Introduction
What is Polygon?
Polygon, formerly known as Matic Network, is a protocol and framework for building and connecting blockchain networks compatible with Ethereum. This protocol tries to solve some of Ethereum's major limitations, including its throughput, poor user experience, and lack of community governance, using a new on-chain solution.
What is the purpose of Polygon?
Polygon is built to facilitate a future where different blockchains no longer operate in isolation, but instead as networks that are used in a broader, interconnected space. Its long-term goal is to provide an open and borderless world where users can communicate with decentralized products and services without the need to navigate through intermediaries and pass through various barriers.
It aims to create a hub that different blockchains can easily connect to, while simultaneously overcoming some of their individual limitations, such as high fees, poor scalability, and limited security. Polygon uses a variety of technologies to achieve this vision, including:
- Proof of Stake
Polygon's main chain is an Ethereum sidechain known as the Matic POS chain, which adds a proof-of-stake security layer to the blockchain running on Polygon.
- Plasma Chain
Polygon uses a scaling technology known as plasma to move assets between the main chain and other chains through plasma bridges.
- ZK-rollups
Used as an alternative scaling solution to roll up a large number of transactions off-chain using Zero Knowledge Proof for a public final record on the Ethereum main chain.
- Optimistic rollups
A solution running on Ethereum to facilitate instant transactions through the use of fraud proofs.
As you may have noticed, Polygon plans to offer more than one scalability solution to reduce transaction fees.
What is blockchain bridge?
The lack of interaction between different blockchains is known as one of the problems of blockchain technology. Blockchain bridges are software used to transfer tokens from one blockchain to another. This software provides a service for users, which is performed in both networks and simultaneously the act of issuing and transferring tokens. When the user wants to move his tokens between two networks, the bridge selects them in the main network and transfers them to the desired network.
Methodology
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In this dashboard, the first transaction destination of users who have bridged their assets from Ethereum to Polygon is analyzed.
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In the first step, the number of users who have bridged their assets from Ethereum to Polygon has been investigated. For this purpose, the following contract is used:
Polygon Bridge Contract: 0xa0c68c638235ee32657e8f720a23cec1bfc77c77
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In the next step, the addresses and contracts that are the first destination of Polygon users after bridging are also examined and the top 10 addresses or contracts are introduced in each case. The following tables are used for this purpose:
ethereum.core.fact_event_logs
polygon.core.fact_event_logs
polygon.core.dim_labels
Data Analysis
Since its inception, more than 795k unique users have bridged their assets from the Ethereum network to Polygon. Of these, about 645kusers have bridged ETH and about 150k users have transferred ERC20 tokens to the Polygon network. Examining the addresses that have used the bridge for the most times shows that the 0xfa35113163bfd33c18a01d1a62d4d14a1ed30a42 address has used Polygon Bridge the most with more than 7k transactions. Address 0x90f1cb932dbf94385434c40d53df3727f00e50b1 is in second place with about 2.9k transactions. Examining the number of distinct users who used the bridge daily shows that:
- On June 10, 2021, the largest number of users have used Polygon Bridge.
- 6,548 users → ETH
- 2,868 users → ERC20
- Most users who have bridged ETH to Polygon → May 7, 2021 → 6672 users
- The number of ETH bridges to the Polygon network was increasing almost until the beginning of February 2022, but since this date, the graph trend has been downward.
- The highest number of users who have bridged ERC20 tokens to Polygon is on June 15, 2021 (4296 distinct users)
At this stage, we want to analysis the addresses and contracts that have been the destination of the largest number of users for the bridge from Ethereum to Polygon.
Examining the charts below shows:
- The largest number of users have used Matic, WMATIC and WETH contracts in their first transaction after bridging their assets from Ethereum to Polygon.
- Matic, WETH and USDC are the three contracts with the highest number of transactions.
- Examining the addresses that were the destination of the first transaction of users after bridging shows that Null address was the destination of the largest number of transactions. Other addresses can also be seen in the '10 most popular first destinations' chart.
- 0x0000000000000000000000000000000000000000 → burn address
- 0xffffffffffffffffffffffffffffffffffffffff → burn address
- Examining the addresses labeled 'dex' also shows that ‘‘balancer v2’’ and ‘‘sushiswap crv/weth pool’’ were the destinations with the highest number of transactions.
- Now, if we categorize the first destination of users after bridging in terms of event type, we will find that ‘‘Transfer’’, ‘‘Approval’’ and ‘‘Swap’’ events are the most popular destinations of users in their first transaction after bridging to Polygon.
- Transfer → 103k users
- Approval → 79k users
- Swap → 54k users
Conclusion
By changing the strategy and supporting other scaling methods, Polygon has recorded positive developments and has been welcomed. The ecosystem of this project has grown well and many decentralized programs have been implemented on it. The effect of positive changes in Polygon can be seen in the growth of the price of the functional token of this network, Matic, in the downward conditions of the crypto market. If Polygon can achieve his goals, great things will definitely happen in the future. In this article, the first transaction destination of users after bridging assets from Ethereum to Polygon was analyzed and the results were presented in each part.
In the first transaction of users after bridging, MATIC, WETH, WMATIC and USDC contracts have been the most popular among users, on the other hand, Null address has been the destination of many first transactions. Among the various events, Transfer, Approval and swap have attracted the attention of users more than other events.