Table of Contents
A blockchain is a secure, decentralized ledger system that records all cryptocurrency transactions with accuracy and precision. As you add blocks with a new set of records Blockchain keeps growing
The timestamp and transaction data includes the cryptographic hash of the previous block
As such, Bitcoin nodes use the blockchain to discern valid Bitcoin transactions from attempts to spend coins already used elsewhere.
Mining is how new Bitcoin and other cryptocurrencies is creating. Miners are rewarding with cryptocurrency for verifying and committing transactions to the blockchain digital ledger. Mining Ethereum is a profitable venture, with miners awarded depending on their contribution instead of the total amount of blocks mined.
The response to this inquiry changes depending on the digital currency. Bitcoin, which depends on its blockchain system and not anything else, differs from Ethereum since it has a backbone of its own blockchain network and Miners use Ether to pay transaction costs. Ripple stands out in that it depends on an accord record instead of a blockchain and XRP supports it with payment for transaction fees being made through XRP.
Unleash the full power of cryptocurrencies like Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), EOS.IO (EOS), and Litecoin (LTC)! Harness these coins' advantages to tap into a world beyond traditional finance, with limitless potential for investments and transactions! Explore a world of possibilities with Stablecoins, DeFi coins, and many more options! Each digital asset offers unique attributes that may suit your needs.
The cryptocurrency is creating through a process called mining. Miners are rewarding with cryptocurrency for verifying and committing transactions to the blockchain digital ledger. Ethereum miners are compensated based on their contribution rather than the number of blocks mined.
Cryptocurrency is a revolutionary form of digital currency that uses cutting-edge cryptography to facilitate secure payments. With no government or banking oversight, it's completely decentralized and offers users numerous types of cryptocurrencies with varied features and uses. It allows individuals to securely transfer funds without relying on external financial institutions.
Virtual currency is a special type of digital money. It exclusively exists online and differs from other digital currencies, which may or may not be virtual.
Digital money, sometimes known as cybermoney, is a synonym for electronic money with properties of traditional (fiat) money that may be regulated and uncontrolled. Virtual currencies and cryptocurrencies are two types of digital.
Cryptocurrency: types and their features
What is Bitcoin
Bitcoin is the most popular and groundbreaking cryptocurrency, which emerged in 2009 by an anonymous creator or collective with the pseudonym of Satoshi Nakamoto. This decentralized currency isn't governed by any governing body or financial institution, making it completely autonomous. An online network of miners known as a blockchain validates all transactions recorded on a public ledger for everyone to see. You can obtain, buy/sell and exchange Bitcoin for goods or services worldwide!
Unveiling Bitcoin: All You Need to Understand About this Revolutionary Digital Currency
Bitcoin is a digital currency that controls and creates money by code. Composed in an open-source computer language, that code is modifiable by anyone. Unlike traditional physical currencies such as the dollar, euro, yen or yuan, Bitcoin exists digitally with no tangible form of presence. It exists only on the Internet, usually in digital wallets. Bitcoin wallets are available in various forms – from a phone or computer app that stores your coins to a simple piece of paper exhibiting an address.
Where can I get bitcoins?
You can buy bitcoins with real-world money or trade them with other digital currencies. Different exchanges facilitate the buying and selling of bitcoins. Coinbase has earned its global prestige as a top-tier exchange for Bitcoin buyers, sellers and traders. It is due to their simple-to-navigate platform combined with ultra secure transactions – all of which make Coinbase the obvious choice when trading cryptocurrencies.
How to buy bitcoin and can you earn from it?
How to buy Bitcoin? You can buy Bitcoin on different exchanges. The most popular ones are Coinbase, Kraken, and Binance coin. Congratulations on creating your business account! Now, it's time to increase your Bitcoin reserves and start buying. To do so, deposit money into your newly established account.
Can you earn Bitcoins?
Absolutely! If you're looking to get involved with Bitcoin, the options are plentiful. You can trade, mine, or even provide cryptocurrency services.
Why mine bitcoin?https://www.investopedia.com
How did the bitcoin rate change in its history?
The Bitcoin market is unpredictable, with prices frequently fluctuating. In 2009, a single Bitcoin was worth just eight cents; yet by December of 2017 it had reached its peak price of nearly $20,000!
What is an altcoin?
