The Polygon PoS chain is gearing up for a major upgrade on January 17, via a hard fork aimed at improving performance and predictability. Proposed changes include reducing gas spikes and fixing chain reorganization issues that have been identified by the community and the Polygon team as priorities for network development.
Besides the fork, Polygon (MATIC) also had an impressive start to the year, with a series of high-profile partnerships and launches with massive names like Disney and Reddit, as well as the launch of its web3-focused incubator. with Mastercard.
The MATIC token is currently up 14.12% in the last seven days and 1.4% in the last 24 hours as the The Broader Crypto Market Rally Halts For The Time Being.
Polygon Rigid Fork (MATIC) Details
The changes proposed by the hard fork aim to reduce the severity of gas spikes and address inefficiencies in chain reorganization with the goal of reducing time-to-completion (the time it takes for a transaction to be considered final and irreversible on the blockchain).
The first proposed upgrade aims to reduce gas spikes by changing the BaseFeeChangeDenominator from 8 to 16. This will help smooth out the rate of increase/decrease of the base fee (the minimum fee for block inclusion) when the gas exceeds or falls below the target gas. limits in a block.
The reasoning behind this change is that when the chain experiences high demand, base gas fees experience exponential spikes, which is neither normal nor good during peak demand on any blockchain protocol. So, by increasing the denominator from 8 to 16, the growth curve can be flattened, resulting in a more seamless experience when interacting with the channel.
The second proposed upgrade concerns chain reorganizations (reorganizations) by reducing the length of the sprint from 64 to 16 blocks.
What is a sprint and what impact does it have on the network?
When validators produce blocks, they do so in a sequence called a “sprint”. Sprint length refers to the number of blocks produced in a single sprint. By reducing the sprint length, the time a validator continuously produces blocks decreases, which decreases the chances that a secondary or tertiary validator (who hasn’t discovered the primary) will come in to produce blocks. which results in fewer reorganizations (“reorgs”) overall.
This means that a single block producer will produce blocks continuously for a much shorter time (~32 seconds) than the current one (~128 seconds). This will reduce the depth of reorganizations, making the chain more predictable.
What is a reorganization?
A reorganization, or “reorg” is a change in the history of the blockchain. This happens when a different chain that has accumulated more proofs of work than the current chain is added to the blockchain.
In a blockchain network, validators strive to maintain the integrity of the chain by reaching consensus on the order of transactions. At a point of sale staking protocol chain like Polygon, validators “stake” a certain amount of the native token to participate in the consensus process. If validators disagree on the order of transactions, it can lead to a split in the chain, with different validators working on different versions of the chain.
When this happens, the network will then “reorganize” to keep up with the chain with the most accumulated proof of work. Reorgs can happen for different reasons, like a validator producing blocks on an old version of the chain, or a bug in the protocol that causes the chain to break.
They can be confusing and unpredictable for users and developers, which is why the Polygon team is proposing changes to the sprint duration, with the aim of reducing the depth of reorganizations and making the chain more predictable. .
By implementing these changes, the Polygon PoS chain hopes to improve performance and predictability for users, validators, and developers.
What will be the impact of the hard fork on the price of MATIC?
In short, this hard fork is a major milestone in the development of Polygon and MATIC; it has the potential to dramatically improve network performance and increase its popularity among users and developers. In turn, this could lead to an increase in the price of MATIC as demand for the token increases.
If this event excites investors as much as other news from other projects in the space, we could see major price moves for MATIC in the coming days. However, if the crypto market the rally continues to lose momentum and potential buyers have already priced in this news, it is possible that the price of MATIC will not immediately benefit from the range.
Either way, from a long-term fundamental perspective, it’s clear that this hard fork will bring a lot of value to MATIC and the Polygon network, paving the way for further developments in the future.
Polygon (MATIC) Technical Analysis and Price Prediction
In technical terms, the current price of MATIC is reaching the $1 mark as the bulls try to break through this important psychological resistance. The Relative Strength Index (RSI) is at 57.32, showing that MATIC is in “neutral” territory and is neither overbought nor oversold. The next downside support is between $0.9418 and $0.9683, while the next resistance if the price breaks above $1 is between $1.31 and $1.33.
The Moving Average Convergence Divergence (MACD) shows upside potential, while the Ichimoku Baseline is at 0.9013; the volume-weighted moving average (20) is at 0.8750; and Hull’s moving average (9) is 1.0161. All of these indicate that MATIC is on an overall upward trend and could potentially benefit from the upcoming hard fork.
As always, investors should do their own research before investing money in cryptocurrency or other digital assets and take risk management measures such as setting stop losses.
Overall, MATIC has a lot of potential to increase long-term value as the Polygon team continues to roll out new features and updates that improve network performance. While it’s impossible to say exactly how much MATIC’s price will rise as a result of this event, long-term investors should keep an eye out for developments and changes occurring before and during the fork.