The well-liked crypto marketplace commentary host not long ago explained why he is bullish on $MATIC, the fuel token of the Polygon network.
What is a polygon?
Polygon is “a decentralized Ethereum scaling platform that allows developers to build user-friendly, scalable dApps with low transaction fees without ever sacrificing security.” The Polygon clear paper describes Polygon as “a protocol and framework for building interconnection of blockchain networks that support Ethereum.”
On May 18, 2021, Anthony Sassano, Ethereum educator, investor, and independent advisor, took to Twitter to clear up some of the confusion surrounding Polygon (e.g., some men and women phone Polygon a Ethereum sidechain, whilst other individuals phone it an L2 blockchain. Here are some highlights about that Twitter feed:
- “There are Matic Plasma chains and Polygon PoS chains. Most of the activity takes place on the PoS chain.“
- “The PoS chain is known to everyone as a “side chain” for Ethereum because it has its own permissionless validator (more than 100 lines of that MATIC), which means it does not use the security of Ethereum (aka. Ethereum’s PoW).“
- “The PoS chain goes beyond a standard side chain and actually relies on and is committed to Ethereum (what some might call the “validation chain”). It is based on Ethereum because the entire validation/implementation logic of the PoS chain lives as a smart contract on Ethereum.“
- “This means that if the Ethereum network goes offline, the Polygon PoS chain will also go offline. Second, the PoS chain commits/verifies over time with Ethereum.“
- “This has 2 benefits: it provides Ethereum-based finality to the PoS chain and can help the chain recover in the event of a catastrophic event. It also means that Polygon pays Ethereum to use its block space (in ETH) and pays for secure contracts and checkpoints.“
Additionally, Sassano took the chance to speak about two bridges that exist among Ethereum and Polygon:
- “There are 2 bridges – Plasma Bridge secured by Ethereum and PoS Bridge secured/operated by PoS Chain Validator.“
- “Of course, for a PoS bridge, theoretically 2/3 of the validators could collude and try to steal coins from the bridge, but there is $3.4 billion at stake, so very risky . If this attack happens, checkpoints and social coordination may be the only way.“
He also commented on various signings for Polygons contracts:
- “Multi-sigs exist to enable contracts to be up to date in the occasion of a bug/exploit, which is a practice made use of by a lot of recent tasks (primarily these in DeFi).“
- “However, Polygon’s multi-sign is 5 out of 8, which is certainly not ideal and not decentralized and the plan is to improve this significantly in the near future.“
Ultimately, he mentioned, Polygon is “committed to building and deploying roll-up-like L2 solutions in the future,” and which is what he is most energized about.
Why Coin Bureau is bullish on $MATIC
According to a single report According to the Daily Hodl published earlier nowadays, the Coin Bureau host spoke about Polygon in a YouTube video posted on August four:
“The MATIC token has been hit tough by the crypto bear marketplace and is down about 50% given that I final described the venture in March, despite the fact that it is starting up to demonstrate indications of recovery. Outside of the crypto bear marketplace, the MATIC token has been held back by offering stress, as indicated by the huge maximize in its circulating provide above the previous handful of months. Since March, MATIC’s provide has enhanced by about 340 million...
“MATIC is probably to proceed its quick-phrase rally irrespective of these fundamentals, and that is due to Ethereum’s approaching transition to evidence-of-stake, placing tokens like MATIC on a mission. to the moon. Based on accepted amateur technical examination, MATIC could rally as higher as $one.50 ahead of the Ethereum merger in mid-September. This is in line with ETH’s very own rate action predicting a subsequent rally. two instances a lot more.
“It also makes sense as MATIC will almost certainly benefit from the merger as it will make its scaling solutions more environmentally friendly by scaling. This will increase Polygon’s already high appeal to institutional investors… Additionally, Polygon’s scaling solutions will still be needed after the merge, as the merger will not affect Ethereum’s transaction speed or fees, if any.“
Currently (i.e. at 15:15 UTC on Aug seven), $MATIC is trading all around $.915, down .59%.
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