Bitcoin's primary competitor is known as an altcoin. Beyond Bitcoin, all other digital currencies referrer to as altcoins. Altcoins frequently create to improve on Bitcoin's features or pursue different aims and objectives. Ethereum, Litecoin, Dogecoin and XRP are notable crypto-currencies offering an alternative to Bitcoin.
In 2008, bitcoin's open-source code and launch sparked the creation of thousands of alternative bitcoin coins (altcoins), sometimes called copycat currencies.
The majority of them are comparable to bitcoin in some ways. As an illustration, Charlie Lee created Litecoin to serve as a competitive peer-to-peer currency and global payment network similar to Bitcoin.
However, there are other reasons for buying bitcoin:
- Ethereum is an innovative blockchain platform that pioneers the development and distribution of decentralized applications (DApps) with advanced intelligent contracts. It's a breakthrough technology, providing developers unprecedented opportunities to create dynamic digital products.
- IOTA is a revolutionary technology that enables data transmission and facilitates transactions in the ever-growing Internet of Things (IoT) and Machine-to-Machine (M2M) economy. Developed by its creators, this cryptocurrency promises to revolutionize how we use our devices for economic purposes. Experience faster, secure payments and cheaper transaction fees with this groundbreaking technology! The Tangle, IOTA's own distributed ledger technology, is utilized.
- All cryptocurrencies function in their networks, using distributed ledger technology (DLT). Blockchain is the most widespread and popular form of DLT. Each altcoin's distinctive underlying code variations make it unique.
- Traders on CoinMarketCap flock to Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) , Litecoin (LTC), and EOS.IO(EOS) amongst the 900+ available cryptocurrencies for trading, making it an attractive option with immense potential.
What is a stablecoin?
Stubblecoin is designing to minimize price volatility. Stablecoins are backing by assets such as fiat currency (e.g
What is a token
A token is a type of cryptocurrency that represents an asset or utility. Businesses tap into tokens to raise funds during an Initial Coin Offering (ICO). Tokens can use to purchase goods and services or confer rights such as voting or ownership.
How are tokens issued?
Tokens can be issued by anyone, although companies or projects issue most. Companies often issue tokens during an ICO to raise funds for their project.
There are several sorts of tokens:
- Equity tokens – securities (shares) of a company, service tokens – used by online platforms and can represent points, game currency, reputation, etc.
- Asset-backed tokens are a commitment to services or goods.
Who launches tokens
Anyone can launch tokens, but companies or projects undertake most. Companies will often launch tokens during an ICO to raise funds for their project.
What are DeFi-tokens
Cryptocurrency is the digital asset of tomorrow, utilizing innovative cryptography to protect transactions and ensure the secure creation of new units. Unencumbered by government or financial institution control, cryptocurrencies are decentralized and have various uses due to their unique characteristics. In this blog post we'll explore the various types available now—and in store for us all in the future!
Cryptocurrency: types and their features
Digital money, sometimes known as cybermoney, is a synonym for electronic money with properties of traditional (fiat) money that may be regulated and uncontrolled. Virtual currencies and cryptocurrencies are two types of digital.
A fork can be temporary or permanent. A hard fork is a permanent divergence from the existing protocol, forming an entirely new blockchain that cannot reconcile with its predecessor. A soft fork is an upgrade to the protocol that preserves compatibility with previous versions.
What is an ERC20 token
An ERC20 token is a cryptocurrency that uses Ethereum's network as its infrastructure. ERC20 tokens, made possible by Ethereum's revolutionary intelligent contracts technology, can be used to represent various items – from loyalty points and currencies to assets.
ERC20 tokens are stored and transferred using Ethereum's wallets (e.g., MetaMask, MyEtherWallet).
Explanation of non-interchangeable tokens https://www.forbes.com/advisor/investing/cryptocurrency/nft-non-fungible-token/
Examples of cryptocurrencies.
To better understand the variety of assets in the crypto market, it makes sense to look at specific cryptocurrencies, tokens and stabelcoins.
1. Bitcoin (BTC)
Bitcoin (BTC)Bitcoin is the pioneer of all cryptocurrencies, founded in 2009 by a phantom figure or collective known merely as “Satoshi Nakamoto”. Operating without being beholden to any government body or banking institution makes it a decentralized cryptocurrency. Transactions are confirmed through an intricate network of miners and registered on an accessible ledger called blockchain. You can conveniently make all your transactions by having access to acquire, sell, and even trade this digital currency for goods or services.
