MATIC stacked

What is Polygon (Matic) and how does it work?

Polygon is an ecosystem built make Ethereum more scalable, i.e. to increase the number of transactions that can be handled. Polygon, formerly called Matic Network, has developed a Layer 2 sidechain for Ethereum that has become very popular. A sidechain means that it operates as a separate blockchain, but is connected to the main blockchain, which in this case is Ethereum. Because they are connected, they can talk to each other and you can move assets between them.

Firi Explains: What are Layer-1 and Layer-2 protocols?

In a decentralized ecosystem, we can look at Layer-1 protocols as the basic architecture. Examples of Layer-1 protocols are Ethereum and Cardano which both have their own blockchain and their own ecosystem. Layer-2 protocols build on top of Layer-1 protocols. Among Layer-2 protocols we find, for example, Polygon, which has its own ecosystem built on the Ethereum network. Another example of Layer-1 and Layer-2 is Bitcoin and Lightning Network.

Layer-1 and Layer-2 protocols work well together, as the Layer-2 protocol uses the architecture of the Layer-1 protocol. Two individual Layer-1 protocols, on the other hand, do not work optimally, as they have two very different architectures.

The side chain has a high capacity and provides fast and cheap transactions. One disadvantage is that it is not as secure as Ethereum's main chain, partly because the network of validators (those who approve transactions) is not as decentralized. Partly because of this, Polygon launched an alternative scaling solution called zkEVM in March 2023.

What is Polygon zkEVM?

In the same way as the sidechain described above, zkEVM should achieve scalability and increased performance on Ethereum. While the sidechain has a weakness in that it is not as secure as Ethereum's main chain, zkEVM is as secure and decentralized as the main chain. This is the big advantage of the new scaling solution.

ZkEVM is an implementation of ZK-Rollups, which is a type of scaling solution based on Zero-Knowledge (ZK) proof. ZK-Rollups work by processing and aggregating multiple transactions off the main chain and then producing a single proof that summarizes those transactions. The proof is then published on the main chain to prove that all these transactions are valid, without revealing the actual content of each transaction. This reduces the amount of data needed to be stored and verified on the main network.

With Polygon zkEVM, developers and users can benefit from higher transaction speeds, lower fees and better scalability. It enables Ethereum-compatible applications (dApps) and smart contracts to run more efficiently and cost-effectively on the Polygon network.

Zero Knowledge technology is considered by many to be the preferred scaling technology for the future because it solves the blockchain trilemma to a greater extent than alternative solutions.

Firi explains: What is the blockchain trilemma?

In the world of crypto, the so-called "blockchain trilemma" is often the biggest problem developers face. The concept was first discussed by Ethereum co-founder Vitalik Buterin and describes three challenges that developers face when building blockchains: decentralization, security and scalability. In the process of developing a blockchain, a trade-off occurs where developers generally have to sacrifice one of the three aspects in favor of the other two.

Why do people have faith in Polygon?

Along with Solana, Polygon is the most popular scaling solution on Ethereum with around 400,000 daily active users and $1 billion in locked values (TVL). Here are some popular uses for Polygon:

  • Decentralized Finance (DeFi): Polygon is a popular platform for DeFi applications. It offers faster transactions and lower fees compared to many other options. This enables users to trade, borrow, place deposits and participate in liquidity management in a more efficient way. For example, Polygon can be used on decentralized exchanges such as Uniswap, Balancer and 1inch, as well as the loan platform Aave.
  • NFT marketplaces: Several of the largest marketplaces for buying and selling NFTs use Polygon due to fast transactions and low costs. Examples are Opensea and Rarible.
  • Gaming Applications: Matic Network is also suitable for game developers who want to take advantage of the faster transaction speeds and increased scalability. This platform can handle a large number of transactions simultaneously, which is essential for gaming. The most popular game on Polygon is Planet IX, which is an NFT-based strategy game.

What is MATIC and what is it used for?

Matic is the cryptocurrency used in Polygon's ecosystem. Matic is an ERC20 token which means it is compatible with the Ethereum blockchain.


The cryptocurrency mainly has three uses in addition to pure investment.

  • Payment method: MATIC is used as a payment method within the Polygon network. When users conduct transactions, interact with smart contracts or use services on the Polygon Platform, they may be required to pay transaction fees or charges in the form of Matic.
  • Staking: By staking Matic, users contribute to the security and consensus process on Polygon. For this, the user receives a reward in the form of extra Matic. Staking Matic is currently not possible on Firi, but support for this will come in the future.
  • Governance: The MATIC token also gives its holders the opportunity to participate in Polygon's governance process. This means that MATIC owners have voting rights and can participate in decision-making about future upgrades, protocol changes and management of the Polygon ecosystem.

How to buy and store MATIC?

An easy and cheap way to buy and store MATIC is through a crypto exchange like Firi. Firi makes it easy to both buy, sell and store your Matic and other cryptocurrencies.

When you create an account with Firi, a MATIC-wallet is automatically generated for you. In practice, this means that Firi safely stores your cryptocurrency for you.

You get access to your MATIC-wallet by logging in to your user account with e-mail or Vipps, and by verifying yourself with BankID. You can easily send and receive Matic to your wallet at Firi from other exchanges or other MATIC-wallets.

Marius Høgevold25/05/2023