Polygon (blockchain)

Polygon (formerly Matic Network) is a blockchain platform which aims to create a multi-chain blockchain system compatible with Ethereum. As with Ethereum, it uses a proof-of-stake consensus mechanism for processing transactions on-chain. Polygon's native token is named MATIC. Matic is an ERC-20 token, allowing for compatibility with other Ethereum cryptocurrencies. It is operated by Polygon Labs.

Polygon is used in decentralized applications (dApps) such as Defi, DAOs, and NFTs.

History

The blockchain company Polygon was originally known as Matic Network. The Matic Network was launched in 2017 by four Mumbai-based software engineers: Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic.[3] In February 2021, the project was rebranded as Polygon Technology. In December 2021, Polygon acquired the Mir blockchain network for 250 million MATIC tokens, with the tokens having a value of around $400 million at the time of the deal. ZK-rollups were intended to offload data from Ethereum to reduce fees and speed-up the transaction process while maintaining security.[4][5]

In December 2021, Polygon disclosed a security vulnerability that resulted in the theft of 801,601 MATIC tokens.[6] In February 2022, Polygon raised $450 million by selling MATIC tokens in a round led by Sequoia Capital India including Tiger Global and Softbank Vision Fund.[7] In November 2022, JPMorgan Chase & Co executed its first live trade on a public blockchain, using Polygon and modified Aave.[8] On December 15, 2022, Donald Trump launched a series of digital art NFTs minted on the Polygon network for sale to the public for $99 USD each.[9][10]

A 2023 partnership between Polygon and the DraftKings, where the team was allowed to keep all earnings from sale of MATIC, came under scrutiny for potential undisclosed aspects of the deal, which Polygon denied.[11] Alethea AI in January 2023 began creating a line of NFTs through Polygon.[12] By February 2023, the blockchain was doing business with large companies such as Starbucks and Mastercard, with Fortune noting it had been relatively unaffected by the 2022 cryptocurrency crash compared to other companies.[13] The Fox Network began working with Polygon on a blockchain project in 2023.[14][15] TIME in 2023 named Polygon Labs one of the Time100 Most Influential Companies of the year.[16] In February 2024 Polygon Labs laid of 60 employees, or around 19% of its staff.

Technology

Polygon uses a modified proof of stake consensus mechanism that enables a consensus to be achieved with every block. Achieving consensus using traditional proof of stake requires processing many blocks to achieve consensus. The proof of stake method requires network participants to stake—agree to not trade or sell—their MATIC tokens, in exchange for the right to validate Polygon network transactions. Successful validators in the Polygon network are rewarded with MATIC tokens.

The Polygon network aims to address problems within the Ethereum platform, namely high transaction fees and slow processing speeds

JAYNTI KANANI

BIOGRAPHY

Jaynti Kanani is the cofounder of Polygon (formerly Matic Network), the first made-in-India cryptocurrency unicorn. Polygon ranks among the top 20 biggest cryptos globally and has become a massive hit in India. Jaynti is an entrepreneur with a focus on product, users, market, design and marketing. An experienced technologist and investor with a knack for investing into early age blockchain companies. His hands-on approach to blockchain has roots in his own experience as a technologist. He has led the (scaling) research in blockchain space, helping blockchain startups build better products and has made effective contributions to Web3, Plasma, and Wallet-Connect.