Polygon – Ethereum’s Internet of blockchains, aims to transform Ethereum into a multi-chain ecosystem with secured Layer 2 chains and standalone chains.
Reportedly, Polygon’s is gaining increased adoption. Polygon is a powerful, easy-to-use framework which extends the scope of the Matic platform and transforms it into a swiss-army-knife for Ethereum scaling and infrastructure development.
The Matic token will be the only native token of the whole network. MATIC will be important when it comes to playing an increasingly important role primarily in securing the system and enabling governance.
Important to note that Matic Network expanded the tech scope and mission and by becoming Polygon — Ethereum’s Internet of Blockchains.
Also, all the existing Matic solutions and implementations, primarily Matic PoS Chain and Matic Plasma Chains, REMAIN FULLY FUNCTIONAL and will continue to be developed and grown as very important components of the Polygon ecosystem. Polygon just expanded the suite of solutions and no action was required from developers or end users.
Chumhum is a DeFi protocol on the MATIC Chain that supports not only lending and borrowing of digital assets, but also the generation of synthetic assets.
The main aim of Chumhum is to facilitate a better financial eco-system than what the contemporary centralized and decentralized platforms provide for.
The limitations of the already existing protocols: The major issue with already existing Finance Protocols based on the traditional finance system is that users go through multitude of steps to get a loan ranging from KYC processes to a credit history check.
After the KYC users have to wait for days or even a month to get the confirmation. Further, the centralized lender might dismiss the loan on an arbitrary basis. There are also possibilities of single point of attack in centralized platforms.
The DeFi has revolutionized the crypto space by introducing blockchain based products and services which are transparent, cryptographically secure, and not controlled by third-party authorities and decision-makers.
Away from traditional models DeFi also pose some problem. Most of the DeFi platforms are based on Ethereum which has scalability issues. Lack of scalability means slow and costly transactions, which leads to a poor user experience.
Also, these DeFi protocols do not have the high market cap which might attract more users or eventually put them on top of the chain. There is also less-than-obvious issue of some of these platforms being not completely decentralized mostly at the beginning.
Chumhum’s Solution are looking to address these problems by facilitating an environment where the traditional approach is woven into a synthetic stablecoin generation process. Users will be able to enjoy high-speed transactions with minimal transaction costs on the MATIC Chain.
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