How can incubation-type investments enter Web3 in compliance with regulations?
In the early years, as long as a financing message was released, Web3 projects could take off instantly, the community would explode, and exchanges would line up. But now, Web3 is no longer the era of "XXX completed financing".
In this cycle of scarce narratives and dispersed traffic, capital is no longer an omnipotent driving force. More and more investors are beginning to realize that if you want to make a project really run, it is not enough to just throw money, you have to get involved yourself.
In the early years, as long as a financing message was released, Web3 projects could take off instantly, the community would explode, and exchanges would line up. But now, Web3 is no longer the era of "XXX completed financing".
In this cycle of scarce narratives and dispersed traffic, capital is no longer an omnipotent driving force. More and more investors are beginning to realize that if you want to make a project really run, it is not enough to just throw money, you have to get involved yourself.
How to make money with blockchain: 10 ways to make money
Want to know how to make money with blockchain technology? Blockchain technology, as an innovative distributed ledger technology, is gradually penetrating into all walks of life. In addition to digital currency investment, there are many other ways to make money. This article will introduce you to 10 different ways to make money, hoping to help readers who are interested in blockchain technology.
1. Mining
One of the most common ways to make money in blockchain is mining. By using computers to perform complex mathematical calculations to verify transactions and add new blocks to the blockchain, corresponding rewards are obtained. But mining requires a lot of computing power and electricity, which may not be cost-effective for ordinary investors.
2. Trading digital currencies
In addition to mining, you can also make money by trading digital currencies. By buying and selling digital currencies on the trading platform, you can make profits through the trading difference. Of course, the digital currency market is volatile, and you need to have a certain sense of risk.
3. Blockchain investment funds
Blockchain investment funds are a more stable way to make money. By investing your money in a professional blockchain investment fund, let professionals help you manage your investment portfolio and get a stable return from it.
4. Blockchain gambling
Blockchain gambling is an emerging field that uses smart contracts and blockchain technology to ensure fairness and transparency. Participants can get certain rewards through gambling, but they also need to pay attention to risks.
5. Blockchain content creation
If you are good at writing or shooting videos, you can consider making money by creating blockchain-related content. You can get income through advertising revenue, sponsorship, etc.
6. Blockchain airdrop
Blockchain airdrop is a way to make money by getting digital currency for free. The project party will send free tokens to users who hold certain tokens, and participating in the airdrop can get additional income.
7. Blockchain games
Blockchain games are a new form of games that have emerged in recent years. The fairness and transparency of the game are ensured by blockchain technology. Players can earn digital currency rewards through games.
8. Blockchain forensics
Blockchain forensics is a technology that helps police track criminals. You can also get corresponding rewards by participating in forensics.
9. Blockchain payment
Blockchain payment is an emerging payment method. By using digital currency for payment, you can enjoy a low-cost and fast payment experience.
10. Blockchain consulting services
If you have a deep understanding of blockchain technology, you can consider providing blockchain consulting services. You can help companies build blockchain systems, or conduct blockchain project evaluations, etc., and get generous consulting fees.
The above are 10 ways to make money on blockchain. I hope it will be helpful to you. Whether you want to try investing, creating content, or providing services, blockchain technology provides you with a wealth of opportunities to make money.
Want to know how to make money with blockchain technology? Blockchain technology, as an innovative distributed ledger technology, is gradually penetrating into all walks of life. In addition to digital currency investment, there are many other ways to make money. This article will introduce you to 10 different ways to make money, hoping to help readers who are interested in blockchain technology.
1. Mining
One of the most common ways to make money in blockchain is mining. By using computers to perform complex mathematical calculations to verify transactions and add new blocks to the blockchain, corresponding rewards are obtained. But mining requires a lot of computing power and electricity, which may not be cost-effective for ordinary investors.
2. Trading digital currencies
In addition to mining, you can also make money by trading digital currencies. By buying and selling digital currencies on the trading platform, you can make profits through the trading difference. Of course, the digital currency market is volatile, and you need to have a certain sense of risk.
