The Ethereum blockchain is a big hub for lots of different economic activities, like NFT markets and games, as well as the growing DeFi ecosystem. Ethereum is good for these activities because it can use smart contracts to make lots of different applications.

But, because more and more people are using these applications, it can make the Ethereum blockchain slow, and the fees you have to pay for transactions can get really high. This can make it not worth it to invest small amounts of money often.

That’s where Polygon comes in. It’s like a fast track for trains, running alongside the main Ethereum track. Polygon helps by making transactions faster and cheaper for users. You can move some of your crypto over to Polygon and use a bunch of popular crypto apps that were only on the main Ethereum track before.

What is MATIC?

Polygon has its own money, called MATIC. You use MATIC to pay fees on the Polygon network, for staking, and for making decisions about how Polygon works. You can also buy and sell MATIC on Coinbase and other websites.

The name MATIC comes from an earlier version of Polygon. Before, it was called Matic Network, but they changed the name to Polygon in 2021.

How does Polygon work?

Think of Polygon like an express train compared to a regular train. It moves faster because it doesn’t stop as much. Polygon uses different technologies to make this fast track and connect it to the main Ethereum track.

To make new MATIC and keep the network safe, Polygon uses a proof-of-stake system. This means you can earn money by staking your MATIC.

Validators do the hard work. They check new transactions and add them to the blockchain. In return, they might get some fees and new MATIC. Being a validator is a big commitment because you have to run a computer all the time and stake your own MATIC. If you mess up, you could lose some of your MATIC.

Delegators stake their MATIC indirectly through a trusted validator. This is easier, but you still have to be careful. If the validator messes up, you could lose some or all of your MATIC.

How do you use the Polygon network?

The Polygon network lets you do a lot of the same things as the main Ethereum network, but with much lower fees. You can use decentralized exchanges, lending and savings apps, NFT markets, and even “no-loss prize games.”

To use Polygon, you need to send some crypto to a wallet like Coinbase Wallet. Then, you can move some of your crypto to the Polygon network. You’ll also need some MATIC to make transactions, but even a little bit goes a long way because fees are so low.

Because fees are low and transactions are fast, Polygon is a good way to try out DeFi without risking too much money. Just remember that DeFi can be risky, so start small and only invest what you can afford to lose, especially if you’re new to it.

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