The world of digital finance is witnessing yet another significant shift with Swiss-based digital asset infrastructure provider, Taurus, partnering with the Ethereum scaling platform, Polygon. This strategic alliance is a crucial stride towards the wider acceptance and incorporation of real-world asset tokenization by financial institutions and corporations on a global scale.
We have decided to explore the details of this partnership, provide insights into the mechanisms of Polygon, and guide you on how to purchase Polygon’s native MATIC token. This article also discusses how increasing the adoption of the Polygon network could potentially impact the price of MATIC. Is it a bright future ahead for Polygon, or still a very winter-like flat continuation?
The big news
Swiss digital asset services provider Taurus, specializing in custody, tokenization, and trade of digital assets, has forged a connection with the Ethereum scaling platform Polygon. This alliance is being seen as another significant step towards widespread adoption of tokenization – the digital transformation of real-world assets – by major companies and financial institutions.
In an announcement made on a recent Friday, Taurus conveyed that the partnership with Polygon extends beyond the mere collaboration and also provisions for staking and decentralized finance (DeFi). The Switzerland-based firm recently secured funding of $65 million in a round spearheaded by Deutsche Bank (DBK) and Credit Suisse (CS) back in February.
Tokenization, or the conversion of an asset into units that can be digitally traded, is increasingly being viewed as the driving force that is propelling traditional financial institutions towards the blockchain industry. In April, JPMorgan’s Onyx platform’s head of digital assets, Tyrone Lobban, pointed to tokenization as the game-changer for conventional finance. Evidence of this emerging trend was seen last November when JPMorgan completed real-time trades using tokenized variants of the Singapore dollar and the yen on Polygon. In April, a report by the Bank of America revealed that the market for tokenized gold had exceeded $1 billion the month prior.
In their recent communication, Taurus mentioned, “A majority of top-tier financial institutions are making their way into the sector and developing the ability to handle tokenized securities. They are all in pursuit of an infrastructure that is token-agnostic and blockchain-agnostic.”
Being a layer 2 blockchain, Polygon has been created to execute transactions with a higher velocity and at a lesser cost compared to the primary Ethereum network. The ambition of Polygon transcends its Ethereum roots as it aims to evolve into an interconnected “internet of blockchains”. It intends to link all Ethereum-compatible networks while simultaneously lowering transaction expenses and boosting transaction speed.
What is Polygon?
Polygon, formerly known as Matic Network, is a scalable, multi-chain platform designed to offer superior performance for Ethereum-compatible blockchains. It is primarily known for its Layer 2 scaling solutions which significantly enhance the speed and efficiency of transactions on networks that are based on Ethereum.
Layer 2 is a secondary network that is built on top of an existing blockchain and in our case it is Ethereum. The main goal of these solutions is to solve the scalability issues that often plague blockchains, including network congestion, slow transaction times, and high fees. By moving transactions off the main Ethereum chain and processing them on a side chain – which is what Polygon does – these problems can be largely mitigated.
Polygon has a unique structure known as a ‘multi-chain’ system, which allows it to process transactions faster and at a lower cost compared to the main Ethereum network. This is achieved by running side chains alongside the main Ethereum chain. Each of these side chains operates independently, processing its own transactions and smart contracts.
But Polygon does more than just scale Ethereum. It is also committed to creating a global, decentralized platform for multi-chain applications, also known as ‘internet of blockchains.’ This involves connecting different Ethereum-compatible blockchains to enable seamless transfer of any type of asset between them.
It uses a Proof-of-Stake (PoS) consensus mechanism, which allows users to stake their tokens in order to participate in the network. This makes the system more democratic, as more participants mean more decentralization. Staking also provides an incentive for users to participate actively in the network, as they can earn rewards for their service.
Polygon’s architecture offers flexibility and provides developers with a platform to build high-performance dApps. The platform also features a user-friendly interface and a robust community, making it an attractive choice for developers, users, and investors alike.
The collaboration between Polygon and Taurus is poised to offer a boost to the global adoption of tokenization, allowing for a faster, more efficient digital representation of real-world assets. Through this partnership, the companies aim to drive the future of finance, combining traditional and decentralized financial practices in a unique and innovative way.
How to buy MATIC before it spikes?
Polygon seems to be in a very favourable spot right now, but how to buy MATIC? This can be a straightforward process that you can complete on established cryptocurrency exchanges such as Gate.io. Here’s how to buy Polygon.
First, you’ll need to set up an account on Gate.io or log in if you already have one. The sign-up process typically requires you to provide an email address and set a password. After verifying your email, you will need to implement security measures such as two-factor authentication for enhanced safety.
Once your account is set up and secured, you can deposit funds into it. Depending on the platform, this could be in the form of another cryptocurrency like Bitcoin or Ethereum, or in some cases, you can also deposit fiat currency.
With funds in your account, navigate to the trading section of the exchange. Here, you can find the pair that you wish to trade, for example, MATIC/USD or MATIC/BTC, depending on what you deposited. Input the amount of MATIC you want to purchase and confirm the transaction.
Always be mindful of the current market price and make sure to review your transaction before confirming. Once your purchase goes through, the MATIC tokens will be added to your exchange wallet. From there, you can decide whether to keep them in the exchange wallet or move them to a private wallet for added security.
MATIC price prediction
Let’s not beat around the bush and tackle the elephant in the room. According to MATIC price prediction engine of Gate.io, in the next few years it should go up by 100%, given that the positive sentiment persists. But why exactly would it appreciate? The increase in adoption of the Polygon network directly contributes to the appreciation of the value of the MATIC token, primarily due to the principles of supply and demand. Essentially, the more widely accepted and utilized Polygon becomes, the more demand there is for MATIC tokens, which are used to facilitate transactions and pay for services on the platform.
As more projects, developers, and users turn to Polygon for its scalability solutions, they need to use the MATIC tokens to interact with the Polygon network. This drives up the demand for the token. If the supply does not increase at the same rate as the demand, the price of the token is likely to rise.
Moreover, MATIC’s Proof-of-Stake consensus mechanism allows token holders to stake their MATIC tokens as a way of participating in the network’s security and governance. The staking process locks up these tokens for a certain period of time, effectively decreasing the circulating supply of the tokens and potentially leading to a price increase due to scarcity. All of this provides a positive sentiment that may result in a respective increase in the price of MATIC.