3. Blockchain investment funds
Blockchain investment funds are a more stable way to make money. By investing your money in a professional blockchain investment fund, let professionals help you manage your investment portfolio and get a stable return from it.
4. Blockchain gambling
Blockchain gambling is an emerging field that uses smart contracts and blockchain technology to ensure fairness and transparency. Participants can get certain rewards through gambling, but they also need to pay attention to risks.
5. Blockchain content creation
If you are good at writing or shooting videos, you can consider making money by creating blockchain-related content. You can get income through advertising revenue, sponsorship, etc.
6. Blockchain airdrop
Blockchain airdrop is a way to make money by getting digital currency for free. The project party will send free tokens to users who hold certain tokens, and participating in the airdrop can get additional income.
7. Blockchain games
Blockchain games are a new form of games that have emerged in recent years. The fairness and transparency of the game are ensured by blockchain technology. Players can earn digital currency rewards through games.
8. Blockchain forensics
Blockchain forensics is a technology that helps police track criminals. You can also get corresponding rewards by participating in forensics.
9. Blockchain payment
Blockchain payment is an emerging payment method. By using digital currency for payment, you can enjoy a low-cost and fast payment experience.
10. Blockchain consulting services
If you have a deep understanding of blockchain technology, you can consider providing blockchain consulting services. You can help companies build blockchain systems, or conduct blockchain project evaluations, etc., and get generous consulting fees.
The above are 10 ways to make money on blockchain. I hope it will be helpful to you. Whether you want to try investing, creating content, or providing services, blockchain technology provides you with a wealth of opportunities to make money.
Web2.0 links Web3.0—Analysis of Web3.0 startup projects
Today, let’s talk about startup projects that link Web2.0 to Web3.0, which are suitable for Web3.0 practitioners who have resources and want to start a business.
This article is a project business argument based on the author’s own business characteristics (commercialization of recruitment platform enterprise services), the collection and collation of relevant research reports, and interviews with Web3.0 professionals (Darren from Xiaohongshu Investment Department, B4fomo Overseas Operations Manager, Web3.0 well-known KOL Uncle Qi, etc.)
Today, let’s talk about startup projects that link Web2.0 to Web3.0, which are suitable for Web3.0 practitioners who have resources and want to start a business.
This article is a project business argument based on the author’s own business characteristics (commercialization of recruitment platform enterprise services), the collection and collation of relevant research reports, and interviews with Web3.0 professionals (Darren from Xiaohongshu Investment Department, B4fomo Overseas Operations Manager, Web3.0 well-known KOL Uncle Qi, etc.)
1. What is Web3.0At the beginning of the article, in order to facilitate readers' friendly reading, let's popularize what Web3.0 is.1. Core conceptWeb 3.0 is considered to be the next generation of the Internet. The concept of Web3.0 appeared as early as around 2000 and was re-proposed by the co-founder of Ethereum and the founder of Polkadot in 2014. On the basis of Web2.0, Web3.0 returns to the original intention of Internet open source and decentralization through various blockchain technologies to build a user-led, decentralized network ecosystem.2. Internet development timelineFrom the development trend, Web3.0 is a network that is completely created, distributed, interacted and owned by users in a set of smart contract management, which does not require the resource aggregation and unified allocation of centralized platforms.3. Main featuresWeb3.0 emphasizes the ownership of data value as the core, and has the characteristics of decentralization, data ownership, data interconnection, privacy protection, high intelligence and permanent preservation.1) DecentralizationBased on the distributed storage and computing power of blockchain, the rights and obligations of the entire network nodes are the same. The data in the system is jointly maintained by the nodes of the entire network, and no longer relies on the central processing node, realizing the distributed storage, recording and updating of data.2) Data OwnershipThe data content created by users is controlled by users, and is not completely controlled by any one organization. Data rights confirmation and authorization based on blockchain technology will improve the situation where data is privately stored by the head platform, and users can master the right to use and ownership of personal