Coin Bureau: Current and future analysis of Polygon

The total cost of the two levels of Ethereum locks exceeds US $ 10 billion and has not been shown to be affected. Polygon is more than half of it, and it has overtaken Ethereum in a short time with modern users.

Synopsis: Coin Bureau's video, which has 1.74 million YouTube subscribers, has been converted to text so anyone can read it faster and easier. However, the concern is that there will be too many "calls" in the case of personal KOL videos, so we hope that readers will be able to see more content again.

This section describes and analyzes the development of Desktop Corner polygons and is divided into the following five sections.

1. Introduction to polygons

2. Updates and updates (April-November)

3. Cost estimate

4. The path

V. Concerns about polygons

The video content is as follows.

The price of MATIC has been fluctuating and fluctuating widely since investors started the campaign. What will happen next?

Ethereum fuel prices continue to rise, increasing demand for affordable two-step scaling solutions. Recently, the total value of all Ethereum second-level metrics broke the US $ 10 billion mark and found no impact. Polygon is more than half of it, and it has overtaken Ethereum in a short time with modern users.

Today we will briefly explain Polygon to understand the progress of the process and why it can be a blockbuster with MATIC tokens.

1. Introduction to polygons

If you haven't heard of polygons, listen carefully to what I have to say next. Polygon was created in 2017 by Anurag Arjun, Janti Kanani and Sandip Narwar. for

Polygon was originally called the MATIC network and was renamed Polygon in February 2021. Honored Ethereum developer MahaloGelek is the fourth co-founder.

Polygon was developed by Polygon, a non-profit software company in India, mainly affiliated with the MATIC Foundation, a non-profit MATIC Foundation (now renamed Polygon Foundation, the principle is not yet clear).

In 2019, Polygon raised $ 5.5 million through token sales and raised millions of dollars from members and institutions. Although still under construction, the main network was launched in June 2020.

Polygon works seamlessly with Ethereum's blockchain network and is working on other solutions for this.

There are currently two Polygon solutions, but the only one available is the original MATIC network, now known as the Polygon PoS chain. This project can only be seen by continuously sending snapshots of the Polygon PoS chain to the Ethereum blockchain. This snapshot is sent by Polygon's 100 validators, which can be used to repair user accounts if Polygon's PoS chain fails.

Polygon's 100 validators are not yet involved in the commercialization of the Polygon PoS chain. These were only completed by a second group of 7-10 block makers from the Polygon Foundation.

Polygon claims to be able to perform 1 to 10,000 transactions per second, but given its average value, it can perform up to 65,000 transactions per second.

The MATIC base is an ERC20 token provided by Ethereum. It is only used to represent 100 validators in the Polygon PoS chain and can be selected. Currently, MATIC rewards annual registration for usable and licensed users at approximately 12%. These two entities have no minimum stake, but users must have enough MATIC to be in the top 100 and all MATIC tokens are closed for 21 days.

MATIC tokens will also be used to pay for the use of the Polygon network and for future Polygon upgrades. The low price of holding and the close relationship with Ethereum has made it possible to deliver Ethereum's popular DeFi protocol on Polygon, with the total cost of regulation currently closing at around $ 5 billion.

2. Upgrades and Updates

Phase 1 (April to June)

It's been almost 9 months since the last Polygon update, and it's no exaggeration that a lot has happened since then. Shortly after the update (in April of this year), AAVE announced the launch of Polygon, which is considered one of the main drivers of up to 10x increase for Polygon live users for a period of time. short period.

At the end of April, Polygon announced DeFi funding of around $ 150 million, promising that 2% of that funding would be used to fund mining on the DeFi protocol over the next two to three years.

Billionaire Mark Cuban announced in May his sponsorship of the Polygon project, but it is not yet known how much he himself invested in the project.

The day after the news broke, Polygon announced the completion of the Polygon SDK, which meant developers could build and build on two layers of Ethereum without any effort. for

The other day, Polygon included privacy throughout the REN chain, allowing investors to trade more than six digital cryptocurrencies for Polygon, including BTC, DOGE, and LUNA. for

Polygon also announced integration with Google's BigQuery platform to allow developers to easily analyze Polygon data on channels. for

In June, Polygon partnered with AU21 Capital to raise $ 21 million for Polygon developers. for

Polygon also announced the release of PolygonScan, the Polygon Block Explorer (Ethereum's most popular blockchain explorer) developed with help from EtherScan. for

In mid-June, the Grayscale Trust Fund announced that it plans to build trust in 13 cryptocurrencies, including Polygon. The greyscale polygon confidence has not been adopted, but given the recently established greyscale confidence in Solana, it might be about time. for

At the end of June, Polygon announced global data that could potentially create a layer with strong warnings. As far as I know it can be used to improve the security of the channel itself and the safety of its users, I have to admit Polygon can do that, but it's amazing that it came out very quickly. On the second day of the news, Polygon announced that the sandbox game sandbox will be gradually moving from Ethereum to Polygon.

