Polygon is a Layer-2 project of the Ethereum blockchain, which helps scale and improve existing problems on the Ethereum network, such as slow transaction speed, limited scalability, and high fees. Polygon combines (1) the Plasma Framework and (2) the Proof-of-stake model, enabling smart contracts to be executed quickly, scalable, and autonomously. Commercially, Polygon’s sidechains are structurally designed to support many of the decentralized finance (DeFi) protocols available in the Ethereum ecosystem.
MATIC is the native token of Polygon, used as a payment currency among users operating in the Polygon ecosystem. Transaction fees on Polygon sidechains are also paid in MATIC tokens.