Polygon

A scaling network built on top of Ethereum that processes transactions faster and cheaper than the main Ethereum blockchain.

Polygon operates as a separate layer that handles transaction processing off the main Ethereum chain, then periodically settles batches of transactions back to Ethereum for security. This approach maintains full compatibility with Ethereum—using the same wallet addresses and able to transfer assets between chains—while drastically reducing transaction costs from several dollars to fractions of a cent.

How It Works

Polygon uses a sidechain architecture that runs parallel to Ethereum's main chain (Layer 1). Transactions are processed on Polygon's network and then checkpointed back to Ethereum for final settlement. This provides:

• Speed: Block times of approximately 2 seconds (vs. 12 seconds on Ethereum)
• Low Cost: Transaction fees typically under $0.01 (vs. $5-50+ on Ethereum mainnet)
• EVM Compatibility: Full compatibility with Ethereum smart contracts and tools
• Ethereum Security: Final settlement on Ethereum's main chain

History

Originally launched as "Matic Network" in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, the project rebranded to Polygon in February 2021 to reflect its expanded vision beyond a simple sidechain to become a comprehensive multi-chain scaling platform for Ethereum.

Use Cases

Polygon has become one of the most widely used Ethereum scaling solutions, particularly for:

• Payments: High-volume, low-value transactions
• Gaming: NFT-based games requiring frequent transactions
• DeFi Applications: Decentralized exchanges, lending protocols, yield farming
• NFT Marketplaces: Minting and trading NFTs at lower costs

Why It Matters for Institutions

Major enterprises have adopted Polygon for blockchain applications, including Starbucks (loyalty program), Reddit (Community Points), Adobe (NFT verification), and Meta (Instagram NFTs). The network's ability to handle high transaction volumes at minimal cost makes it attractive for enterprise use cases where Ethereum mainnet fees would be prohibitive.

As of 2025, Polygon processes millions of transactions daily and hosts thousands of decentralized applications, making it a critical piece of Ethereum's scaling infrastructure.