Phase 2 (July - September)

In mid-July, Coinbase Wallet added support for the Polygon network. for

Polygon also announced its own NFT and blockchain games studio called Polygon Studio and provided funding of $ 100 million. for

In late July, Binance added support for the Polygon network, allowing users to withdraw ERC20 tokens directly from the network.

In mid-August, Polygon announced that it would use $ 1 billion worth of MATIC tokens to enhance the release of unconscious scaling technology.

On the same day, Polygon announced that it had acquired Hermez Networks for $ 250 million in MATIC tokens valued at up to $ 250 million upon signing of the deal. As you can guess, Hermez is one of the second Ethereum solutions using zero-aware technology. According to Hermez data, the zk rollup process can accomplish 2000 conversions per second, which is a pretty good number.

At the end of August, Polygon announced the development of the Polygon Ecosystem DAO Plan, which provided for the governance policy of the Polygon community.

In September, Coinbase announced that it would use the Polygon network, and Polygon would be the best fit for all of Ethereum's expansion plans. Officials also said support for landlines will be added.

In mid-September, Polygon announced a partnership with Ernst & Young to provide privacy solutions to Ethereum using zk rollup technology. Ernst & Young is just one of the big four accounting firms, which is a big business. for

At the end of September, Osprey announced the creation of the Osprey Polygon Trust Fund for accredited investors in the United States. for

Crypto.com also added support for the Polygon network, all indicating that Polygon users frequently overtake Ethereum. for

Phase 3 (October - November)

In October, OpenSea announced its distribution of Polygon. As we all know, OpenSea is the most popular NFT cryptocurrency industry. for

In late October, Bitwise followed in Osprey's footsteps and introduced Polygon funds to businesses. for

They find and fix the gaps in the Polygon network. This inconvenience can cost users $ 850 million in cryptocurrency, but unfortunately this disadvantage does not occur. for

In mid-November, Polygon announced Miden, another zero-proof Ethereum-based solution. Compared to Hermez zero knowledge of Miden zk Stark is more difficult, so I won't go into details here. for

One of the advantages of Miden is that it has its own virtual machine that is compatible with Ethereum virtual machines, which allows it to support contracts smarter than Ethereum. I think I mentioned before that the scientist was unaware of the Facebook developer Maiden, but now a lot of people are running into this business.

The National Football League (NFL) announced in November that it would offer NFT tickets through the Polygon network.

Polygon also announced an integration with Arweve, a storage repository that permanently stores data in distribution. Because Arweave actually preserves the historical data of the Solana channel, it also contains AR, which is an important symbol for some works. for

3. MATIC value analysis

Every Polygon announcement and improvement has had an impact on MATIC's valuation estimate. Since March, the token price difference has become noticeably parabolic. The current price will increase six times from March, which is lower than other cryptocurrencies at the same time, and the reason is simple.

The increase in sales is due to MATIC programs. As you can see, the MATIC is more open every 6 months. MATIC opening hours appear to be associated with different MATIC rates. Previously, MATIC's price had fallen before and after the foreclosure, most recently on November 5, meaning Polygon's early investors sold MATIC. It is not easy to imagine that the top price of MATIC is 2.25 cents. For first time investors, I understand because they already have a return on investment of almost 1000 times. for

Fortunately, most of MATIC was scrapped by Polygon investors as soon as it was shut down. Most of the MATICs that have not yet landed will go to the Polygon Group and the Polygon Foundation. As explained in the previous video, the Polygon Foundation does not welcome funding for the expansion of the Polygon ecosystem. for

Most of the revenue comes from the sales of MATIC tokens by the Polygon Foundation. for

Additionally, Polygon's chief investment officer Dean Thomas said in an October statement: “Now that direct investment is allowed, we can now directly reduce base checks. This shows that the base has sold more MATICs than we have. "

But what is the real demand? According to PolygonScan statistics, the Polygon network has more than 120 million specialized locations. In other words, the number of network addresses has increased almost 1,000 times since March. It's crazy. for

