What are the Use Cases of Polygon?

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The developments happening in the login and cryptocurrency market have both provided us with lots of benefits and have given rise to a few challenges as well. The decentralized nature of Blockchain technology helped many businesses around the globe become more efficient and fast. On the other hand, cryptocurrencies have done a lot in the field of decentralized finance.

Due to the increased popularity of Blockchain and cryptocurrency, the number of transactions on these platforms has increased considerably. This has given rise to many problems and has created space for solutions like Polygon to ease the process of scalability.

Whenever a Blockchain network is busy, it will charge you high fees to balance demand and supply. In order to solve these issues, Layer 2 has been introduced. Polygon Network uses Layer 2 interface to implement a unique solution.

In this article, we will take a look at some of the best use cases of the Polygon network and how it might help you as well. First, let’s see what Layer 2 solutions actually are.

Layer 2 Solutions

If you want to understand how the polygon network works, you should first take a look at layer 2 solutions. Doing this will make it easier for you to understand how a Polygon actually works. Layer 2 simply means that a parallel Blockchain network runs with the main network. This promotes processing every transaction outside the main Blockchain network. By decreasing congestion on the main Blockchain, this system can help reduce transaction costs and improve the transaction speed manifolds.

Solutions using Layer 2 technology can easily make both of the networks communicate with each other easily. The parallel Blockchain can also access data from the main Blockchain in order to process transactions and provide information. With this method, users can experience significantly decreased transaction costs while enjoying the same security benefits as the primary Ethereum blockchain.

Due to the unique nature of the Polygon network, there are many use cases for it. That is because Ethereum is one of the most used decentralized platforms for development. It provides its developers with lots of tools and gives them innovative solutions like the Polygon network itself.

However, since Ethereum is being used by every developer looking to develop DeFi applications, the whole thing has become a problem. The number of transactions on the Ethereum Blockchain has increased, and this causes the whole system to clog up and slow down the transactions significantly. Due to its very nature, Ethereum charges high transaction fees when the network is being used for lots of transactions, making it accessible to only the biggest investors. This is the main reason why layer 2 solutions like the polygon network are so important for the future of decentralized applications.

How Does Polygon Network Work?

Knowing more about the working principles of Polygon can help you determine the best use cases for this platform. It a basically a proof-of-stake system consisting of nodes and everything else like any other blockchain system.

Let’s take a look at the key components of the Polygon blockchain.


The consensus system used in the Polygon network is Proof of Stake. This system uses nodes to validate transactions happening on the blockchain and makes blocks with transaction data. Proof of Stake is much better as compared to proof of work consensus. This type of system uses much less power as compared to its alternative and demands less processing power as well.

When we’re talking about proof of stake, people staking their tokens get to validate whole blocks of transactions in exchange for rewards. In the case of the Polygon Network, stalkers and rewarded with MATIC tokens. This is a good incentive for any user who might be looking to earn passive income by staking his tokens on the blockchain.

There are different nodes on the Polygon blockchain, and every node is made of a bunch of stalkers willing to process transactions. Validator nodes are selected through a decentralized system, and they are allowed to process transactions on the blockchain. Once a node processes a transaction, it is provided with rewards in the shape of a share of the transaction fee. Since new MATIC tokens are also minted through this process, the validator nodes also get those tokens as a reward. However, if a node tries to indulge in illegal activities, the blockchain can also penalize it and confiscate all of the staked tokens from the investors of that node.

You can also receive MATIC tokens from other people to verify transactions. Your power in the consensus process depends directly on the number of tokens you’ve staked. A delegator can also receive rewards, but they are less compared to validators.

Polygon Bridge

The Polygon bridge is the main feature of Polygon, and it bridges the gap between both the blockchains. This bridge also uses proof of stake to swiftly transfer assets from one blockchain to the other. This is how the ETH main chain and the side chain work together.

The whole network relies on this bridge for transferring assets. These assets are used to get in touch with all the apps and DeFi platforms attached to the Polygon network.