data.3) Data InterconnectionUser behavior is not restricted by third-party entities, and Internet applications break the boundaries and barriers between the original ecology. Applications based on different infrastructures can solve interconnection through "cross-chain" protocols.4) Privacy ProtectionBased on cryptography and distributed storage and other technologies, the privacy transactions of user data content, the separation of physical identity and digital identity, and other aspects of data privacy, identity privacy and computational privacy involved in actual operations are protected.5) High IntelligenceIntelligence is not only reflected between people and the Internet, but also in the interaction between software and software. The use of artificial intelligence and big data provides optimization and better suggestions for users' network behavior, and various push notifications for users are more accurate.6) Permanent preservationThe new data center and new data platform based on blockchain technology can achieve permanent preservation of key data through the distribution and intelligence of the storage system, realize data resourceization and value, and truly realize the extensive storage of information and data.4. Main components of the ecosystem1) Web3.0 wallet-Web3.0 login account method is also the ticket to enter Web3.0Web3.0 wallets are all non-custodial, and users can safely store digital assets without trusting third parties. Only users can fully control the key + digital assets to enter the Web3.0 world. Most Web3.0 wallets are relatively simple to set up, and the setup process only takes a few minutes. After creating an account, users can start trading and easily access various Web3.0 products.
Web3 on the left hand and AI on the right hand are the real Web3.0
The hottest technology topics in the past two years are AI and Web3.
The explosion of AI is visible. After ChatGPT, from models to products, from content generation to autonomous agents, the whole rhythm has shifted from "people teaching AI to do things" to "AI finding things to do itself". After the heat of Web3 subsided, it still retained the construction heat of basic modules such as stablecoin payment, on-chain clearing, and RWA structure.
On the surface, they are two unrelated technical fields, one talking about intelligence and the other talking about decentralization. But more and more entrepreneurs and technology communities are beginning to realize that these two systems may be getting closer to each other, and even need each other.
The hottest technology topics in the past two years are AI and Web3.
The explosion of AI is visible. After ChatGPT, from models to products, from content generation to autonomous agents, the whole rhythm has shifted from "people teaching AI to do things" to "AI finding things to do itself". After the heat of Web3 subsided, it still retained the construction heat of basic modules such as stablecoin payment, on-chain clearing, and RWA structure.
On the surface, they are two unrelated technical fields, one talking about intelligence and the other talking about decentralization. But more and more entrepreneurs and technology communities are beginning to realize that these two systems may be getting closer to each other, and even need each other.
> Ecosistema Web3.0:
> web3.0:
The question is, do they really need each other? Or are they just two buzzwords trying to find a story to tell?
If you look at it from a structural perspective, the answer is actually very clear - AI is the first actor that can really use the Web3 system, and Web3 has finally found its most suitable service object.
Why does AI need Web3?
From another perspective, AI actually brings not only "new scenarios" to Web3, but also "new solutions to old problems".
Web3 has been trying to build a "trustless collaborative system" for years - allowing strangers and institutions to automatically settle and fulfill contracts without platform matchmaking, and without cumbersome intermediaries and clearing processes. But the problem is that there has never been an object that really "needs to use" this system.
Human users have too high requirements for the user experience: wallets are difficult to use, gas fees are too expensive, transactions are too slow, KYC is complicated, plus regulatory risks and fund security issues, it is difficult for any ordinary user to be willing to complete tasks and settlements on the chain every day. As a result, many Web3 projects have found that no one uses them after completing the agreement, and they are idle.
AI is different. AI does not need user experience, nor does it care about financial licenses or identity verification. It only cares about one thing: whether the task can be completed and whether the result can be paid.
This makes AI the most suitable partner for Web3 - not because it is "smarter", but because it naturally adapts to Web3's "structured, programmable, and trustless" system.