The problem is that the total cost tied to the Polygon network peaked at the end of June and then stabilized at around $ 5 billion. This shows that every new wallet is created on the Polygon network through registered companies such as Binance Wallet and Coinbase Wallet and Polygon Wallet Mix. for

An even bigger problem is that since October of last year, the current occupancy of portfolios at the Polygon site has remained stagnant, if not in decline. This could be due to their own joint ventures and other Tier 2 companies such as Arbitrum and Optimism, which saw the total cost of millions of dollars attached to the Ethereum protocol model. for

But the good news is that Polygon is still Ethereum's 2nd largest network. If you want to know how much MATIC will be before the bull market ends, our estimate is 2-3x. MATIC's high market value means that its growth will not be very high. That said, MATIC will be looking to take bigger steps, which will ultimately depend on the Polygon approach.

4, polygonal road map

The Polygon co-founders recently introduced the Polygon method in a report by Sandip Nairval. Only 5 things are unlikely to happen.

1) The launch of Avail Chain is mentioned above.

2) Run the Nightfall zk stacking scaling solution above.

3) Announce the hope of a solution that has not yet been announced.

4) Introduction of special side chains for Ethereum application.

5) Introduction to chain industry which can use Polygon's PoS side chain to ensure safety. for

The Polygon team's goal is to have all of these plans in place by early 2022, which is at the heart of much thinking in the cryptocurrency market. for

In a question-and-answer session after Sandeep announced his path, it was pointed out that Polygon would ultimately become the third largest cryptocurrency after Bitcoin and Ethereum. When it comes to the number of users, Sandeep acknowledges that he expects to reach at least 100 million regular users and millions of total users over the next few years, which is the required target. For this, Polygon should quote the phrase "Ethereum's Solana-like scalability secures my other crypto assets".

When asked if Coinbase would join Polygon or use it to create the NFT business, Sandeep declined to comment, saying he himself believed this was a clear indication that this would happen.

Polygon other important points can be found in the work, interviews and presentations of other members of the group. For example, in an interview in November, Dean Thomas said that many auto investment companies will be listed on international stock exchanges in the coming months. for

Dean is also focused on building partnerships with Polygon with crypto companies and niche companies NFT, Meta Universe, and GameFi. for

At the end of November, Polygon co-founder Mikhailo Bijelic submitted a request to the Uniswap board, asking for a split for Polygon. The approvals were passed on December 2 and 98% of respondents voted in favor. This means that the distribution of Uniswap is near. for

The last large polygon I could find was an interview with Polygon co-founder Jaynti Kanani in May of this year. In the interview, he envisioned the development of MATIC after changing the name to a future polygon. for

Jaynti also explained that Polygon received money from selling MATIC tokens, which alarmed Polygon, mirroring Sandip's comments in a March interview that "we are using our money to build an ecosystem." for

5. Concerns about polygons

My first concern was the Polygon Foundation and the Polygon team continued to sell MATIC tokens. This will obviously have a negative impact on the MATIC value. for

Polygonal defense is not an option but expands as soon as possible. As the MATIC Lockdown Rewards expire in 2025, the one thing that encourages consumers to secure the Polygon network are exchange rates. for

However, it would be better to know how many MATIC base and group are used for MATIC. As far as I know this file cannot be found, but I commend Polygon for revealing some of the features of the Etherscan wallet. for

It has to do with my second concern, transparency.

Yes, Polygon has transparent pages, but the only name is the wallet found on Etherscan. What I want to know is who is running 7-10 block design nodes on the PolygonPoS network. This is because nodes can cause incompatibility in the Polgon sidechain.

Polygon also said the export hierarchy was decentralized, but Polygon's design had not gone into detail in recent speeches and interviews. It is true that Polygon is still a startup, unless there are only 100 validation nodes in the export process on the Polygon network, this is our third concern for this project. for

Polygon announced the DAO, but has yet to establish a management system and has not indicated where these plans are located. The closest thing I see to community management is the Polygon and MATIC web chat management section, but they're not that strong. for

The only strategy that can be evoked is to solve the problem that the top 10 users of the Polygon network hold more than 80% of the stakes, which is very dangerous.

Indeed, Polygon seems to be aware of these issues, and such a distribution seems to be based on Sandeep's theory. Despite concerns, adoption of the Polygon network is unlikely to increase. We are very excited about the updates that will make the app available for MATIC, and we believe we will address these important issues in a timely manner.