Introduction

We are thrilled to be part of Polygon’s ecosystem! The automatic network that was launched in June 2020 and one of the most important side-chains of Ethereum with the vision to scale Ethereum.

After numerous upgrades, Polygon proposes to move from PoS to a ZK-based validium, with a dedicated data availability layer, either way it will maintain the consensus of PoS as the foundational infrastructure.

In the following article we’ll explore Polygon PoS architecture, and how this new integration impacts SenseiNode.

Polygon sidechain

The Polygon sidechain is where transaction processing occurs and is the chain that offers a scalable and cost-effective solution. Public checkpoint nodes validate the sidechain's blocks, organizing them to achieve maximum throughput and minimal latency.

The Polygon PoS chain is a decentralized network of validator nodes, each contributing to block generation and consensus. Non-validator nodes, on the other hand, preserve the network's comprehensive block history, facilitate dApp communications, and more. This distributed control ensures that network modifications necessitate unanimous consensus, preventing unilateral changes and mitigating the risk of network forks.

Validators

Public checkpoint nodes

Public checkpoint nodes acts as the foundation of validators in the Polygon PoS architecture. They are responsible for transaction validation and checkpoint submission. When a transaction is initiated on the Polygon PoS chain, these nodes validate the transaction against the current state of the Polygon chain. After validating a set number of transactions, these nodes create a Merkle root of the transaction hashes, known as a “checkpoint,” and submit it to the core contracts on the Ethereum mainnet.

The role of these nodes is crucial as they act as a bridge between the Ethereum mainnet and the Polygon PoS chain. They ensure data integrity and security by submitting cryptographic proofs to the core contracts on Ethereum.

Validators are constantly updating their knowledge to validate transactions. On the Polygon Network, participants aspiring to become validators can do so by operating a Validator Node, thereby earning rewards and transaction fees.

Architecture

The architechture of Polygon PoS consists of a consensus layer called Heimdall and an execution layer called Bor.

In particular, the execution client side takes charge of snapshots and state syncing, network configurations, and frequently used commands when running PoS nodes.

On the consensus client side, nodes handle the authentication of account addresses, management of validators’ keys, management of gas limits, enhancement of transaction verifications, balance transfers, staking and general chain management.

Besides this two layers, Polygon as a sidechain, utilizes Ethereum as a third layer to deploy their staking contracts. Following up there is a more detailed explanation of these three layers.

The Polygon Network is broadly divided into three layers:

Ethereum layer — a set of contracts on the Ethereum mainnet.

To enable the Proof of Stake (PoS) mechanism on Polygon, the system deploys a set of staking management contracts on the Ethereum mainnet.

The staking contracts implement the following features:

• The ability for anyone to stake MATIC tokens on the staking contracts on the Ethereum mainnet and join the system as a validator.

• Earn staking rewards for validating state transitions on the Polygon Network.

• Save checkpoints on the Ethereum mainnet.

The PoS mechanism also acts as a mitigation to the data unavailability problem for the Polygon sidechains.

Heimdall layer — a set of proof-of-stake Heimdall nodes running in parallel to the Ethereum mainnet.

These nodes monitor the set of staking contracts deployed and commit the Polygon Network checkpoints to the Ethereum mainnet.

This layer handles the aggregation of blocks produced by Bor into a Merkle tree and publishes the Merkle root periodically to the root chain. The periodic publishing of snapshots of Bor are called checkpoints.

For every few blocks on Bor, a validator on the Heimdall layer validates all the blocks since the last checkpoint, creates a Merkle tree of the block hashes and publishes the Merkle root hash to the Ethereum mainnet.

Checkpoints are important for providing finality on the root chain (Ethereum) and for providing proof of burn in withdrawal of assets.

Bor layer — a set of block-producing Bor nodes shuffled by Heimdall nodes.

Bor is Polygon’s sidechain block producer — the entity responsible for aggregating transactions into blocks.

Bor block producers are a subset of the validators and are shuffled periodically by the Heimdall validators.

This execution layer operates based on principles derived from the Clique consensus protocol, and this model is characterized by predefined block producers who collectively participate in a voting process to appoint new producers, taking turns in block generation.

Block Producers for the Bor layer are a committee selected from the Validator pool on the basis of their stake, which happens at regular intervals and is shuffled periodically. These intervals are decided by the Validator’s governance with regard to dynasty and network.

The ratio of Stake/Staking power specifies the probability to be selected as a member of the block producer committee.

Each block producer at Bor is given a certain percentage of the transaction fees collected in each block. The selection of producers for any given span is also dependent on the validator’s ratio in the overall stake. The remaining transaction fees flow through the same funnel as the rewards which get shared among all validators working at the Heimdall layer.

Staking

In Polygon’s Proof-of-Stake (PoS) framework, participants can stake Matic tokens on a designated Ethereum smart contract, known as the “staking contract,” to become validators. Active validators on Heimdall are eligible for selection as block producers through the Bor module.

The staking module is responsible for handling all transactions and states related to validators on Heimdall. It's important to note that validators commit their tokens on the Ethereum blockchain to become recognized as validators within the system. They then execute transactions on Heimdall with the necessary parameters to reflect changes in Ethereum staking. Once a consensus is reached among the majority of validators regarding the stake adjustment, this information is recorded within Heimdall's state.

Rewards and staking incentives

In the Polygon ecosystem, validators pledge their MATIC tokens as a form of security for the network. In return for their contributions, they receive rewards.

Participants can engage as either a validator or a delegator. Validators are required to operate a full validator node and stake MATIC tokens, whereas delegators can simply allocate their MATIC tokens to a validator of their choice.

Interested in becoming a delegator? Stake your MATIC with us at the following link.

Why should you do it?

Engaging in staking serves as a way to becoming an integral part of the network, enhancing its security while also tapping into Polygon's economic model.

However, the interest of staking extends beyond these reasons, offering a secure method to earn rewards within the blockchain space.

Validator Rewards = Staking Rewards + Transaction Fees

This is distributed in a manner that aims to gradually reduce the reliance on staking rewards as the primary source of validator income.

Who benefits from the incentives?

The incentives are designated for individuals operating validator nodes and those who delegate their tokens to a preferred validator.

Key Considerations:

• Validators may impose a commission on rewards earned by their delegators.

• All staked funds are secured within a contract on the Ethereum mainnet.

• Validators do not have custody of delegator tokens.

Staking rewards

Rewards are distributed periodically to all signers. An additional aspect involves the submission of periodic checkpoints to the Ethereum mainnet, to encourage this critical task. Polygon incorporates the associated costs into the validator staking reward distribution, offering a bonus to the proposer responsible for the checkpoint commitment. The reminder of the rewards, after deducting the bonus, is shared among all stakeholders—proposers and signers—proportionally.

How to Stake MATIC with Our Validator

A comprehensive guide on how to delegate your MATIC to our validator is next. Go to the following link and take the steps detailed in the video for a seamless staking process.

Conclusion

The partnership between Sensei Node and Polygon marks a significant step in our journey towards blockchain decentalization and putting LATAM in the map. By integrating with Polygon's Proof-of-Stake framework, Sensei Node not only contributes to the network's security but also enhances its own strategic position within the blockchain ecosystem. This collaboration allows us to participate directly in Polygon's staking and validation process, aligning our operations with the forefront of blockchain innovation.

About SenseiNode

SenseiNode is the first blockchain infrastructure independent service provider in Latin America.

We automate and simplify the deployment and monitoring of nodes on leading protocols, providing access via our APIs to organizations looking to build their blockchain infrastructure with a high availability and low total cost of ownership.

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