Bitcoin is a disruptive form of digital currency, created using advanced code written in open-source computer language that anyone may quickly review and amend. Its revolutionary potential has been widely acknowledged and embraced around the world! Unlike hard cash like the dollar, euro, yen, or yuan found in physical forms such as notes and coins; Bitcoin exists solely on the web – usually stored within digital wallets. These virtual vaults take multiple formats: an application you install on your smartphone/computer to store Bitcoins or even a simple piece of paper bearing your unique Bitcoin address!
You can buy bitcoins with real-world money or trade them with other digital currencies. Different exchanges facilitate the buying and selling of bitcoins. If you're looking to purchase, swap, or invest in Bitcoin, Coinbase is the ideal resource. It's one of the most preferred exchanges in existence!
Cryptocurrency miners rely on powerful computers to verify transaction blocks and, through proof-of-work (PoW), generate more bitcoins. Logging the transactions on the blockchain makes each bitcoin validated and secure. However, this process requires massive amounts of energy, leading to concerns about environmental pollution.
2. Ethereum (ETH)
Going beyond the Bitcoin technology, Ethereum gives users access to a groundbreaking blockchain platform that allows them to generate and execute decentralized applications (dApps) on its network. However, Ethereum explicitly designed as a programmable blockchain. It means that it wasn't created to support a currency but rather to enable the development and deployment of dApps.
Ether (ETH) is the native currency of Ethereum develope as a form of payment on the platform. ETH is a fuel that powers the Ethereum blockchain. Ethereum has played a vital role in the success of many initial coin offerings by hosting them on its blockchain. In addition, Ethereum was the pioneering platform for creating Non-Fungible Tokens (NFTs), which has been an astounding achievement.
Despite their shared fame, it is paramount to recognize the distinct purposes of Bitcoin and Ethereum. As such, they can see as supplements of each other rather than rivals in the industry.
Bitcoin is a groundbreaking, transformative digital system of payment that eliminates the need for any centralized authority and empowers people to engage in transactional activities safely. This innovative network architecture has paved the way for complex blockchain applications. Ethereum, the world computer, expands on Bitcoin's technology by implementing smart contracts. It permits the construction of dApps, including many crowdfunding platforms, financial instruments, digital games and collectibles, and decentralized marketplaces.
By June 2022, Ether had become the second most popular cryptocurrency after Bitcoin. Unlike Bitcoin, which has a finite number of coins, Ethereum can create an infinite amount of ETH through its revolutionary proof-of-work system. More specifically, there is no limit on how much ETH can produce using the Ethereum platform!
3. Tether (USDT)
Tether prided itself on being a pioneering cryptocurrency known as a stablecoin, an asset tied to traditional currencies. In this case, the U.S. dollar pegs the value of Tether. Tether is currently the world's largest stablecoin and in 2022, it will use to trade most cryptocurrencies.
Much like other stablecoins, Tether is intended to provide stability and transparency to users with fewer transaction fees. Tether does not designe as a speculative investment like some cryptocurrencies; it initially mean for investors who wanted to avoid the market's extreme volatility. Because tether pegge to the U.S. dollar (indicated by USDT), it should maintain a 1:1 value with the dollar according to claims though this sometimes undergoes scrutiny.
Many fear that any collapse of Tether, a cryptocurrency, would have catastrophic consequences for the entire digital currency market.
In May 2022, tether briefly lost its peg to the dollar, and all cryptocurrencies plummeted. It was partly due to another stablecoin, terra (USD) falling below 30 cents. The panic in the broader crypto market was evident as many investors tried to redeem their tethers while others attempted to exit the asset class altogether; unfortunately resulting in loss of investments for some people.
4. USD Coin (USDC)
USDC is a digital stablecoin that's equal to USD 1. It was developed by Circle and Coinbase and release on the Ethereum, Stellar, Algorand, and Solana blockchains.USD 1 is helt in reserve for each USDC token. Grant Thornton LLP, a renowned international accounting firm, regularly audits this system to ensure it is secure and reliable. USDC created in September 2018 and, as of March 2021, it announce that Visa would be allowing USDC to use for settlement on its payment network.
USDC is a stablecoin that can function on several blockchain networks, primarily Ethereum. The currency of this nation is directly correlated to that of the United States, creating a stable and reliable value—dollar at a guaranteed 1:1 ratio, making it a trustable form of cryptocurrency exchange.
