Polygon (POL) is a Layer 2 scaling platform built on Ethereum that enables cheaper, more efficient transactions without compromising the main network’s security. In recent years, the Polygon network has become one of the most widely used alternatives for stablecoin payments (especially USDT), thanks to its flexibility, low fees, and near-instant transaction confirmations. Below, we explore Polygon’s origins and key features.
Origins of the Polygon network
The project began in 2017 as Matic Network, founded by software engineers Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. The project aimed to address a common issue at the time: Ethereum would frequently become congested, driving transaction fees so high that small-scale operations became unfeasible. The proposed solution was to process transactions on a parallel network and rely on Ethereum only for essential functions. In 2021, the project was rebranded as Polygon—a change that reflected a broader vision for the initiative.
How it works with Ethereum
Polygon does not operate in isolation; instead, it relies on Ethereum as its base network. Polygon first validates transactions, then records a cryptographic summary of those transactions on the Ethereum mainnet via specific smart contracts. This anchoring mechanism lets Polygon process a high volume of transactions while still benefiting from the main chain’s security.
A core design feature of the Polygon network is its compatibility with Ethereum addresses, wallets, and token standards. As a result, a company or supplier already operating on Ethereum doesn’t need new tools to receive payment on Polygon. This is a significant distinction compared to other alternatives, such as the Solana network or the TRON network (which uses its own TRC-20 standard), where compatibility must be verified before every transaction.
POL: The token that replaced MATIC
As of September 2024, POL is the token used to pay for every transaction on the Polygon network. The transition was a one-to-one replacement for the former MATIC token; by September 2025, 99% of the total supply had migrated. Currently, POL covers transaction fees and supports network security through staking, with a portion of validator rewards allocated to participants, meaning a company paying its suppliers in USDT on Polygon must maintain a small POL balance to cover these fees.
Confirmation times and finality
The Polygon network produces a block every 1.75 seconds—a reduction from the previous 2-second interval, implemented via the PIP-86 improvement proposal (the first change to block time since the network’s launch). Furthermore, the block time also represents the “finality”—the point at which a transaction is considered irreversible.
The “Heimdall v2” update (deployed in July 2025) reduced finality from one to two minutes to about five seconds. Subsequently, the “Rio” update (active since October 8, 2025) brought finality down to effectively a single-block timeframe, practically eliminating the risk of chain reorganizations. For a business, this means a supplier can confirm payment receipt within seconds and proceed with fulfillment without waiting for additional confirmations.
Cost per transaction
Transaction fees on Polygon typically remain below one cent—a level that renders network costs negligible for most business operations.
This threshold is maintained even during periods of increased activity. The Bhilai hard fork, implemented on July 1, 2025, raised the gas limit per block from 30 million to 45 million, boosting the network’s capacity to over 1,000 transactions per second—all while keeping fees within that same low range. This offers a significant advantage for businesses: they no longer need to batch or defer payments simply to save on network fees. Instead, businesses can decide when to make a payment based on business criteria rather than the network’s technical costs. This predictability also makes it easier to estimate the total monthly cost of operations.
Stablecoins on Polygon and B2B payments
Both USDT and USDC circulate on the Polygon network, which adheres to Ethereum standards, making it one of the most popular networks for settling transactions in digital dollars. Choosing both the currency and the network is a key decision for any company looking to make payments with stablecoins.
Polygon’s low fees, efficiency, and fast transactions make it especially useful for high transaction volume. With Polygon, a company that needs to settle dozens or even hundreds of invoices in a single workday can execute automatic bulk payments without transaction fees adding up to affect decisions or the bottom line.
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