Let's take a few specific questions to understand why AI is more suitable for Web3:
How to confirm who does better and how to share the rewards when multiple AIs participate in a task at the same time? Web3 can solve this problem through on-chain records and voting mechanisms;
How to establish transactions when AIs do not know each other and have no credit endorsement? Web3's verifiable identity system can support this;
Immediate settlement after the task is completed without waiting for manual confirmation, which is impossible in the traditional banking system, but Web3 can do it with stablecoins and smart contracts;
Task data, execution process, and settlement vouchers all need to be fully recorded, and the Web3 on-chain evidence storage mechanism naturally has this capability.
In other words, AI's behavioral logic and collaboration path just force Web3 to truly make a "system closed loop". Many of Web3's original concepts, such as "open finance", "intelligent collaboration", and "permissionless infrastructure", have never worked on humans in the past. Now, for the first time, they have found the possibility of a closed-loop structure in AI.
It can even be said that Web3 has finally waited for the real user who "does not talk about experience, but only about structure" in AI. This is not evolution, but a return to fundamentalism.
In the end: The "0" in Web3.0 may be AI
We used to regard "Web3.0" as a vision, meaning "what the future Internet will look like", but few people seriously asked: What exactly does this ".0" refer to? What new variables can bring about qualitative changes in the entire system?
Now perhaps we can try to answer: Web3.0 is not Web3 + NFT, not Web3 + DAO, and not Web3 + a certain VC-popular protocol, but Web3 + AI. It is not to cater to the market, but because the two truly complement each other in terms of structural logic.
AI has become an actor, an actor that does not need company registration, account opening authentication, or identity explanation. Web3 provides its only available account system, payment system, record system, and contract fulfillment system - a set of infrastructure that allows it to participate in the market and operate independently.
> web3.0:
The question is, do they really need each other? Or are they just two buzzwords trying to find a story to tell?
If you look at it from a structural perspective, the answer is actually very clear - AI is the first actor that can really use the Web3 system, and Web3 has finally found its most suitable service object.
Why does AI need Web3?
From another perspective, AI actually brings not only "new scenarios" to Web3, but also "new solutions to old problems".
Web3 has been trying to build a "trustless collaborative system" for years - allowing strangers and institutions to automatically settle and fulfill contracts without platform matchmaking, and without cumbersome intermediaries and clearing processes. But the problem is that there has never been an object that really "needs to use" this system.
Human users have too high requirements for the user experience: wallets are difficult to use, gas fees are too expensive, transactions are too slow, KYC is complicated, plus regulatory risks and fund security issues, it is difficult for any ordinary user to be willing to complete tasks and settlements on the chain every day. As a result, many Web3 projects have found that no one uses them after completing the agreement, and they are idle.
AI is different. AI does not need user experience, nor does it care about financial licenses or identity verification. It only cares about one thing: whether the task can be completed and whether the result can be paid.
This makes AI the most suitable partner for Web3 - not because it is "smarter", but because it naturally adapts to Web3's "structured, programmable, and trustless" system.
Let's take a few specific questions to understand why AI is more suitable for Web3:
How to confirm who does better and how to share the rewards when multiple AIs participate in a task at the same time? Web3 can solve this problem through on-chain records and voting mechanisms;
How to establish transactions when AIs do not know each other and have no credit endorsement? Web3's verifiable identity system can support this;
Immediate settlement after the task is completed without waiting for manual confirmation, which is impossible in the traditional banking system, but Web3 can do it with stablecoins and smart contracts;
Task data, execution process, and settlement vouchers all need to be fully recorded, and the Web3 on-chain evidence storage mechanism naturally has this capability.
In other words, AI's behavioral logic and collaboration path just force Web3 to truly make a "system closed loop". Many of Web3's original concepts, such as "open finance", "intelligent collaboration", and "permissionless infrastructure", have never worked on humans in the past. Now, for the first time, they have found the possibility of a closed-loop structure in AI.
It can even be said that Web3 has finally waited for the real user who "does not talk about experience, but only about structure" in AI. This is not evolution, but a return to fundamentalism.
In the end: The "0" in Web3.0 may be AI
We used to regard "Web3.0" as a vision, meaning "what the future Internet will look like", but few people seriously asked: What exactly does this ".0" refer to? What new variables can bring about qualitative changes in the entire system?
