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What about Polygon in 2022? – An update on cryptocurrency

 


What is polygon?

Polygon, formerly also called MATIC, is a scaling solution for the Ethereum blockchain. The network offers faster and cheaper transactions than the actual Ethereum blockchain. The network was released on Ethereum in 2017. Polygon bills itself as “Ethereum’s internet of blockchains.” 

The Polygon network uses so-called sidechains (Layer 2), which ensure that transactions can be processed faster and cheaper. These sidechains run parallel to the Ethereum main chain. In 2021, MATIC was renamed to Polygon. With this, Polygon wanted to position itself not only as a scaling solution, but also as a fully-fledged multi-chain ecosystem.


How has the Polygon (MATIC) price moved over the past few months?

In the second half of 2021, the Polygon price experienced a continuous increase. However, unlike other cryptocurrencies, the price of Polygon did not reach its final all-time high of $2.87 in November, but only in December.

In 2022, Polygon's price fell sharply again. In January and early May in particular, we saw massive falls in prices. This caused Polygon to lose more than 80% of its value since its all-time high, even falling below $0.35 in June. Since this low value, the price has been able to recover somewhat.

For many years, Ethereum used Proof-of-Work as a consensus mechanism to validate transactions. Ethereum uses the same method as Bitcoin. While this slower and more inefficient method works for Bitcoin (Bitcoin thrives on its deflationary structure and appreciation as an asset over time), it poses massive problems for Ethereum.


Over the years, the so-called gas fees for transactions in the Ethereum network have increased. Furthermore, the transaction speeds in Ethereum are very low compared to modern blockchains. That is why there is an urgent need for Ethereum to change its consensus mechanism. 


What is Ethereum 2.0?

Ethereum 2.0 is an update intended to overhaul and modernize the Ethereum blockchain. The focus is on the complete conversion of the consensus mechanism from proof-of-work to proof-of-stake . This should make the blockchain cheaper, faster, more efficient and more scalable. 

In recent months and years, several steps have been taken to make this transition possible. The final launch of Ethereum 2.0 is now scheduled for the third quarter of 2022 . There have already been several delays because the new beacon chain is being intensively tested for bugs before it is launched. You can find out more about this in this article .


Will Ethereum 2.0 Make Polygon Obsolete in 2022?

The transition to Ethereum 2.0 will make the Ethereum main chain much faster, more efficient and more scalable. These features were Polygon's advantages, making the network a good complement to Ethereum. But will the Polygon blockchain become unnecessary now that Ethereum as the main chain becomes more scalable and efficient?


However, this should not be the case. Meanwhile, Polygon has built a multi-chain ecosystem and is more than just a “help for Ethereum”. Polygon is built on the Ethereum blockchain and offers a tool kit for many developers to develop decentralized applications. Polygon is also often considered the link between new applications and the actual Ethereum blockchain.

Furthermore, we must note that the Polygon Blockchain can hardly be beaten in the areas of speed and scalability. The network can carry out up to 65,000 transactions per second. The time to validate each block is also extremely fast. As a separate network, Polygon offers many advantages that other blockchains cannot offer. 


What developments is Polygon going through in 2022?

An important project at Polygon at the moment is the implementation of the so-called "Green Manifesto". The aim of this campaign is for the network to have an overall negative carbon footprint. Polygon has used the environmentally friendly Proof-of-Stake consensus mechanism since inception. 

Now Polygon wants to ensure that all CO₂ emissions of the network are recorded and can be offset in further steps. Polygon worked with KlimaDAO, a decentralized collective that operates a decentralized emissions market. In this way, CO₂ emissions from a blockchain network can be offset.


Can Polygon (MATIC) also exist in the next few months of 2022?

Polygon has been in the top 20 cryptocurrencies by market cap for a long time. This shouldn't change anytime soon in the coming months either. At the moment there is little to suggest that Polygon could lose much of its popularity and use cases when Ethereum 2.0 is launched.

Polygon Matic

Polygon continues to offer an excellent network, which in 2022 represents more than just a pure scaling solution for the Ethereum blockchain. Polygon became a multi-chain network and continues to be very attractive to dApp developers. It offers high scalability and fast transactions. 

Is it worth investing in Polygon's MATIC token?

An investment in Polygon (MATIC) makes sense in 2022. Due to the bear market, prices have just fallen sharply. It makes perfect sense to now buy new tokens cheaply and to focus on long-term gains in value.

It is very likely that Polygon (MATIC) price should rally again in the next bull market. But investors will have to wait a while longer for the bull market to appear. Therefore, the investment in Polygon should be more long-term.

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