto or you’re wondering whether the Matic network is the same as Polygon, you’re not alone. In this article, we’ll explain the differences between Polygon and Matic.
What is polygon crypto?
The Polygon network is a type of layer 2 sidechains. It is a faster and lower-cost version of the Ethereum network. Polygon runs parallel to the main Ethereum blockchain. It was originally launched as Matic Network back in 2017. However, it changed its name to Polygon in 2021.
Since it is a secondary scaling solution for the Ethereum blockchain, Polygon does not have its own blockchain network. Rather, it works on top of the Ethereum blockchain. It is possible to bridge some of your crypto to the polygon network. This allows you to interact with various crypto apps on the network.
What is MATIC?
Back when Polygon’s name was Matic, its native cryptocurrency was also called Matic. After the platform’s rebrand in 2021, it retained the name of its cryptocurrency.
Users on the Polygon network use the Matic token to pay gas fees, stake, and for governance purchase on the Polygon network. This polygon token is also available for sale on Coinbase and other cryptocurrency exchanges.
What is MATIC’s current price?
The current price of Matic is $1.3424. This price is about 54.03% less than the all-time high of $2.92. There are about 7,664,713,455.62 MATIC currently available in supply.
How does Polygon work?
Like other layer-2 software (such as the Bitcoin Lightning Network and Loopspring) the polygon network is on top of the Ethereum blockchain. Its main purpose is to solve the problem of expensive gas fees and long transaction time that has become associated with the Ethereum blockchain.
It is still linked to the Ethereum blockchain, but transaction takes only a fraction of the time that it normally would and costs less. Polygon uses a proof-of-stake consensus mechanism. This makes it possible for holders of the Matic Token to earn money on Staking Matic.
How do you use the Polygon network?
The Polygon Network can serve many of the purposes that the Ethereum network for. To use the Polygon network, you have to send some cryptocurrencies to a compatible wallet. An example of a compatible wallet is Coinbase. You can then bridge this coin to Matic to carry out transactions on Polygon.
Furthermore, Polygon is a great way to make use of various decentralized finance protocols. You can stake Matic or use it on various lending and savings protocols. It is also valuable on NFT marketplaces or decentralized exchanges.