One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Summary:

  • Polygon is a blockchain internet company focused on scaling Ethereum with a portfolio of Zero Knowledge technologies.
  • The company is actively developing seven scaling solutions, ranging from various ZK Rollups to sidechains to engineering infrastructure such as software development kits (SDKs).
  • As the ZK-based scaling solution goes live in 2022, Polygon will greatly benefit from an ecosystem of 7,000+ dapps in DeFi, Metaverse, NFTs, and Gaming.
  • Polygon’s corporate growth strategy includes leveraging partnerships with venture funds, managing its own NFT/gaming ecosystem, and running an internal investment fund tasked with finding promising crypto projects.
  • Upcoming milestones for Polygon include more business partnerships with existing protocols, as well as a redesign of the MATIC token to better fit the company’s future plans.
  • Polygon’s global Web3 ecosystem benefits greatly from India’s thriving Web3 tech talent. Polygon offers developer training, collaborations with leading universities such as Indian Institute of Technology (IIT), and hackathons to expand the developer talent base and incubate high-quality Web3 startups in India and abroad.

The crypto industry has come a long way in the past two years. In the summer of 2020, DeFi primitives came to the fore in the so-called “DeFi Summer”. The following year, NFTs became popular — first as profile pictures, then community tokens, and now revenue-generating use cases like music and gaming.

Naturally, there has been a surge in users with increasing interest in blockchain. The total value locked (TVL) of the entire smart contract network rose from $500 million since the start of the pandemic to $170 billion two years later. More importantly, the growth of cryptocurrencies is only expected to continue with further interest in the Metaverse, asset ownership, and unbanked banking.

While investors have all benefited from the maturity of cryptocurrencies, the industry’s expansion has not been without growing pains. Notoriously, current blockchain infrastructure struggles to support user growth. Transaction throughput slows and network fees soar. Ethereum in particular has difficulty handling the load of transactions submitted to its blockchain. According to Etherscan, the average gas cost jumped from 10 gwei in March 2020 to 60 gwei two years later – and this does not take into account the time period when gas prices have been hovering around 150 or even 200 gwei in 2021, which highlights the fact that The need to improve infrastructure.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Therefore, an emerging consensus that we are seeing among investors is the need for a cross-chain ecosystem . In other words, a single blockchain may not be enough to support everything a user needs. By distributing work to multiple entities, the total amount of work required for a single blockchain will be reduced. If investors are right, building a cross-chain world is the way to achieve the scale needed for the first billion users.

This report will focus on a major component of Ethereum’s cross-chain scaling efforts: Horseshoe (Polygon Technology).Key sections of this report include an overview of the company, a brief introduction to ZK Rollups, Polygon’s ecosystem of projects, and the company’s upcoming roadmap.

A multi-chain Ethereum world

Polygon Technology, better known as Polygon, is building a series of platforms for blockchain infrastructure, especially the Ethereum ecosystem. Its products are designed to support the growth of Ethereum as the network expands its user and application base. Notably, Polygon’s particular focus on Ethereum reflects the company’s core belief in the network as the center of the future cross-chain paradigm.

In the bigger picture, Polygon competes in what we should call the blockchain-as-a-service industry. Along with competitors such as Starkware, Arbitrum, Loopring, and Matter Labs, the startups have created solutions designed to enhance blockchain scalability by increasing network throughput and reducing transaction costs.

Currently, the lack of a one-size-fits-all answer to blockchain scaling means that every startup’s solution – be it Optimistic Rollups, Zero-Knowledge Rollups (ZK Rollups), or other alternatives – has a place in the current ecosystem. This competing research effort is what Polygon co-founder Mihailo Bjelic used to call “a hundred flowers blooming.”

Polygon started in 2018 as a joint effort of Bjelic (who is experimenting with Plasma rollups) along with Jaynti Kanani, Sandeep Nailwal and Anurag Arjun, the latter three who have been working on another scalable blockchain, Matic Network. At the time, this joint entity combined several products: (1) a blockchain SDK development framework developed by Bjelic and (2) Plasma rollup and Matic sidechains powered by MATIC tokens. Unfortunately, blockchain researchers discovered data availability issues shortly thereafter (discussed further in the report later), causing Plasma to be deprecated by other solutions. The resulting period of time allowed the team to focus on the Matic sidechain, the SDK framework (later renamed Edge), and look for next steps.

Around February 2021, the team announced the rebranding of Matic Network to its current Polygon and announced its strategy to become the cross-chain hub of Ethereum. Its new goal is to be a company that offers a lot of multi-chain services. Delivering an emerging suite of products will be a new focus for the company, starting with a user-facing product that has survived from the start: Matic Network, now Polygon Proof-of-Stake (PoS).

