Polygon (POL)

Decentralized Finance (DeFi)

Polygon supports DeFi by enabling faster and cheaper transactions. It is used by major DeFi protocols like Aave and Compound, allowing users to lend, borrow, and trade assets efficiently.

Non-Fungible Tokens (NFTs)

Polygon powers NFT marketplaces such as OpenSea, offering low fees and quick transactions for creating, buying, and selling NFTs.

Gaming and Web3

Polygon Studios helps developers build Web3 games with support from the community, marketing, and investments, making blockchain gaming more accessible.

Scalability and Layer 2 Solutions

Polygon acts as a Layer 2 scaling solution for Ethereum, improving transaction speed and reducing costs by processing transactions off the main Ethereum chain and then settling them on it.

Staking and Governance

Users can participate as validators or delegators in Polygon’s Proof of Stake system, helping secure the network and earn rewards.

Digital Payments and Tokenization

Polygon enables real-time payment settlements and supports tokenization of assets, making it easier to use blockchain for everyday transactions and digital asset management.

Pros of Polygon

• Fast Transactions: Polygon processes transactions quickly, usually within 2 to 3 seconds, much faster than Ethereum.
• Low Fees: It offers much lower transaction costs compared to Ethereum, making it cheaper to use.
• Ethereum Compatibility: Polygon works with Ethereum, allowing developers to build and connect Ethereum-compatible blockchains easily.
• Scalability: It helps solve Ethereum’s congestion by batching transactions, improving network speed and capacity.
• Flexibility: Developers can create custom Layer 2 blockchains tailored to specific business needs.
• Growing Ecosystem: Many projects and DeFi platforms use Polygon, increasing its adoption and utility.

Cons of Polygon

• Dependence on Ethereum: Polygon relies on Ethereum for security and final transaction settlement, so issues on Ethereum can affect Polygon.
• Network Changes: Polygon is undergoing upgrades (like Polygon 2.0), which are still being tested and may bring uncertainties.
• Competition: It faces competition from other Layer 2 and scaling solutions, which could impact its market position.
• Validator Selection: Its unique validator system differs from traditional Proof of Stake, which may affect decentralization perceptions.

For more details, visit the official Polygon website.

Founders of Polygon

Polygon was co-founded by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun in 2017. Later, Mihailo Bjelic also joined as a co-founder. These founders come from backgrounds in blockchain development and business, and they played key roles in building Polygon's technology and ecosystem.

Major Investors in Polygon

Polygon has raised over $450 million in funding from multiple rounds. Key investors include:

• Sequoia Capital India (led a $450 million private sale round)
• SoftBank Vision Fund 2
• Galaxy Digital and Galaxy Interactive
• Tiger Global
• Republic Capital
• Prominent individual investors like Alan Howard and Kevin O’Leary

Other notable investors and firms involved in Polygon's funding rounds include:

• Spark Capital
• Pear VC
• Alameda Research
• Animoca Brands
• Union Square Ventures
• Seven Seven Six
• Elevation Capital
• DCG (Digital Currency Group)
• Standard Crypto
• Dragonfly Capital
• Variant Fund
• WorkPlay Ventures (led by Zynga founder Mark Pincus)
• Third Point
• Steadview Capital
• Accel

These investors support Polygon’s mission to scale Ethereum and develop Web3 infrastructure.

Halal Status of Polygon

Yes, Polygon is considered halal. It is a Layer-2 scaling solution for Ethereum that does not involve prohibited activities like interest (riba), gambling, or excessive uncertainty (gharar). Its technology and use cases align with Shariah compliance, making it permissible for Muslim investors.

Reasoning

• Polygon operates as a utility token within a decentralized network, supporting Ethereum-compatible projects.
• It avoids involvement in haram activities and maintains transparency and decentralization.
• Scholars often compare Polygon to Ethereum, which is widely accepted as halal.
• DeFi projects on Polygon can also be halal if they follow Islamic finance rules.