I’m a beginner to the cryptocurrency and I’m struggling to understand the fundamentals of this field. I was reading about how cryptos work and what they are used for. I took as an example the MATIC and I couldn’t really understand:

“Polygon (MATIC) is an Ethereum token that powers the Polygon Network — a protocol and framework for building and connecting Ethereum-compatible blockchain networks.”

How does it power the network? I have seen this concept so many times. In other words, how a cryptocurrency powers a network? I understand this might be a silly question to ask but I searched a lot but couldn’t really get it. I appreciate your help.

1 Answer 1


Polygon and several other project created a blockchain that runs independently of Ethereum. It just happen that their native currency also is a token in Ethereum. They provide a bridge to move tokens between both chains.

The term "powered by" is just a marketing strategy. The side chain, or L2 chain is usually an Ethereum clone that uses proof of authority or proof of stake as consensus algorithm.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.