As crypto has flourished, stablecoins have emerged as an indispensable feature of the digital currency space. A stablecoin's peg, or how it maintains a steady value, differs based on its infrastructure. Stablecoins can come from centralized sources or collateralized in decentralized ways. They might also use algorithmic systems to keep prices level.
The primary objective of having a stablecoin like USDC is to make transactions quicker and more affordable. Although there are concerns regarding whether U.S. dollar reserves back the tether stablecoin, some investors trust that USDC is considerably more transparent: Its resources supervise by Grant Thornton, LLC's American branch – a global accounting firm. On March 29th, 2021, Visa announced its plans to use USDC to settle transactions on its payment network. As of June 2022, 55.09 billion units of USDC were in circulation worldwide.
5. Binance Coin (BNB)
Binance is one of the most prominent cryptocurrency exchanges today, and its utility token BNB is an efficient form of medium exchange on the platform. Initially built upon Ethereum's blockchain, it has since transferre to run on its revolutionary blockchain network. Initially, holding and using BNB allowed traders to get discounts on trading fees within the Binance ecosystem. Still, now it can use for payments, booking travel, entertainment, online services, and other financial services outside of being restricted to users within the Exchange.
BNB is a top-five cryptocurrency by market cap and has developed numerous use cases and applications, but it has faced regulatory issues in different countries.
Binance created a maximum of 200 million tokens, half of which were available to investors during its ICO. Every quarter, to increase demand, Binance buys back and destroys some of the coins it holds. It call “burning” because it reduces the overall supply. The motivation for doing this is that assets usually rise in price when the circulating supply decreases and they become more scarce.
6. XRP (XRP)
XRP is the digital asset native to the Ripple Ledger. Its design facilitates transferring value and creating verifiable transactions between different fiat currencies in a low-cost manner.
many Ripple products can potentially improve traditional systems like credit cards and banks by minimizing unnecessary steps and enhancing user experience.
XRP was created by Ripple Labs, Inc. Contrary to a widespread misbelief, XRP and Ripple are not synonymous – they represent two independent organizations. Ripple is a global money transfer network used by financial service companies while XRP is the cryptocurrency designed to utilizate on the Ripple network. You can purchase XRP as an investment or exchange it for other cryptocurrencies. XRP serves an additional purpose as a way to finance transactions on Ripple.
It is impossible to “mine” XRP like Bitcoin and other cryptocurrencies- instead, only 100 billion coins exist. Also, XRP doesn't use blockchain technology to verify transactions; the Ripple network confirms transaction validity via a consensus among nodes. Votes from participating nodes validate tra
7. Cardano (ADA)
Cardano provides an advanced Proof-of-Stake blockchain platform that allows users to create, facilitate and execute smart contracts. Cardano focuses heavily on academic research to ensure the high transaction-per-second (TPS) throughput, and the consensus mechanism called Ouroboros uses very little energy. ADA, which is the native coin of Cardano, executes smart contracts and facilitates transactions all over the network
Cardano markets itself as a blockchain platform of the third generation and, thus, sets itself apart from other cryptocurrencies as next-level. Cardano operates on a proof of stake (PoS), meaning that the complex PoW calculations Bitcoin requires for mining its coins are unnecessary. Consequently, this makes Cardano's network more efficient and sustainable than other crypto networks.
Cardano can use for identity management and traceability. The first application can employing to facilitate the aggregation of data from a variety of sources. The latter can use to audit a product's manufacturing path, and potentially prevent fraud and counterfeit goods.
Cardano is being created in five stages to develop the network into a platform for decentralized applications (dApps) with a ledger that can hold multiple assets and has smart contracts that can verified. The research-based framework Cardano uses for each stage and the peer-reviewed insights it relies on have helped give Cardano a scholarly reputation.
8. Solana (SOL)
The Solana platform creates the cryptocurrency, Sol. This company has progressed in decentralized finance (DeFi), particularly with its innovative contract technology. Smart contracts are similar to regular paper contracts but without needed third parties. Solana created the Degenerate Ape Academy and introduced proof-of-history (PoH) to the protocol. PoH makes it possible for anyone to check whether an event occurred in the past without being an eyewitness. It is a big step forward for Solana's usability and scalability.
SOL aims to improve blockchain scalability by creating a proof-of-history consensus in addition to the current proof-of=stake agreement.
