Don’t call it Matic Network anymore, but Polygon! Matic Network is a second layer scaling solution on the Ethereum network . Faster and above all less expensive, Matic comes to the rescue of Ethereum by making decentralized finance finally affordable.
Matic Network therefore changed its name at the beginning of 2021 and became Polygon.
The network being congested it is better to change the RPC parameters in Metamask
What is Matic Network?
Matic Network is a sidechain-based scaling solution for public blockchains. It is based on an adapted implementation of the Plasma framework. Matic offers scalability while ensuring a superior user experience in a secure and decentralized manner. Matic intends to support other blockchains in the future, which will allow it to provide interoperability features while offering scalability of existing public blockchains.
The role of the Proof-of-Stake
Proof-of-Stake is a system in which the blockchain network aims to reach a distributed consensus. Anyone with enough tokens can lock in their cryptocurrencies and be rewarded by the network to ensure optimal integrity and decentralization.
A speed of execution
The Proof-of-Stake layer in the Matic network architecture serves the following 2 purposes:
– Acts as an incentive layer to maintain the speed of the Plasama chain, mainly mitigating the problem of data unavailability.
– Implement Proof-of-Stake security guarantees for state transitions not covered by Plasma.
A sidechain is an alternative blockchain to a parent chain. Plasma is a child chain framework – it’s a scaling solution for Ethereum (or any blockchain for that matter).
The concept of sidechain is essentially running another blockchain alongside another “main” blockchain. These two blockchains can then exchange and allow assets to move between the two chains. Like sidechains, Plasma chains have a consensus block creation mechanism. However, unlike sidechains, the “root” of each plasma chain block is published in Ethereum. The “roots” of blocks are essentially small pieces of information that users can use to prove things about the content of those blocks.
Matic will allocate 12% of its total 10 billion token offering to fund staking rewards. These 1.2 billion tokens will serve as a staking reward for the first five years. This is to ensure that the network is sufficiently primed until transaction costs gain ground. These rewards are primarily intended to revive the network, while the long-term protocol should be able to sustain itself on the basis of transaction fees.
Staking on Matic Network
Matic works in Proof-of-stake the network uses validators to ensure that the integrity of the transactions. It is therefore possible to delegate your MATIC tokens for staking.
Examples of staking platforms:
There is no minimum amount for the delegation of MATIC tokens, you can very well start with 1 token. However, you will have to respect a period of 9 days during which your tokens will be blocked. You will not be able to remove them, whether the price falls or rises sharply!
Staking is a relatively long term investment, so the locking period should not be a problem. You can always continue to add MATIC tokens to your delegation address, and even store the new tokens you have generated to maximize your return.
A delegator is a token holder who cannot or will not execute a validation node itself. He can delegate his tokens to a validator and get a part of their staking revenues in exchange. Because they share revenue with theirvalidators,delegators also share risk. If a validator misbehaves, each of his delegates will have his tokens partially reduced in proportion to his delegated participation. Delegates play a key role in the system, as they are responsible for the selection of validators.y.
To make staking on the Matic network you will need MATIC tokens. It is possible to obtain them in 2 ways:
- Buy tokens on an exchange like Binance and transfer them to your Matic wallet
- Swap tokens on a DEX that works on Matic like Quickswap
How to delegate your MATIC tokens for staking?
Staking is an extremely common and easy practice. You don’t need to manage masternode, no computer knowledge is required and you don’t have to pay for any virtual servers.
- You will need ETH (for gas fees) and MATIC
- Choose the validator to whom you want to delegate your tokens (they always belong to you, you can withdraw them whenever you want after the 9 days lock period)
- Enter the amount of tokens you want to delegate and validate the transaction.
- Staking rewards will fall approximately every 40 minutes
How to add the Matic network to your Metamask wallet?
- Open Metamask
- In the “Main Network” tab, click on “Custom RPC“.
- You will need to enter the network information (image on the right) and click on “Save“.
The network being congested lately we advise you to change the network logs by these ones:
You are now ready to send tokens to your address. From now on you will have to bridge the Ethereum network and the Matic network.
- Go to: https: //wallet.matic.network/
- Link your Metamask wallet to your Matic wallet
- Choose “Matic Wallet“, then click on “Deposit“, to send ERC-20 tokens to the Matic network.
- We advise you to send MATICs first as they will be used to pay for the gas charges on this network (you will need ETH to send your tokens on the Matic network) OR stablecoins such as USDT and USDC, you will be rewarded with 0.1 MATIC (which is more than enough to make several dozen transactions on the network!)
You can also send ERC-20 tokens from Matic to Ethereum in the same way by choosing Ethereum Wallet first then Deposit .
Decentralized finance for all pockets: Quickswap
Just like Ethereum, decentralized finance solutions are starting to emerge. This is particularly the case with certain DEXs such as Quickswap, which makes it possible to carry out more or less the same operations asUniswap, but this time on the Matic network. Quickswap uses the same source code as Uniswap.
What are the features of a DEX on Matic like Quickswap?
- Token swap (exchange of A tokens for B tokens)
- Feed a Liquidity Pool (adding A and B tokens in order to receive a percentage of the trade of these 2 tokens)
- Liquidity mining (adding A and B tokens to earn A or B or C tokens)
What are the benefits?
- Low transaction costs (several dollars on Ethereum, less than 0.001 cents on Matic)
- Instant transactions.
Quickswap now manages almost 1 billion in liquidity on its protocol. Hypergrowth due to the development of Ethereum L2s and the gradual abandonment of the Binance Smart Chain.
Find out how to use Quickswap on Matic Network
Conclusion and opinion on Matic Network
Matic should allow to decongest a small part of the Ethereum network by allowing users, traders and gamers to benefit from the same conditions of use by operating a bridge between the two infrastructures. With an extremely advantageous Proof-of-Stake system and a multiplication of decentralized applications Matic should enjoy a good growth in the next months.
As for the arrival of Ethereum 2.0, it is not yet known what impact it will have on layer 2 solutions like Matic.
Frequently asked questions
- What is Polygon?Polygon is an Ethereum or Layer 2 overlay. It works in Proof of Stake (on the Ethereum blockchain) and allows access to many tools of decentralized finance cheaper and faster.
- What is the difference between Matic Network and Polygon?There is no such thing. Polygon is simply the new name of Polygon.
- What is the name of the Polygon token?Matic Network changes its name to Polygon, but the name of its token remains unchanged and keeps the ticker MATIC.