Even though the polygon bridge charges a transaction fee, it is still cheaper as compared to the fees charged by the ETH blockchain. This is how the Polygon network works.

Use Cases of Polygon

By taking a look at the working principles of the Polygon network, you might have already thought of its real potential. Although the main feature of Polygon is providing Blockchain transactions with lower fees, most of its use cases are centered around scalability it provides businesses with. When it comes to scalability, lots of Blockchain-related platforms can use Polygon to improve their functionality significantly.

You can get all the features of the main Ethereum Blockchain, with the help of Polygon, with faster transactions and low transaction fees. In addition to being a scaling solution, the Polygon network can also support complex Blockchain applications. There are lots of solutions that can be made possible by using the Polygon network.

With the help of Polygon and all the features it provides, we can actually start making Ethereum-based solutions without worrying about transaction fees or speed. You can also use the Polygon network to mint MATIC tokens and create NFTs. Moreover, this network has already proved its worth by providing successful solutions in lots of Blockchain based projects.

If you want to create a decentralized finance application, you can also use the Polygon Blockchain rather than the Ethereum Blockchain as the basic Blockchain of your system. For example, platforms like OpenSea already allow their users to select Polygon as their main Blockchain. This provides their users with lots of benefits while retaining the functionality of the Ethereum Blockchain intact.

Here are some of the best areas in which the Polygon network can be used.

Decentralized Finance

As anticipated by the experts, the Polygon network will also have a big impact on the decentralized finance services market. For now, Polygon is being used by merchants on the platform to assess the credit scores of clients they’re working with.  The Polygon network allows merchants to easily access the transaction history of a person to calculate their credit score as well.

Although the platform has just started, it has already grown its TVL to over $5 billion, and that’s in the DeFi sector only. Since Polygon is actually being used in the DeFi sector, investors can easily assess its potential and invest in it with ease. Since its implementation process is unique, Polygon has already started competing with Ethereum and Binance.

Due to the active usage of Polygon in the DeFi and crypto industry, the Polygon network has grown in size significantly.

Other platforms like Aave are also opting to use the network due to its efficiency. Aave alone has locked more than $1 billion on the Polygon network and supports around 10000 users through it. Since the Polygon network can help developers and users work across different blockchains easily, it is quickly becoming one of the most popular names in the DeFi industry.


Just like most other DeFi projects, Polygon also stepped in to make the transition of gaming into the web three infrastructure in 2021. Developers willing to use the platform to develop games are incentivized by the Polygon network. The network drives this support from its community, marketing channels, and investors. Due to these guaranteed benefits, Polygon has also become a recognized name in the field of blockchain-based gaming.

The scaling capability of the network is the main reason why it is one of the best choices for game development. Since it provides top speed in transactions, it can be used to improve blockchain-based games significantly.

Currently, blockchain games still have lot to improve, and they are behind PC games by a huge margin due to their high loading times and slow transaction speed. However, the polygon network has the ability to resolve these problems by providing seamlessly fast transactions and lots of additional support.

When new games are made by using the polygon network, they’ll be easier to play and interact with. Before this happened, blockchain-based gaming was progressing slowly with the help of NFTs and traditionally slow blockchains.

By allowing fast NFT transactions, the Polygon network can become a permanent part of the bright future of blockchain gaming. The network has all the features a blockchain needs to satisfy the needs of blockchain gamers.

Low transaction cost on the polygon network means you can trade NFTs with low fees as well. Seeing this, many blockchains and NFT trading platforms have started using polygon to transfer the benefit to their users. Some examples in this domain are Aave, Cometh, Zed Run, and Neon District.

Digital Payments

Digital payments are another important feature of the polygon network. As we already mentioned, this network can easily speed up blockchain-based transactions because of its very nature. It can settle payments within seconds to improve the functionality of decentralized applications considerably.

Polygon uses the most advanced technology to make faster transactions possible. No matter what type of cryptocurrency you want to receive, Polygon can process the transaction instantly. The main focus of polygon is on revolutionizing digital payments for DeFi applications.