The Solana Foundation is dedicated to making decentralized finance more available, drawing the interest of small traders and extensive institutions. Solana uses an innovative hybrid consensus model to allow anyone ready to explore new trading frontiers.
Solana is famous for its record-breaking processing speeds. The SOL hybrid protocol cuts down transaction validation times and brilliant contract execution. Solana's rapid processing has caught the eye of many institutions.
Solana's protocol is designed to welcome both everyday consumers and enterprise customers. One of Solana's selling points is that users will be satisfied with hidden fees or taxes; the protocol prioritizes low transaction costs without impeding fast processing or scalability.
9. Dogecoin (DOGE)
Dogecoin (pronounced doh-coin) was first introduced in 2013 as a joke cryptocurrency, making fun of Bitcoin. Even though it started as a joke, the currency captured people's attention and got quite a lot of investment. In April 2019, Elon Musk tweeted that he had a favorable view of Dogecoin which caused even more people to take the cryptocurrency seriously.
Dogecoin, a blockchain-based digital currency akin to Bitcoin and Ethereum, employs an open source ledger system using the proof-of-work approach. Unlike Bitcoin, there's no limit on the number of coins mined from a given blockchain, so you'll always have chances to increase your income!
Dogecoin is primarily used as a tipping system on Reddit and Twitter to reward individuals for creating or sharing quality content. Participate in conversations with fellow crypto enthusiasts or collect free coins from faucets—it's that easy! A tap is a website that provides users with a small amount of the currency for free, acting as an introduction to Dogecoins.
In 2014, Dogecoin was featured in news headlines across the globe when compassionate contributors gifted an astounding $30,000 using its currency to fund the Jamaican bobsled team's participation at the Winter Olympics.
DOGE is one of the most significant coins by market cap, yet it trades at a measly 0.072 cents as of June 25, 2022.
10. Polkadot (DOT)
Gavin Wood co-founded Polkadot and Ethereum to improve a blockchain network's capabilities. The cryptocurrency for the Polkadot platform is called DOT, which launche in 2020. It has become one of the most successful crypto networks within a brief period.
Polkadot connects two blockchains — the leading relay network, where transactions are permanent, and a parallel network of user-created blockchains called parachains. Parachains are Polkadot-based independent blockchains that connect to and run off of Polkadot's main blockchain (relay chain).
Parachains process transactions through sharding, which involves splitting a blockchain into multiple pieces stored on different computers. By lightening the load on each machine, the network can process an even more significant number of transactions in a much shorter period. Parachains can customize for various uses, such as building apps, supporting other coins, and benefitting from the main blockchain's security.
Polkadot's key differentiator from other blockchain solutions is its focus on interoperability. Polkadot aims to enable communication and collaboration among disparate systems by building so-called bridges between blockchains. While it is not the only system with this goal, Polkadot's approach has gained significant traction in recent years.
11. Dai (DAI)
Dai (DAI) is a native cryptocurrency of the Maker Protocol, an open-source software application maintained by the decentralized autonomous organization (MakerDAO). DAI is a decentralized stablecoin that a central authority or organization does not manage. It is soft-pegged to the US dollar and tries to keep its value relatively steady compared with other cryptos. The utility and governance token of MakerDAO is MKR, which use to stabilize the price of Dai crypto.
Dai designed for crypto lending, the Maker protocol's main objective. However, because Dai is an ERC20 token, it also has a range of other possible uses on Ethereum, like creating smart contracts.
Dai (DAI) is a collateral-backed cryptocurrency that uses smart contracts to maintain approximately a one-to-one value with the U.S. dollar. In other words, Dai coin is a stablecoin. However, unlike other stablecoins which are running by centralized organizations that manage price stability, DAI crypto is based on smart contracts and backed by other forms of crypto through collateralized debt
12. Shiba Inu (SHIB)
Shiba Inu cryptocurrency (SHIB) is a meme coin, meaning it is a cryptocurrency based on a viral joke or cultural reference. Meme coins usually gain popularity from social media attention. For instance, Dogecoin (DOGE) conceive in 2014 as a comical method of utilizing cryptocurrencies with the image of a Shiba Inu dog. It inspired the development of Shiba Inu to follow suit.
SHIB plans to be a competitor to Dogecoin or a “Dogecoin killer.” Rather than having its blockchain as DOGE does, SHIB uses the Ethereum blockchain. However, both DOGE and SHIB have unlimited supplies of coins. When it started circulating, SHIB initially collected one quadrillion coins.
