Polygon (Matic) – this is what the future of blockchain looks like!

Maciej Zieliński

26 Aug 2021
Polygon (Matic) – this is what the future of blockchain looks like!

Polygon is setting new standards for scaling solutions. A protocol created to build and connect Ethereum-compatible networks shows what the future of blockchain could look like.

Polygon, formerly known as the Matic network, is one of the top-rated solutions using side-chains of the blockchain to provide faster and cheaper transactions on Ethereum. In many ways, it resembles other Layer 2 projects such as Avalanche and Cosmos, but according to its creators, it is much more efficient and secure. Practice seems to confirm this. 

What challenges Polygon is responding to?

Ethereum is the most widely used blockchain protocol, but it has a number of limitations, including:

  • High transaction costs 
  • Low throughput 
  • Problematic UX  

Many projects are now exploring the use of Ethereum-compatible blockchains as a way to mitigate these limitations while leveraging the benefits of the entire ecosystem. However, the market still lacks specialized frameworks to build such blockchains or a protocol to connect them. According to the developers of the Matic network, this causes fragmentation of ecosystems and brings with it serious development challenges.

Solutions

Polygon addresses these issues by implementing solutions such as:

  • One-click deployment of turnkey blockchain networks
  • A growing set of modules for creating custom networks
  • An interoperability protocol for exchanging arbitrary data with Ethereum and other blockchain networks
  • “Security as a service”
  • Adapter modules to enable interoperability of existing blockchain networks

Polygon basics

As a Layer 2 solution, Polygon addresses the diverse needs of developers by providing tools to create scalable dApps that prioritize security, modularity and UX. This is made possible through a protocol architecture consisting of Proof of Stake (PoS) Commit Chains and More Viable Plasma (MoreVP).

In a nutshell, the operation of the Matic network relies on Commit Chains, which are transaction networks that run on the main blockchain, Ethereum. Commit Chains combine transactions into batches, which are then confirmed in bulk before returning the data to Ethereum. 

polygon
Source: polygon.technology

DeFi moves to Polygon

Even the drop in Ethereum gas fees is not stopping more users and developers of decentralized finance from migrating to Polygon. Thanks to the low transaction price and speed of creating more blocks, the number of DeFi projects choosing to use it is growing rapidly. Among them are already Aave and Sushi Swap. 

"There are advantages to using Layer 2 solutions, especially Polygon, because with DeFi, if the transaction cost is very high, for small players and casual speculators, participation just doesn't make sense," Sameep Singhania, founder of the QuickSwap exchange based on the protocol, said in an interview with CoinDesk. "That's why I think it's a good move that DeFi is moving to Polygon.".

Polygon and Sushi Swap

How much the Matic network has grown in importance on the DeFi market is perfectly illustrated by the aforementioned Sushi Swap. According to DappRadar, the popular market maker in June this year had as many as 15 thousand registered wallets on Polygon and only a little over 4 thousand on Ethereum. This means that many more Sushi Swap users are currently on the Matic network than on Ethereum.

A similar relationship is observed on the decentralized exchange Aave, where the average daily transaction volume on Polygon oscillates around $6.75 million, significantly exceeding the $5 million on Ethereum. Coindesk reports that Aave began working with Polygon in March of this year to avoid the high transaction costs on Ethereum.

Token MATIC

The protocol has its own token - MATIC, whose value has managed to increase by 9000% for a year. It is currently the 15th cryptocurrency in terms of capitalization.

"Layer 2 solutions are a catalyst for growth and new users" said Mira Christanto, an analyst at Messari, a blockchain market research firm "Ethereum gas fees have been prohibitive for many users. Polygon and other Layer 2 solutions are precursors to demand for Ethereum once the gas fee hurdle is removed".

Tagi

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What is Account Abstraction?

Karolina

10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.

Conclusion

Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial

Karolina

03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.

Prerequisites

Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai

RPC URL: https://rpc.gnosischain.com

ChainID: 100

Symbol: XDAI

Block Explorer URL: https://gnosisscan.io

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.

Conclusion

By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon. 

Tagi