Blockchain Network
Last updated
Last updated
Blockchain is a distributed digital ledger technology that organizes encrypted transaction information into blocks and connects them, ensuring trust and secure transactions without the need for intermediaries. The blockchain infrastructure guarantees transparent value exchange between platform users and businesses, providing a foundation for issuing tokens used in the trading, distribution, and evaluation reward processes of content and products, as well as facilitating exchanges with domestic and international exchanges.
Polygon is a blockchain network that offers a wide range of Web3 tools and decentralized applications (DApps). As a high-performance blockchain supporting smart contracts, Polygon provides an environment where developers can create all types of services and applications, including blockchain games, governance and voting systems, and decentralized finance (DeFi).
Polygon was developed to overcome the limitations of the Beacon Chain (the initial version of the MATIC chain). The design goal of Polygon was to introduce smart contract functionality into the MATIC ecosystem without disrupting the operations of the MATIC Beacon Chain. As a result, unlike the MATIC Beacon Chain, Polygon offers robust smart contract capabilities and a high degree of compatibility with the Ethereum Virtual Machine (EVM).
Polygon employs the Proof-of-Staked-Authority (PoSA) consensus algorithm, which combines Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) mechanisms. This hybrid approach provides programmability and interoperability to the POL Beacon Chain. Validators receive incentives in the form of transaction fees generated from the blocks containing the transactions they validate.
PoSA utilizes a validator system where validators are elected based on the number of tokens they hold. These validators take turns validating transactions and adding them to new blocks on the chain. In the event of malicious attacks that cause validators to go offline, backup validators known as “Candidates” are responsible for maintaining security. These candidates report the situation to the Beacon Chain, resume processing within Polygon, and can propose the re-election of active validators.
Polygon was created to provide smart contract functionality. It adopts the ERC-20 token standard and operates as an EVM-compatible layer supporting decentralized applications (DApps), decentralized finance (DeFi) services, multi-chain support, and other Web3 applications.
Essentially, the POL Beacon Chain and the Polygon blockchain operate side by side. Polygon is not a so-called Layer 2 or off-chain scalability solution. Because Polygon is EVM-compatible, it supports Ethereum tools and DApps, enabling developers to easily migrate projects from Ethereum to Polygon. For users, this compatibility also allows seamless integration with applications such as MetaMask.
• Short Block Time
Polygon aims to achieve a short block time of up to three seconds on its live blockchain (mainnet). This enables fast transaction processing, quicker confirmations, and reduced potential delays.
• Rapid Transaction Finality
Polygon provides swift transaction finality, meaning that once a transaction is included in a block, it becomes irreversible and cannot be modified. This enhances the security and reliability of transactions on the Polygon network.
• Non-Inflationary Model
Polygon adopts a non-inflationary model for its native POL token. Unlike traditional inflationary models where new coins are generated through mining, POL block rewards are collected from transaction fees. This mechanism ensures a stable and predictable supply of POL over time.
• Ethereum Virtual Machine (EVM) Compatibility
Polygon is fully compatible with the Ethereum Virtual Machine (EVM). This compatibility allows developers to quickly migrate existing Ethereum-based applications and smart contracts to the Polygon ecosystem. It also provides users with a familiar environment and access to a wide range of DApps.
• Proof-of-Stake (PoS) Governance
Polygon employs a Proof-of-Stake (PoS) governance mechanism. PoS enables POL holders to participate in the network’s consensus and decision-making processes. By staking POL tokens, holders can contribute to block validation and participate in voting on network upgrades and proposals.
POL is the native utility token of the Polygon ecosystem. It is used for paying transaction fees on exchanges and the POL Beacon Chain, staking, asset transfers, and executing smart contracts on Polygon. Gas fees for blockchain transactions on Polygon can be paid using POL.
Similar to how ETH functions on the Ethereum blockchain, gas fees on Polygon provide incentives for validators to confirm transactions and secure the network. POL holders who wish to earn additional POL or contribute to network security can stake their POL through smart contracts. Additionally, they can delegate their stake to Polygon validators to earn a portion of block rewards. Validators can decide how much of the POL collected as gas fees is redistributed to delegators.
Polygon has introduced new functionalities and greater customization through smart contracts, driving the explosive growth of decentralized applications (DApps) and Web3 services. Smart contracts are applications (programs) executed via the blockchain that automatically perform specified actions (contract terms) when certain conditions are met. By using smart contracts, the need for third-party intermediaries is eliminated, significantly reducing operational costs.
The smart contracts on Polygon consist of contract code and two public keys. The first public key is provided by the contract creator, while the other represents the contract itself and serves as a unique digital identifier for each smart contract. All smart contracts are built through blockchain transactions and can be activated only when called by an EOA (Externally Owned Account) or another smart contract. However, the initial trigger is always initiated by an EOA (user).
The smart contracts on the BSC network have the following features:
• Trust and Transparency
Once the terms of a contract are recorded in a smart contract, none of the parties can change the contract conditions for personal gain. Additionally, all parties can view the terms, allowing everyone to track the execution of the contract and review information about the transactions.
• Security
Each record on the smart contract is linked to both preceding and succeeding records. This means that a hacker would need to reconstruct the entire chain to alter a single record on the ledger. While the records of smart contracts are accessible to anyone, the anonymity of the parties involved is maintained. Names and other private details of the parties are not disclosed.
• Automation
Conventional contracts may allow one or both parties to ignore specific aspects of the agreement, implement the contract differently, or fail to fulfill it altogether. However, such actions are impossible with smart contracts due to their automation feature. Since all tasks in a smart contract are completed mechanically, there is no need for any form of intermediary. Moreover, as everything is handled by software, there is no possibility of data manipulation or failure to comply with parts of the contract.
• Reduced Expenses
All parties involved in a smart contract can verify every transaction perfectly, eliminating the need for any intermediaries to perform and monitor complex payments. Instead, everyone can streamline all operations in real-time, meaning no fees or charges are incurred.
• Accuracy, Efficiency, and Agility
The automation feature of smart contracts enhances the speed of every step involved in contract execution. The programming ensures that the contract is fulfilled while maintaining accuracy. Once the prerequisites for executing the contract are met, the necessary actions are carried out immediately, consistently applying to any contract.
