Let’s find out more about Polygon (Matic)- Is it a good investment? (Non Finance Advice)


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Polygon (MATIC) is an Ethereum token that powers the Polygon Network, a scaling solution for Ethereum. Polygon aims to provide faster and cheaper transactions on Ethereum using Layer 2 sidechains, which are blockchains that run alongside the Ethereum main chain. Users can deposit Ethereum tokens to a Polygon smart contract, interact with them within Polygon, and then later withdraw them back to the Ethereum main chain. The MATIC token is used to pay transaction fees and participate in proof-of-stake consensus.

The mission of Polygon is to create a decentralized world. It solves a big problem by helping Ethereum in scalability. With Ethereum use increasing, transaction costs for increasing. So polygon becomes a good side chain which helps users with much lower transaction costs on the Ethereum chain. Polygon is making the right partnerships with other projects like Sushi, Aave, Quickswap, etc.

Picture Polygon as being like an express train on a subway — it travels along the same route as the regular train, but it makes fewer stops and thus moves much faster. (In this analogy the main Ethereum blockchain is the local train.) To create new MATIC and secure the network, Polygon uses a proof-of-stake consensus mechanism — which means that one way you earn money on MATIC you hold is via staking.

Validators do the heavy lifting — they verify new transactions and add them to the blockchain. In exchange, they may receive a cut of fees and newly created MATIC. Becoming a validator is a commitment that requires running a full-time node (or computer) and staking your own MATIC. If you make an error or act maliciously (or even if your internet connection is glitchy) you could lose some of your staked MATIC.

Delegators stake their MATIC indirectly via a trusted validator. This is a much lower-commitment version of staking. But it still requires research — if the validator you pick acts maliciously or makes errors you could lose some or all of your staked MATIC.

Polygon is also trying to develop an enterprise solution with Ernst and Young. It’s partnering with google, Draft kings. Polygon is getting active in Metaverse e.g. MANA (decentraland). Fund management houses are interested in creating funds, especially for Polygon.

However, Polygon’s biggest strength of being an Ethereum ally maybe its disadvantage as well. Ethereum is looking to upgrade itself by 2022 ETH 2.0. So, one can think about Polygon losing some relevance. However, the Polygon management team has a vision and they are looking to transform the company into service as Infrastructure management which can work with other big chains too. Competition is from Polkadot (DOT) and Cosmos. However, Polygon is confident that they are better than the competition. The average price target for Polygon Matic in the next five years is around 7 USD. Based on Polygon quality, usability, and end use …I find it as a promising investment that I am investing a small sum that I look to dollar cost average as I gain more confidence in Polygon’s ability to survive and thrive in the post-ETH 2.0 world. It’s not financial advice. Please do your own due diligence

00:00:00 Introduction
00:00:56 What is Polygon Vision
00:01:45 Polygon Matic price in last one year
00:02:33 Why should one invest in Polygon Matic! What problem does Polygon solve? How it helps Ethereum!
00:04:52 Why should one invest in Polygon Matic! Right partnership!
00:06:24 Why should one invest in Polygon Matic! Metaverse play
00:07:48 Why should one invest in Polygon Matic! Increased adoption, revenue, value
00:09:12 Polygon Management team
00:09:40 Risks to Polygon
00:10:13 Polygon vision post-ETH 2.0
00:11:23 Polygon vs competition
00:11:57 Polygon Matic price targets
00:13:03 Polygon’s investor sentiments
00:13:47 My/Possible investment strategy for Polygon
00:15:14 See you soon


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