First product: Polygon PoS sidechain

Users may already be familiar with Polygon PoS. This sidechain has been around for almost two years. It launched ahead of DeFi Summer and fully seized the opportunity in May 2021 when industry curiosity about decentralized applications exploded.

Given the company’s efforts around Layer 2 scaling, a lot has been done on the technical classification of Polygon PoS. We believe that characterizing this current iteration of the PoS chain as a layer 1 sidechain is an important distinction, mainly due to the fact that the Polygon network does not inherit security from Ethereum nodes and has its own set of validators.Regardless, this EVM-compatible network is an option worth exploring for users looking for affordable transaction costs; Services are provided on PoS chains at a fraction of the gas cost of Ethereum.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

The graph above highlights the difference in average transaction costs between Polygon PoS and Ethereum. The data presented is astounding. The average cost of Polygon PoS is a fraction of a dollar, while users often pay $20 or more on Ethereum. If we assume that every transaction completed on this PoS chain over the past year has been made on Ethereum, users will pay nearly $15 billion more in total transaction costs.

Now, it is important to know that these figures are influenced by the lower price of MATIC relative to ETH. If the displayed costs are adjusted to US dollars, the absolute cost on this PoS chain is lower than Ethereum, but measured in gas price, the difference is not significant. Still, this PoS chain is a great option for users who want to avoid the high costs of Ethereum today. This is also a big reason why sidechains process more daily transactions than Ethereum — including peaking at 4x more than Ethereum — and have attracted 100+ million wallets to date.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Reaching those numbers is a milestone in itself, but one might say it’s just an appetizer for Polygon’s larger ambitions. As we saw above, sidechains do not improve the scalability of blockchains like a layer 2 solution like rollup. That’s why Polygon is dedicating its resources to Layer 2 scaling and ZK Rollups to find solutions that increase throughput and reduce the amount of gas required to conduct transactions. Polygon’s move has resonated across the industry as both leading technology and crypto-native investors have chosen to take a seat at the negotiating table. In fact, well-known investors such as Sequoia Capital India, Andreeson Horowitz (A16z), Tiger Global, Union Square Ventures (USV), Galaxy Digital and others have backed the company, demonstrating confidence in the team and alignment with the company’s vision.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Polygon’s roadmap includes the development of seven product solutions, ranging from the aforementioned PoS sidechains to L2 Rollups and other blockchain infrastructure. In total, Polygon has committed over $1 billion to acquire promising projects, invest in research, and create an Ethereum scaling ecosystem. Since a large part of Polygon’s future is tied to the adoption of ZK technology, it’s important to understand how it works before reading the rest of the report.

A Brief Introduction to Zero-Knowledge Rollup (ZK Rollup)

ZK Rollups are one of the two major categories of Layer-2 rollups, alongside Optimistic rollups. The core idea of ​​ZK Rollups relies on cryptographic proofs to verify changes in network state before tying them into the Ethereum blockchain.Therefore, some people refer to ZK Rollups as “validity proofs”. This is in stark contrast to Optimistic rollups, which “optimistically” assume all transactions are correct and have validators on the mainnet check for fraudulent transactions for a period of time. Optimistic rollups are also known as “fraud proofs”.

Let’s take a deeper look behind the ZK Rollups and see why they are so promising. The basic premise behind ZK Rollups is to have third-party operators batch transactions together, rather than verifying each transaction individually – hence the “roll-up” taxonomy – to increase the overall processing power of the network. Changes in the state of the blockchain are submitted to validators on the mainnet for checking in the form of ZK proofs. Due to the ZK feature, validators can be assured of the validity of all submitted transactions by attesting without having to run each individual transaction.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

An important part of this process is the soundness of the proof, which ensures that a malicious prover cannot fool the verifier with false statements. Inferring this property for Rollup is simple: if all batch transactions are to be accepted on the blockchain, they must be valid. And since the mainnet needs to verify each transaction ZK, there is little interaction between the two chains, which makes gas cheaper and overall easier Rollup scaling.

Another core benefit of ZK Rollups is the network’s ability to instantly verify transactions. Automatic verification brings many benefits to users. The easiest is to be able to instantly transfer funds from the Rollup chain to the mainnet without waiting for someone else to check for fraudulent data as with Optimistic rollups.

