Polygon, previously known as Matic Network, aims to provide major scalability improvements for decentralized applications by utilizing a modified version of Plasma with sidechains based on Proof-of-Stake. Polygon is designed to be an entire platform designed for launching interoperable blockchains. Developers can launch preset blockchains with attributes tailored to their needs. These can be further customized with a growing range of modules, which allow developers to create sovereign blockchains that have more specific functionality.
MATIC was designed to address the high fees currently being charged on exchanges and centralized exchanges by allowing users to use their existing wallets (USDT wallet for example) as a trade tool, just like today. Users can trade without having to go to a wallet to exchange money, a single-click experience. We believe in a currency system where technology that benefits the end user is prioritized over legacy technology. There is much room to improve on the decentralized exchange, and we want to create the opportunity for users to buy crypto and store it securely with a click.
How does it work?
Polychain generates, maintains and stores cryptocurrency on the sidechain, not on the main chain. This allows Polychain to do:
Create security against coin freezing due to malicious external attack
Don’t need to trust central authorities to do the difficult computational work that comes with Proof-of-Work blockchains
Allow nodes to communicate to the main chain by using multi-signature, thanks to block sharding
Simplifies mining with a fork in the chain that can only run software built by the company
Multiple developers can also work on their sidechain in parallel to the main one. Each developer can assign their sidechain's coins to a multi-signature address controlled by them. This is also called a smart contract.