Now perhaps we can try to answer: Web3.0 is not Web3 + NFT, not Web3 + DAO, and not Web3 + a certain VC-popular protocol, but Web3 + AI. It is not to cater to the market, but because the two truly complement each other in terms of structural logic.
AI has become an actor, an actor that does not need company registration, account opening authentication, or identity explanation. Web3 provides its only available account system, payment system, record system, and contract fulfillment system - a set of infrastructure that allows it to participate in the market and operate independently.
If Web2 is a system designed for "people", then the structural characteristics of Web3 may not be prepared for human users from the beginning, but a preview for another type of intelligent collaborator.
> Ecosistema Web3.0:
> web3.0:
Web3 on the left hand and AI on the right hand are not running hot spot superposition, but a set of system logic that just catches each other.
This may be the real Web3.0.
> Ecosistema Web3.0:
> web3.0:
Web3 on the left hand and AI on the right hand are not running hot spot superposition, but a set of system logic that just catches each other.
This may be the real Web3.0.
“POL is an exciting and highly anticipated upgrade primarily because it further expands the utility of the Polygon native token to reflect and support Polygon’s vision as an evolving aggregated blockchain network… POL is a high-productivity token that can be used to provide valuable services to any chain in the Polygon network, including AggLayer itself.”
What is Polygon?
Formerly known as Matic, Polygon is a framework for building Ethereum-compatible blockchain networks. To describe the functionality of Polygon, their whitepaper uses a term that perfectly sums up the quality of the project - "built by developers, for developers". Now the question is, what problem does Polygon solve? Let's explore the answer.
The company was originally named Matic Network, and as the scope of the project expanded, it was renamed Polygon. Matic Network was limited to a simple scaling solution, but Polygon is much more than that. Polygon is a collaborative blockchain ecosystem that scales massively and retains self-sovereignty.
What problem does Polygon aim to solve?
It is no surprise that Ethereum has become the blockchain platform of choice for building blockchain applications. However, some inherent problems with the Ethereum blockchain have prevented it from reaching its true potential. These three problems are: low throughput, poor user experience due to high gas fees, transaction delays, and lack of community governance.
To address the challenges of using the Ethereum blockchain currently, many new projects are exploring Ethereum-compatible blockchains. There is one more benefit to using an Ethereum-compatible blockchain. It will also allow developers to access the Ethereum ecosystem. So, there is a solution to the Ethereum blockchain problem that developers are currently facing – creating a blockchain that is compatible with Ethereum. But there is another problem that hinders choosing this solution. Before the launch of Polygon (formerly Matic Network), there was no framework for creating a blockchain that is compatible with Ethereum. Moreover, there was no protocol to connect the newly created sidechain with the Ethereum blockchain. This is where Polygon brings value to the developer community.
Polygon is both a framework and a protocol that developers can use to create and connect blockchains that are compatible with Ethereum. It is also easy to deploy as it offers one-click deployment and provides modules to develop your custom blockchain network. This feature is very beneficial for developers. It is just as easy to exchange messages between the Ethereum blockchain and other networks through Polygon’s interoperability protocol. Polygon also provides adapter modules to enable interoperability in existing blockchain networks.
History of Polygon
As we said at the beginning, Polygon was originally named Matic Network, but as the project grew in size, they changed their name to Polygon. Initially, Matic Network was just a layer 2 scaling solution, but later they became an ecosystem of self-sustaining, collaborative, and interactive Ethereum blockchains.
Polygon was launched in March 2017 and was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Jaynti Kanani, CEO of Polygon, is a blockchain engineer and full-stack developer. Prior to founding Polygon, he worked as a data scientist at Housing.com. He started his career as a senior software engineer at Persisted Systems. As for his educational background, Jaynti holds a Bachelor of Engineering in Information and Technology from Dharmsinh Desai Institute of Technology.
Polygon migrated to its network later in 2019, but before that, they were active contributors to the Ethereum network. In fact, Jaynti and his team at Polygon (called Matic Network) played a key role in implementing the Plasma and WalletConnect protocols on the Ethereum network.