Like any investment option, the Shiba Inu cryptocurrency has a few advantages and disadvantages. Additionally, it holds value for the following reasons:
There is a limited supply of SHIB. The SHIB coin are launching in 2020 with a fixed 1 quadrillion supply — nearly 50% of which has already burn or donated — keeping the market price low (one Shiba coin is worth a fraction of a penny). The cap on the number of coins has also given the price somewhere to go if demand should rise.
• SHIB comes with numerous benefits that other cryptocurrencies don't offer. For example, Shiba Inu has a system where users can get rewards from staking — locking up crypto holdings to receive dividends or interest — simply by depositing funds in a liquidity pool. Offering this type of reward system encourages users to use different types of coins on the network.
13. TRON (TRX)
TRON (TRX) is a blockchain-based operating system created by the Tron Foundation in 2017 that moved to its network a year later. Its main aim is to ensure this technology is suitable for everyday use.
TRON software supports various blockchain systems, smart contracts, and dApps. Much like Bitcoin, it uses UTXO to make publically viewable transactions in a ledger by anyone on the network. Data is hosting without any central authority, so usage is free.
TRON aims to help content creators who only receive a small income for their work by providing more rewards through TRX tokens. For example, TRON encourages content consumers to reward makers directly, without intermediaries like YouTube or Apple. Additionally, decentralized games deployed on the network allow players to directly promote and reward creators with digital assets.
TRON is design to create a decentralized Internet. As TRON is an alternative to Ethereum, it acts as a tool for developers who wish to create dApps. On the TRON network, anyone can post content and receive digital assets in return for their contribution without worrying about transaction fees. Consequently, the advantage of TRON allows creators to share their content fearlessly and openly
14. Avalanche (AVAX)
The Avalanche blockchain platform is designing for smart contracts, dApps, and subnets (customized blockchains). It focuses on fast transactions, low fees, and efficient energy. AVAX is the native token of the Avalanche network.
Its three-blockchain architecture and PoS consensus protocol make Avalanche stand out from its competitors, as it can provide high throughput without compromising security or decentralization.
As part of a group of innovative contract platforms that compete with Ethereum, collectively referred to as “Ethereum killers,” Avalanche is notably the second-largest crypto by market cap and was the first blockchain to enable smart contract functionality. Smart contracts are computerized protocols that verify, facilitate, or enforce the negotiation or performance of a contract. Unlike traditional contacts that require a notary's signature to establish their validity, intelligent contracts rely on cryptographic algorithms to ensure their authenticity.
Numerous apps for DeFi and NFTs have caused congestion on the Ethereum network as users to vie to get their transactions in the next block. Higher gas fees are the result. Therefore, crypto protocols have started constructing on layer-2 solutions like Polygon. Avalanche desires to circumvent this requirement and instead has a layer-1 solution to manage everything necessary for this blockchain application.
Avalanche requires three distinct blockchains to operate efficiently and on a larger scale than similar platforms. Most blockchain networks only utilize one chain, but Avalanche has found that distributing the work among several chains leads to a better overall user experience.
15. Polygon (MATIC)
Matic, an Ethereum infrastructure project, changed its name to Polygon in early 2021. Polygon is designed for Ethereum developers and focuses on making transactions faster and more secure by improving the infrastructure of the Ethereum network.
The Matic project had over 80 applications with 7 million transactions and 200,000 users before it relaunche as Polygon. What makes this cryptocurrency project and its MATIC token different from others?
Polygon's and Matic's primary objective is to make Ethereum (ETH) and the Ethereum blockchain more accessible for developers. The utilizes agreements that can be confirmed and executed without any third party required, such as a judge or lawyer.
Matic's developers realized that issues were holding back Ethereum's smart contracts and dApps from being widely adopted: scalability and user experience. To fix this, Matic decided to use sidechains. Sidechains are separate blockchains tethered to a parent blockchain via a two-way peg, allowing interchangeable assets.
Since the sidechain fix was successful in its ability to complete the project's goals without slowing down the network as a whole, Ethereum transactions now only require gas paid in ether. The MATIC token would be used as payment for transaction fees on the Matic network from here on out. Noticing this change, many investors put their faith into Polygon (MATIC), pumping new money and credibility into it.