Polygon (Formerly MATIC) : Success Story of an Indian Blockchain Startup
The crypto market is like a vast river where everyone is looking to sail their boats in the world forum. While countries like Japan and the US have taken a considerable lead, India is yet to thrive in the market. However, the introduction of Polygon (formerly known as Matic Network) by the three young minds- Sandeep Nailwal, Jayanti Kanani and Anurag Arjun- has given the country an edge in the competitive market.
What is Polygon?
Polygon is a complete multi-chained system. It is a framework and a protocol that can solve the scalability issues on the current Ethereum network by connecting Ethereum-compatible blockchain networks. It is a layer two solution, which means it works on top of Ethereum’s primary blockchain. Furthermore, Polygon is an intelligent and cost-effective solution that uses side chains to unclog the central platform.
Polygon seeks to address some of Ethereum’s significant limitations by using a novel sidechain solution. This includes Ethereum’s throughput, poor user experience, i.e. high speed and delayed transactions and lack of community governance.
Polygon, before it was dubbed as the “internet of blockchains”, and it broke into the top 15 cryptocurrencies, it was better known as MATIC Network.
The MATIC network was founded in October 2017. This Indian-founded cryptocurrency was co-founded by three individuals who identified a scalability issue with Ethereum and looked to solve the problem.
The original idea first came to Jayanti Kanani, the now CEO of Polygon. Kanani was then working at Housing.com as a data scientist. He was the first who noticed a scalability issue and large amounts of congestion on the Ethereum network. He was then eager to solve the problem, so he reached out to his acquaintances, Sandeep Nailwal and Anurag Arjun.
The three then went on to found MATIC with the operations based in Mumbai. MATIC provided scaling solutions for Ethereum, primarily through utilizing sidechains. Furthermore, it ensured the security of assets by using the Plasma framework and decentralized Proof-of-Stake validators. At that time, the Plasma framework was a pretty popular trend among other projects; however, MATIC stood out from the pack, ahead of the competition to be one of the most well-known scaling solutions in crypto.
The startup was first bootstrapped with funds from friends and family. Later it went on to raise $5 million from Binance in an initial exchange offering. After that, the company sold a portion of the MATIC tokens they held to Binance.
The journey from MATIC to Polygon
On February 9 2021, The MATIC network underwent a rebranding and shift in vision as it saw a vast potential to expand. The idea of Polygon was to interconnect and bridge the gap between blockchains and networks while based on the Ethereum ecosystem.
Polygon is designed in a way that it can be an entire platform for launching interoperable blockchains. Unlike its predecessor Matic Network, it is not a simple scaling solution. Instead, it can connect multiple channels and impact globalization and the potential revolution of blockchain technology.
At that time, Polygon upgraded the entire system. It brought in promising metaverse projects as well as integrated Matic Plasma Chain. This, in turn, enabled it to provide a layer one blockchain network with integrated scaling solutions for NFT, Defi etc.
Popularity of Polygon
The Indian origin cryptocurrency, Polygon has now swiftly risen in terms of popularity. It has partnered in several government-based blockchain projects for scaling COVID-19 related data. The scaling solutions have been adopted by more than 400 apps, 76 million transactions and approximately 790,000 unique users. Its token $MATIC is listed across most big crypto exchanges, including CoinSwitch Kuber.
Polygon’s immeasurable growth is somehow partly because of the surge in popularity of the Ethereum network as well as the adoption of its blockchain. Polygon’s side chain architecture generated a much-anticipated hype in price and public perception due to its facilitation of faster and cheaper transactions.
Also, Polygon’s surprising yet convenient low fees are gaining traction amid the increased congestion on the Ethereum Network and its rising costs. With an increase in demand for scalability networks, Polygon is likely to onboard more projects.
The growing adoption of Polygon seems to boost investors’ overall sentiment in the crypto market. As per LunarCrush, Polygon’s dominance over all the social media platforms have grown by 636% in the last three months. This shows that the investors have been taking a considerable interest in Polygon.
Recently, Polygon had announced that it is to partner with the consulting wing of Infosys Ltd. This collaboration is Known as M-Setu. This aims to enable Infosys to provide disruptive technologies to its clients. In addition, M-Setu shall act as an open-source bridge that will allow enterprises to cross-operate using the Ethereum blockchain.
Additionally, billionaire investor Mark Cuban also invested in the Indian Blockchain company on May 25. Furthermore, he revealed that he had invested in Polygon, which can be seen in their website portfolio. Mark Cuban is known for his advocacy of cryptocurrencies. Even after Elon Musk has temporarily suspended accepting Bitcoin payments for Tesla, Cuban stated that Cuban’s basketball outfit brand’s Mavericks should continue to accept cryptos.
Scope of Polygon
Currently, the price of this cryptocurrency is around Rs 143. However, the coin has pumped over 10,000% over the past year and over 125% in recent months.
Polygon is also involved with some of the hottest grounds in cryptocurrencies. This includes Defi (Decentralized Finance), DApp (Decentralized Application), DAO’s (Decentralized Autonomous Organizations) and NFT’s (Non-Fungible Tokens).
Even though it has already captured a place among the top 15 cryptocurrencies of the world, the founders of Polygon have an ambitious plan to make it the third-largest crypto project following Bitcoin and Ethereum. Well, this is only the time that can tell but see the pattern of its investors. Nevertheless, it can be said that the founders are indeed on the right track to achieve their target.