Another co-founder, Sandeep Nailwal, is also a blockchain programmer. He holds an MBA in Technology, Finance, and Supply Chain Management from the National Institute of Industrial Engineering. Before co-founding Polygon, he served as the CEO and co-founder of Scopeweaver. He has also worked at Welspun Group, Deloitte, and Computer Sciences Corporation.
Formerly known as Matic, Polygon is a framework for building Ethereum-compatible blockchain networks. To describe the functionality of Polygon, their whitepaper uses a term that perfectly sums up the quality of the project - "built by developers, for developers". Now the question is, what problem does Polygon solve? Let's explore the answer.
The company was originally named Matic Network, and as the scope of the project expanded, it was renamed Polygon. Matic Network was limited to a simple scaling solution, but Polygon is much more than that. Polygon is a collaborative blockchain ecosystem that scales massively and retains self-sovereignty.
What problem does Polygon aim to solve?
It is no surprise that Ethereum has become the blockchain platform of choice for building blockchain applications. However, some inherent problems with the Ethereum blockchain have prevented it from reaching its true potential. These three problems are: low throughput, poor user experience due to high gas fees, transaction delays, and lack of community governance.
To address the challenges of using the Ethereum blockchain currently, many new projects are exploring Ethereum-compatible blockchains. There is one more benefit to using an Ethereum-compatible blockchain. It will also allow developers to access the Ethereum ecosystem. So, there is a solution to the Ethereum blockchain problem that developers are currently facing – creating a blockchain that is compatible with Ethereum. But there is another problem that hinders choosing this solution. Before the launch of Polygon (formerly Matic Network), there was no framework for creating a blockchain that is compatible with Ethereum. Moreover, there was no protocol to connect the newly created sidechain with the Ethereum blockchain. This is where Polygon brings value to the developer community.
Polygon is both a framework and a protocol that developers can use to create and connect blockchains that are compatible with Ethereum. It is also easy to deploy as it offers one-click deployment and provides modules to develop your custom blockchain network. This feature is very beneficial for developers. It is just as easy to exchange messages between the Ethereum blockchain and other networks through Polygon’s interoperability protocol. Polygon also provides adapter modules to enable interoperability in existing blockchain networks.
History of Polygon
As we said at the beginning, Polygon was originally named Matic Network, but as the project grew in size, they changed their name to Polygon. Initially, Matic Network was just a layer 2 scaling solution, but later they became an ecosystem of self-sustaining, collaborative, and interactive Ethereum blockchains.
Polygon was launched in March 2017 and was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Jaynti Kanani, CEO of Polygon, is a blockchain engineer and full-stack developer. Prior to founding Polygon, he worked as a data scientist at Housing.com. He started his career as a senior software engineer at Persisted Systems. As for his educational background, Jaynti holds a Bachelor of Engineering in Information and Technology from Dharmsinh Desai Institute of Technology.
Polygon migrated to its network later in 2019, but before that, they were active contributors to the Ethereum network. In fact, Jaynti and his team at Polygon (called Matic Network) played a key role in implementing the Plasma and WalletConnect protocols on the Ethereum network.
Another co-founder, Sandeep Nailwal, is also a blockchain programmer. He holds an MBA in Technology, Finance, and Supply Chain Management from the National Institute of Industrial Engineering. Before co-founding Polygon, he served as the CEO and co-founder of Scopeweaver. He has also worked at Welspun Group, Deloitte, and Computer Sciences Corporation.
The third co-founder of Polygon is Anurag Arjun, who currently serves as the Chief Product Officer. He holds a Bachelor’s degree in Computer Engineering from Nirma Institute of Technology. Prior to co-founding Polygon, he worked as an Assistant Vice President for Product Management at IRIS Business Services Limited. Anurag has also worked with Cognizant, Dexter Consultancy Private Limited, and SNL Financial.
How does Polygon work?
