Original Source Here
What are layer 2 solutions?
When talking about blockchain scaling solutions, they are usually divided into two layers: Layer-1 and Layer-2 solutions.
Layer-1 refers to scaling capabilities within the blockchain itself through novel consensus algorithms and increasing block limits. Layer-2 scaling solutions refer to off-chain solutions. They remove elements of processing power from the main blockchain before running them on the side-chains. This helps increase throughput on the main chain.
Layer 2 solutions, including Polygon, have recently gained popularity and are considered crucial for the mass adoption of cryptocurrencies.
The Polygon architecture consists of four different layers, each responsible for a set of functions and services used for different purposes.
The Ethereum layer is represented by a set of smart contracts implemented on the Ethereum network. They take care of the staking, the finality of transactions and the communication between different polygon chains and Ethereum.
The security layer runs in parallel with Ethereum and has a “validator-as-a-service” role that adds an extra layer of security to chains.
The network layer serves as a blockchain network ecosystem developed on Polygon. Each has its own community and is responsible for block creation and local consensus.
The execution layer is represented by Polygon’s EVM (Ethereum Virtual Machine implementation), which is used to execute smart contracts.
Polygon chains can communicate with Ethereum’s main chain as well as with each other, as Polygon enables arbitrary message-passing functionality. It helps spur a number of new use cases, including interoperable dApps and exchange of value between different platforms.
What makes Polygon so special?
Polygon is one of the most innovative projects aimed at improving blockchain scaling and interoperability. There are several key features that have contributed to the platform’s popularity and positive outlook from analysts.
Polygon is compatible with the Ethereum Virtual Machine, making it useful for those developing apps on Ethereum and programming in Solidity.
Polygon’s security model is optional. So there is no need to sacrifice flexibility for the sake of additional security when it is not needed.
Polygon claims to be flexible enough to incorporate various scalability solutions beyond Plasma Chains, including Optimistic Rollups and ZK Rollups.
MATIC Network forecast: will the price reach $10?
MATIC tokens are used for various purposes in the Polygon ecosystem, including paying gas fees and contributing to security through staking. MATIC proved to be one of the top-20 most liquid and largest cryptocurrencies by market cap.
When speculating on the future forecast of the MATIC coin, it is worth mentioning that the race for the first and most important interoperability solution is still on. Polygon’s competitors, Polkadot and Cosmos Stargate, are also working diligently to bring their solutions to market.
MATIC has been one of the most promising cryptocurrencies so far this year. Since the beginning of 2021, the MATIC coin price has risen from $0.01 on 1 January 2021 to an all-time high of $2.68 on 18 March.
Will the positive trend continue? Considering the short- to medium-term MATIC Coin 2021 forecast, traders should pay attention to several support and resistance levels.
Matic (Polygon) getting its fair share of attention lately as demand for their Layer 2 ecosystem surges; as shown on Defi-Pulse, the Polygon ecosystem now ranks as 4th in terms of TVL on Ethereum.
The Traders of Fatpigsignals can naturally expect the price to follow our trajectory, similarly, we can keep expecting the market cap to surge and wouldn’t be surprised if Matic/Polygon is a top 10 coin soon. For those looking to take a midterm hold position, you can allocate 1–2% of your portfolio to this. You can accumulate between 1- 2$ . As always , our bias is solely based on our research and consensus , please do your own due diligence before investing!
If you want to get more fundamental and technical analysis like this, join the Fatpigsignals Telegram group.
According to CoinPedia’s MATIC Network forecast, showed a strong tendency to break the higher levels at above $3.” Although a short-term setback from recent highs seems plausible, they predict that MATIC, spurred by increased investor attention, will reach new highs and climb to $10 by the end of 2021.
MATIC Coin Forecast 2021–2028
According to digitalcoinprice.com, MATIC is a profitable investment in 2021 and beyond. Thus, the value of MATIC token can reach up to $3.19 in 2021, $6.65 in 2025 and $9.84 in 2028.
Another analytical source, WalletInvestor, seems to have no doubts about whether MATIC coin is a “buy” or “sell”. It offers $5.50 as an average price target for the next 12 months and calls MATIC an “excellent” long-term investment. According to the MATIC Coin Forecast, its price will rise to $22.07 in five years.
I share more intimate thoughts in a monthly newsletter that you can check out here. Please let me know in a comment, and let’s build your crypto universe via Patreon. Join me on various social media platforms:
Trending AI/ML Article Identified & Digested via Granola by Ramsey Elbasheer; a Machine-Driven RSS Bot