Polygon describes itself as a Layer 2 scaling solution, implying that it has no plans to improve its present basic blockchain layer anytime soon. The project aims to simplify scalability and enable quick blockchain transactions.
Polygon uses a modified version of the Plasma framework, which is based on Ethereum's main-chain proof-of-stake checkpoints. Polygon's sidechains can handle up to 65,536 transactions per block because of their cutting-edge technology.
Polygon's sidechains are built to enable a wide range of decentralized finance (Defi) protocols accessible in the Ethereum ecosystem.
Polygon presently supports just the Ethereum base chain; however, based on community proposals and consensus, the network plans to expand support for more base chains. Polygon would then become a decentralized Layer 2 blockchain platform that is interoperable.
Staking is a critical aspect of the Polygon ecosystem since it is a Layer 2 solution that uses a network of proof-of-stake validators for asset security. Validators on the network will stake their MATIC tokens as collateral to participate in the network's PoS consensus mechanism in exchange for MATIC tokens. Polygon employs block producers at the block producer layer in addition to proof-of-stake checkpointing to create a higher degree of decentralization. These block producers use checkpoints and fraud-proof techniques to give the primary chains finality.
Polygon SDK is a modular and extensible framework for building ETH-compatible networks, written in Golang —an open-source programming language.
Use of Native tokens in the ecosystem
The Matic token (MATIC) is Polygon's native currency. It serves various purposes, one of which is to fuel the protocol via a gas-based system for paying network fees incurred by the network's processing capacity utilized to move data. This technique lets software developers and ecosystem participants use MATIC tokens to leverage the platform and development tools to create dApps on Polygon.