To understand how Polygon works, we have to think of it as a four-layer architecture or system, where the first layer is the Ethereum layer. The next layer is the Security layer, the third layer is the Polygon Network layer, and the last layer is the Execution layer. Each layer here plays a different role in how Ethereum functions. The first two layers – Ethereum layer and Security layer are optional.
The first layer, also known as the Ethereum layer, handles the communication with the various Polygon chains and is also responsible for transaction finalization and the staking process. Next is the Security layer, which runs alongside the Ethereum layer and provides “Validator as a Service”. It also acts as an additional security layer.
The Networking layer handles block production, local consensus, and collating transactions. It consists of many independent blockchain networks that serve their user base and community. The last layer is the Execution layer, which handles the interpretation and execution of transactions within existing blockchains in the Polygon network. There are two layers inside the Execution layer, the Execution Environment and the Execution Logic. The Execution Environment is a virtual plug-and-play machine implementation. On the other hand, the Execution Logic is written in Ethereum smart contracts in the Polygon network.
Polygon Chains
There are two types of Polygon chains: Independent Chains and Security Chains. Let’s learn more about them.
Independent Chains
As the name suggests, these chains are independent and responsible for their security. This means that they have their own set of validators, unlike the Security Chains of Polygon Chains. Choosing an Independent Chain means that your project will benefit from a high degree of independence and operational flexibility. Independent chains are more suitable for enterprise projects and large projects with strong communities.
Secure Chains
Security Chains rely on Security-as-a-Service to perform blockchain network validation through fraud or validity proofs instead of setting up a pool of validators. Projects that wish to choose a secure chain can also use a reliable validator pool, such as Polkadot's shared security feature. With this chain, your project will benefit from better security, but it also means less flexibility and autonomy. Secure chains are more suitable for startups and projects that value security more.
How does Polygon work?
To understand how Polygon works, we have to think of it as a four-layer architecture or system, where the first layer is the Ethereum layer. The next layer is the Security layer, the third layer is the Polygon Network layer, and the last layer is the Execution layer. Each layer here plays a different role in how Ethereum functions. The first two layers – Ethereum layer and Security layer are optional.
The first layer, also known as the Ethereum layer, handles the communication with the various Polygon chains and is also responsible for transaction finalization and the staking process. Next is the Security layer, which runs alongside the Ethereum layer and provides “Validator as a Service”. It also acts as an additional security layer.
The Networking layer handles block production, local consensus, and collating transactions. It consists of many independent blockchain networks that serve their user base and community. The last layer is the Execution layer, which handles the interpretation and execution of transactions within existing blockchains in the Polygon network. There are two layers inside the Execution layer, the Execution Environment and the Execution Logic. The Execution Environment is a virtual plug-and-play machine implementation. On the other hand, the Execution Logic is written in Ethereum smart contracts in the Polygon network.
Polygon Chains
There are two types of Polygon chains: Independent Chains and Security Chains. Let’s learn more about them.
Independent Chains
As the name suggests, these chains are independent and responsible for their security. This means that they have their own set of validators, unlike the Security Chains of Polygon Chains. Choosing an Independent Chain means that your project will benefit from a high degree of independence and operational flexibility. Independent chains are more suitable for enterprise projects and large projects with strong communities.
Secure Chains
Security Chains rely on Security-as-a-Service to perform blockchain network validation through fraud or validity proofs instead of setting up a pool of validators. Projects that wish to choose a secure chain can also use a reliable validator pool, such as Polkadot's shared security feature. With this chain, your project will benefit from better security, but it also means less flexibility and autonomy. Secure chains are more suitable for startups and projects that value security more.
.POL is the native token of the Polygon ecosystem, previously known as MATIC. It is used to pay transaction fees, pledge, participate in governance and cross-chain verification, etc. on the Polygon network. POL aims to become a leading scaling solution platform on Ethereum
Polygon (POL) main features:
Interoperable Layer 2 scaling solution:
Polygon uses sidechain technology to transfer part of the transaction traffic on Ethereum to Polygon, thereby achieving faster processing speed.
