The Tether cryptocurrency itself is built on the basis of the open source Omni Layer protocol, which interacts with the blockchain and provides the issuance and redemption of bitcoin-based cryptocurrency tokens. It is worth noting that tokens are issued only in the amount the equivalent of which was credited to the company’s account.
Tether uses an alternative to the Proof of Solvency method – Proof of Reserves. The process is trivial: the amount of tokens is verified on the bitcoin blockchain using publicly available tools, and the corresponding amount of dollar reserves is confirmed by bank accounts and periodic audits. The company regularly publishes the amount of funds on a separate website, and Taiwanese and American audit firms often conduct relevant checks.
From Matic Network to Polygon
Matic Network is a platform for scaling Ethereum. This means that Matic is not a separate blockchain – rather, it is a superstructure on top of Ethereum, which allows users to access the functionality of the second cryptocurrency.
The main function of the usdc to matic scalability problem. The latter remains the main platform for creating decentralized applications, but the implementation on the web is, to put it mildly, not ideal. As soon as a DApp became popular, a large number of operations overwhelmed Ethereum, which led to a churn of users.
Matic Network offered a second level solution – instead of conducting transactions directly on the Ethereum network, they were first processed by Matic himself. In 2021, they rebranded the network – it became known as Polygon. It is now a platform for creating interconnected second-tier blockchain networks. In other words, using the Polygon SDK, anyone can write their own blockchain for specific purposes.
Who created Polygon and when?
The project has four co-founders:
- Gainti Kanani, CEO of Polygon Network – data processing and analysis specialist;
- Executive Director Sandip Nailwal – Management Consultant;
- Director of Production Control Department Anurag Arjun – Product Manager;
Mihailo Bjeli is a developer.
The creators see Polygon as a solution to the scalability and efficiency of blockchain networks.
The Polygon team has created a Plasma Chains scaling model and Ethereum Matic PoS Chain sidechain based on Proof-of-Stake (PoS). Over time, this sidechain has become a popular scalability option for various applications.
Polygon Perspectives (MATIC)
It is quite difficult to assess the possibilities of the movement of the Polygon token rate – hardly anyone in their forecast of the MATIC cryptocurrency for 2021 assumed such a rapid growth in crypto anonymous exchange.
Wallet Investor is more optimistic in its forecast: the portal believes that in a year the price of MATIC could reach $ 4,122. In five years, the value of the cryptocurrency will reach $ 16,135, Wallet Investor believes.
Acceptance level. Crypto investors use USDT as a safe haven. Outside the crypto markets, it can be used as a common means of payment to buy and sell goods or pay for a subscription. For example, at the beginning of the year, Pornhub added Tether payments.
Cheap and fast transactions. On June 1, the platform integrated with the OMG Network Plasma (OMG) sidechain of the Ethereum blockchain. The OMG-powered Tether network is available through the Bitfinex exchange, where traders can now react faster to market changes and save on trading fees.
Capitalization. On May 22, 2020, Tether (USDT) became the third largest cryptocurrency by market capitalization, surpassing Ripple (XRP).