What are MATIC tokens, and why are they on everyone’s lips?

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Throughout November, crypto enthusiasts, influencers and analysts are increasingly talking about MATIC tokens, buidlbee.com reports. The main reason is that while many cryptocurrencies are showing negative dynamics, the MATIC token is growing rapidly. So what is MATIC? Let’s figure it out together.

Let’s find out what MATIC is

MATIС is the cryptocurrency behind the Matic Network project, or, more accurately, the Polygon project. Almost a yer ago, in 2021, Matic Network was renamed to Polygon.

Polygon is a platform for building interconnected blockchain networks.

It intends to deploy a sidechain approach to address some of the key issues of Ethereum, such as its really poor transactions throughput, latency, and lack of community control.

Although Matic Network processed off-chain operations using a technology called Plasma, Polygon is created as a platform devoted to running interoperable blockchains.

Developers may operate preconfigured blockchain networks with properties customized to their requirements using Polygon. An increasing number of modules are available for additional customization, enabling programmers to build sovereign blockchains with more specialized features.

What technological features does Polygon have?

To cope with the scaling issue, Polygon offers an expansion of the Ethereum infrastructure. The platform offers algorithms that boost throughput and lower transfer costs. There are four levels in the Polygon architecture:

  • The Ethereum layer uses smart contracts on the core network to protect the Polygon blockchains. By doing so, you may establish checkpoints, stake coins, settle conflicts, and exchange data with the “mother” blockchain.
  • Accessing validators requires a certain amount of security. You may join nodes, communicate with them, and share benefits thanks to technology.
  • The Polygon level is represented by several independent blockchains. The latter guarantees that transactions are related in a hierarchical fashion and that consensus is reached. For transfers between users, this level is utilized.
  • Transactions are managed and data is stored by the execution layer. At this level, networks that are EVM-compatible and support smart contract execution are put into place.

Blockchains may be made secure and autonomous using Polygon. PoS and a unique set of validators are used in autonomous networks. Secure networks that offer high security and anonymity can leverage the Ethereum technology.

What role does the native MATIC token play in the Polygon ecosystem?

The total supply of MATIC is about 10 billion. The token is needed to pay fees between users. Sidechains use MATIC to implement the PoS mechanism. The token is used to pay rewards to validators as well.

The issuance of MATIC is carried out gradually, according to a schedule calculated for the period until December 2022. Tokens are planned to be used for decentralized management of Polygon. It is also planned to redesign the cryptocurrency (including changing its name), which will be integrated with all ecosystem products.

So why is the currency so popular?

Development. That’s the reason why investors are closely monitoring the Polygon project token. Its team is concentrated on product development, partner acquisition, and integration strategies. Aave, Curve, and SushiSwap are just a few of the huge decentralized applications that have been implemented on Polygon.

Billionaire Mark Cuban invested in Polygon in May 2021, albeit the amount of the transaction was not made public. The platform secured $450 million in February 2022 from Sequoia Capital India and other investors.

It is also very remarkable that at the time when the entire market was in the red zone, MATIС showed a monthly increase. And this is during a bear market!

PricePrediction expects that it would average out at $0.92 in 2022, whereas $1.30 was projected for that year. The price of Polygon was predicted by the website to reach $2.64 in 2025. The MATIC price forecast indicated that it may soar to $15.34 throughout the following ten years.

According to the largely positive forecasts of algorithm-based forecasting websites, this move looks to be boosting the bullish interest in the MATIC coin. However, a variety of factors, from the overall macroeconomic situation to the extent of acceptance of cryptocurrency marketplaces, affect a coin’s destiny.

Never forget that your choice to trade should be influenced by your attitude toward risk, your level of market experience, the diversification of your investment portfolio, and your comfort level with losing money. The markets for cryptocurrencies are extremely risky and volatile. Never put money into an investment that you cannot afford to lose.

 

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