What is Polygon and how does it work? $POL

Polygon is a second-layer network of Ethereum $ETH . Like Bitcoin $BTC , Ethereum is limited in its base layer, maintaining a scale that is mainly vertical, as in a technology stack.

Polygon, in turn, is a network that aims to improve Ethereum's scalability. The protocol is capable of processing transactions in parallel and specialized networks. This allows interaction with the Ethereum ecosystem and its applications without the need to interact with the base layer. Because of this factor, Polygon – like Ethereum – has a rich ecosystem of Decentralized Applications (DApps), such as DeFi (Decentralized Finance) protocols and others.

This is essential, given the limitations of the Ethereum network. In times of high activity, it is common for the network's transaction fees to reach hundreds of dollars. These limitations, however, allow for relatively low-cost node operation. This is essential for the decentralization of the network.

Polygon operates through a Proof of Stake consensus mechanism. To become a validator, you need to ‘lock’ coins to gain the right to include a block of transactions in the network. Polygon’s native token is POL, which is used to pay transaction fees and reward stakers.