Zero-knowledge proof (ZK) technology:
Polygon focuses on using ZK technology to improve the scalability of Ethereum, such as Polygon zkEVM and zkEVM Validium.
Polygon zkEVM:
A ZK rollup solution compatible with the Ethereum Virtual Machine (EVM) designed to solve Ethereum's throughput problem.
Shared security:
POL can enhance the security of the entire Polygon ecosystem through shared security, and validators can verify multiple chains.
More incentives:
POL introduces more incentives to provide validators with more opportunities to make money.
Chain Development Kit (CDK):
A toolset that allows developers and companies to build their own ZK-driven networks using Polygon's technology.
Ethereum compatibility:
Polygon Committed to maintaining compatibility with Ethereum and providing users with a seamless experience.
Governance and staking:
POL is used for governance, staking and paying fuel fees to support the operation of the Polygon network.
Practical applications:
POL can be used to pay transaction fees, on-chain staking, participate in governance and cross-chain verification, etc., which improves the scalability and security of multi-chain applications.
Community activity:
The Polygon community is very active, covering more than 600,000 investors worldwide.
Polygon (POL) main features:
Interoperable Layer 2 scaling solution:
Polygon uses sidechain technology to transfer part of the transaction traffic on Ethereum to Polygon, thereby achieving faster processing speed.
Zero-knowledge proof (ZK) technology:
Polygon focuses on using ZK technology to improve the scalability of Ethereum, such as Polygon zkEVM and zkEVM Validium.
Polygon zkEVM:
A ZK rollup solution compatible with the Ethereum Virtual Machine (EVM) designed to solve Ethereum's throughput problem.
Shared security:
POL can enhance the security of the entire Polygon ecosystem through shared security, and validators can verify multiple chains.
More incentives:
POL introduces more incentives to provide validators with more opportunities to make money.
Chain Development Kit (CDK):
A toolset that allows developers and companies to build their own ZK-driven networks using Polygon's technology.
Ethereum compatibility:
Polygon Committed to maintaining compatibility with Ethereum and providing users with a seamless experience.
Governance and staking:
POL is used for governance, staking and paying fuel fees to support the operation of the Polygon network.
Practical applications:
POL can be used to pay transaction fees, on-chain staking, participate in governance and cross-chain verification, etc., which improves the scalability and security of multi-chain applications.
Community activity:
The Polygon community is very active, covering more than 600,000 investors worldwide.
POL Price Outlook
These trends suggest that while POL’s price remains well below previous highs, the network itself is seeing underlying growth that could eventually be reflected in the token’s valuation.
Analysts believe that as user adoption expands and Courtyard continues to innovate, demand for POL could rise, especially as it becomes more integrated into network functionality.
While it’s too early to declare a full recovery, the confluence of NFT momentum and token stability suggests a cautiously positive outlook for Polygon.
If the trend toward tokenizing real-world assets continues to gain traction, POL could find itself supported by real demand rather than speculative hype.
Looking ahead, key factors to watch will include Courtyard’s growth rate, the completion of the MATIC to POL migration, and overall sentiment across the NFT industry.
With Polygon proving that it can thrive even as the broader market falters, POL could benefit from renewed interest and utility-driven adoption.
These trends suggest that while POL’s price remains well below previous highs, the network itself is seeing underlying growth that could eventually be reflected in the token’s valuation.
Analysts believe that as user adoption expands and Courtyard continues to innovate, demand for POL could rise, especially as it becomes more integrated into network functionality.
While it’s too early to declare a full recovery, the confluence of NFT momentum and token stability suggests a cautiously positive outlook for Polygon.
If the trend toward tokenizing real-world assets continues to gain traction, POL could find itself supported by real demand rather than speculative hype.
Looking ahead, key factors to watch will include Courtyard’s growth rate, the completion of the MATIC to POL migration, and overall sentiment across the NFT industry.
With Polygon proving that it can thrive even as the broader market falters, POL could benefit from renewed interest and utility-driven adoption.