With the rapid development of blockchain and Web3 technologies, both users and developers are increasingly demanding infrastructure that delivers higher performance, lower costs, and strongerWith the rapid development of blockchain and Web3 technologies, both users and developers are increasingly demanding infrastructure that delivers higher performance, lower costs, and stronger

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What is Polygon (POL)? The Blockchain Foundation for Global Payments and Real-World Assets

Sep 29, 2025MEXC

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With the rapid development of blockchain and Web3 technologies, both users and developers are increasingly demanding infrastructure that delivers higher performance, lower costs, and stronger scalability. As one of the most important scaling solutions in the Ethereum ecosystem, Polygon (POL) is evolving through continuous technological upgrades and token improvements to become the preferred blockchain infrastructure for global payments and Real-World Assets (RWA).

1. What is Polygon?

Polygon is a multi-chain scaling ecosystem built around Ethereum, designed to provide users and developers with a low-cost, high-speed Web3 experience while utilizing Ethereum's security. Originally launched in 2017 as Matic Network, it rebranded to Polygon in 2021. With its modular architecture and EVM compatibility, Polygon has grown into a leading infrastructure supporting millions of users and thousands of decentralized applications (dApps).

The Polygon founding team consists of entrepreneurs focused on Ethereum scalability, with Sandeep Nailwal serving as one of the co-founders and currently CEO of the Polygon Foundation. Under his leadership, Polygon has evolved from an early sidechain solution into one of the world’s most active blockchain networks, continually advancing Web3 infrastructure. To align with its long-term vision as an Aggregated Network (AggLayer), the Polygon community completed a token upgrade from MATIC to POL. The upgraded POL token is not only the native gas and staking token of Polygon PoS but is also designed to play a broader role within the AggLayer network, including participation in value capture and incentive distribution, with specific mechanisms determined by future community consensus.

Polygon's advantages include:

High Performance: Capable of large-scale parallel processing with TPS in the millions.
Low Cost: Transaction fees are far lower than on Ethereum mainnet.
Security: Shares Ethereum's security, protecting assets and applications.

2. Polygon Core Technology and Mechanisms

2.1 Layer-2 Architecture

Polygon operates alongside Ethereum, processing transactions "off-chain" while periodically submitting transaction states back to Ethereum mainnet. This achieves both efficiency and security.

2.2 Consensus Mechanism and Token Role

Polygon employs a modified Proof-of-Stake (PoS) consensus. Network participants stake POL tokens (Polygon's native token) to validate transactions and earn rewards. POL is an ERC-20 token used for transaction fees, governance, and network security.

2.3 Cross-Chain Bridge Transparency Research

A study by Cornell University shows Ethereum–Polygon cross-chain transactions are highly transparent: deposit traceability reached 99.65%, and withdrawal traceability 92.78%. This highlights the verifiability of cross-chain bridges and provides a foundation for improving both efficiency and security in the future.

3. POL Token Upgrade and Significance

3.1 Background

After extensive discussion and broad community consensus, the Polygon community officially upgraded the original MATIC token to POL (Polygon Ecosystem Token) on September 4, 2024. Since then, POL has served as the native gas and staking token of the Polygon PoS network. This upgrade was more than a simple token rebranding. It marked a key milestone in Polygon's evolution toward a more efficient, multi-chain ecosystem. According to a statement published on Polygon's official blog on September 3, 2025, nearly a year after the MATIC to POL upgrade, 99% of MATIC had successfully migrated to POL, and all transactions on the Polygon PoS network are now executed using POL as the gas token.

3.2 Upgrade Process

1:1 swap: MATIC holders receive POL at a 1:1 ratio.
Automatic migration: Users on Polygon PoS do not need to take any action. Migration on Ethereum and other networks can be completed through the official Polygon portal or exchanges.

3.3 POL's New Positioning: The Third-Generation "Hyperproductive" Token

POL is defined as a "Hyperproductive" token, meaning:

Cross-chain staking and validation: POL secures not only the Polygon PoS network but also multiple chains (including AggLayer sovereign chains), generating diversified rewards.
Expanded utility and incentives: Used for transaction fees, validator incentives, and more, increasing its utility and earning potential.
Governance and community empowerment: Holders participate in governance and network evolution. A community treasury supports ecosystem growth.
Sustainable tokenomics: Staking rewards, token burns, and ecosystem airdrops balance long-term value and enhance participation.

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4. Polygon's Technology Roadmap

Polygon's latest development blueprint, called Gigagas, aims to achieve 100,000 TPS and establish Polygon as the default fast, low-fee, secure, and scalable payment network. Gigagas is more than just a performance plan. It's a strategic step toward building infrastructure for real-world payments and asset settlement. As the first milestone of Gigagas, Polygon completed the Heimdall upgrade, one of the most complex technical upgrades in the crypto industry:

Faster transactions: Transactions finalize in under 5 seconds.
Improved payment efficiency: Stablecoins can be used for daily payments.
Optimized asset settlement: Tokenized asset settlements match traditional finance speeds.

5. Polygon's Growth: Milestones and Ecosystem Expansion

Polygon’s journey is marked by milestones and partnerships:

Rebrand & expansion vision: From Matic Network to Polygon in 2021, launching its multi-chain scaling vision.

ZK scalability boost: Acquired Hermez and Mir to enhance zk-Rollup capabilities.

Funding & ecosystem support: Raised $450M in 2022, followed by grants to foster ecosystem growth.

Enterprise & industry adoption: Partnerships with Disney, Google Cloud, Starbucks, Mastercard, and Jio (India) to drive real-world applications.

Governance upgrades: Polygon 2.0 introduced enhanced community governance structures.

6. Conclusion

Polygon is evolving from an Ethereum scaling solution into a global value layer. With the POL upgrade, Gigagas roadmap, Heimdall upgrade, and breakthroughs in AggLayer and zk technologies, Polygon delivers a fast, low-cost, and secure on-chain experience while driving mainstream adoption of stablecoins, real-world assets, and global payments.