Any type of ERC-20 token can be easily transferred with the help of Polygon. Cross chain transfers are made possible by using a staking bridge. It can also incorporate fiat currency in the decentralized blockchain system to take advantage of the liquidity locked in the fiat system.

Non-Fungible Tokens

Supporting NFT trade is another big feature of the polygon network. The main benefit of using this blockchain for NFT transfers is the low fees it charges you. You can also trade NFTs through OpenSea by using this platform. Users are even allowed to create new fungible tokens and sell or buy them on the Polygon network. The native token of the polygon network is MATIC, and you can use it to pay for any transactions.

Other Uses

While Polygon uses layer 2 technology, it can do much more than you’d expect a standard layer 2 solution to do. It helps in interoperability, scaling, and transactions to benefit from the technology and techniques it introduces. In the case of decentralized exchanges, you can use the Polygon network to settle payments within seconds.

The speed polygon provides you with significantly improves your trading experience. Platforms like Quickswap have already shifted to polygon to benefit from the faster and more cost-effective blockchain transactions it provides. After incorporating Polygon, this platform and many others like this have seen a surge in their popularity and the number of transactions done on them.

Stablecoin markets like Curve finance have also shifted to the Polygon network. Due to its very features, Polygon has improved the functionality of these platforms significantly. It avoids slippage in stablecoin trading. The bridge developed and used by Polygon is probably the highlight feature of this platform. This cross-chain technology is designed to facilitate swaps and helps in scaling as well.

In order to safeguard your privacy, decentralized platforms get the transaction processed without giving away your key. Polygon can fit into this infrastructure seamlessly as well. You won’t have to worry about compliance when you’re using Polygon.

Benefits of Polygon For Ethereum

Contrary to the popular belief, Polygon is not competing with Ethereum. In fact, it is highly dependent on Ethereum and uses its technology to facilitate transactions. It enables fast transactions and low fees on the Ethereum Blockchain.

This way, lots of applications can be developed on the Ethereum Blockchain, without worrying about any of its shortcomings. While both the Polygon network and the Ethereum Blockchain are dependent on each other, Polygon is more dependent on Ethereum than Ethereum is on Polygon. That is because the polygon network is built on the Ethereum Blockchain.

The main problem Ethereum might have to face in this area is diluted growth. Since the polygon network gets every user that signs up for it, the growth of Ethereum can get halted in specific areas.

However, every polygon user is effectively an Ethereum user as well. When the Total Value Locked in the Ethereum blockchain increases, the whole ecosystem will benefit.

MATIC Vs ETH Layer 1

The Layer 2 interface might look like a complex thing at first. Layer 1 is the basic architecture on which the ETH blockchain was built. On the other hand, Layer 2 lies above the Layer 1 architecture.

Layer 2 based solutions are made to interact with the Layer 1 blockchain in an attempt to make transactions fast and swift. Polygon can help improve the whole ETH ecosystem even further.

Why Prefer Polygon Over ETH Layer 1

In the Ethereum blockchain, users try to get their transactions processed as soon as possible. When there are more transactions to be processed, more investors bid higher for their transactions. This causes the transaction amount to skyrocket whenever there are more transactions happening on the blockchain.

Polygon is far beyond just decreasing the transaction cost and increasing the transaction fees. It has the ability to link every blockchain-based solution and compound their benefits as well.


Although blockchain technology has helped make decentralized solutions possible, it has also given rise to a few problems. For example, since the Ethereum blockchain works on bids by investors who want their transactions to be processed in the next block, more transactions mean more network fees.

This is the main reason behind the introduction of the Polygon network. It is actually a blockchain that runs parallel to the main Ethereum Blockchain. With the help of its staking bridge, the polygon network provides less transaction time and fewer transaction fees. It does all of this while retaining the benefits of the Ethereum Blockchain intact.

The Polygon network is a layer 2 solution that can help connect lots of decentralized finance solutions easily to the Ethereum Blockchain.

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