The technology behind ZK Rollups is promising, but to be fair, it’s also worth mentioning that ZK Rollups have so far not lived up to expectations. This is an important caveat, as ZK Rollup’s launch on the Ethereum mainnet has not yet been fully compatible with the EVM. This is why almost all active Rollups to date use fraud proofs. However, some research plans are close, with some EVM-compatible ZK Rollups running on testnets in the first half of 2022, including those owned by Polygon. At the risk of sounding like a broken record, the long-awaited day appears to be coming.

Polygon’s product stack

Polygon’s product suite includes the aforementioned PoS sidechain and six ZK-enabled projects. Of the six, three of them (Hermez, Miden, and Zero) are direct ZK Rollups, another (Nightfall) is a privacy-enabled Optimistic rollup using ZK encryption, and the remaining two (Avail and Edge) are designed to help Build ZK and modular infrastructure. The diagram below lists the complete product suite and categorizes each product suite based on shared Ethereum security. Low-security products are similar to independent chains with independent validators, while high-shared security products are full Layer 2 Rollups that rely entirely on Ethereum. In the next section, we’ll introduce each product, starting with four ZK Rollups.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Polygon Hermez: Decentralized and Active

In August 2021, Polygon announced the acquisition of Hermez for $250 million, one of the largest blockchain network M&A transactions to date. The transaction was funded through Polygon’s native MATIC token in the company’s token pool. Previous holders of the Hermez native token (HEZ) were able to exchange their tokens for MATIC at a ratio of 3.5 MATIC tokens to 1 HEZ token. The result of the acquisition means that Polygon will be in charge of the newly formed entity, Polygon Hermez.

Of the four ZK Rollups in the Polygon suite, Polygon Hermez is the most actively used. This is the first open-source decentralized ZK Rollup to run on the Ethereum mainnet (though not ZK EVM compatible) and is available to the public from March 2021. Users deploy funds into the rollup network and can quickly and cheaply send funds between wallets as transfers and payments. Polygon Hermez is capable of processing up to 2,000 transactions per second, and that number is expected to be higher as Ethereum implements sharding sometime in 2023 after The Merge. In any case, the current effect of this product is to reduce transaction costs by more than 90% compared to normal mainnet gas fees.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Source: Polygon Hermez

Like Polygon’s other ZK Rollup products, Hermez has its own research focus. Hermez places great emphasis on decentralization. It is the only active layer 2 that does not require a centralized operator. While the centralization caused by the use of a decentralized sorter may seem insignificant, especially in the early stages of ZK Rollups, the long-term impact could be significant. As cited by the Polygon team, the transition from a centralized operator to a decentralized operator can be both operationally and technically challenging, giving Polygon Hermez a head start on the competition.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Polygon Hermez will release Polygon Hermez 2.0 in the future, a future iteration that combines existing ZK Rollup and ZK EVM implementations. The need for the latter is critical to scaling Ethereum, as non-ZK EVM Rollups can only handle token payments and token transfers. A ZK EVM-enabled blockchain will allow the network to process smart contracts directly on rollups and open up another avenue for innovation. The final product is expected to closely emulate the 50-70 instruction code available on the original EVM. The decision to stick with machine language-like opcodes allows engineers to port existing applications into Rollup, or easily create new ones when needed.

A testnet launch is expected sometime in the next three months (Q2 2022). The full release of Polygon Hermez 2.0 is expected to arrive sometime in the next quarter once testing is over. If this schedule remains the same, ZK Rollup enthusiasts will have a chance to see this expansion option take shape.

Polygon Zero: It’s all about speed

Polygon Zero was formerly known as Mir Protocol, a decentralized application project powered by recursive ZK proofs. In December 2021, Polygon announced the acquisition of the Mir Protocol team, seeking to combine synergies between the Mir project and the rest of Polygon’s technology stack. The deal is even bigger than the Hermez acquisition. The announced price is about $400 million, funded by cash and Polygon’s MATIC tokens.

As part of the Polygon ecosystem, the goal of the Mir team remains the same: to build the fastest ZK Rollup in the world.Unlike Polygon Hermez, which devotes most of its research resources to decentralization, Polygon Zero aims for speed.The best solution found so far is via scalable ZK-SNARKs, also known as recursive proofs.

Recursive ZK proofs speed things up by increasing the number of transactions that can be processed at any one time. We can make a comparison here: existing ZK Rollups typically require a lot of computational resources to generate proofs for batches with a large number of transactions; this is true for ZK Rollups that need to support general-purpose applications, and for those This is especially true for applications that slow down due to EVM compatibility. In contrast, efficient recursive ZK proofs allow processing to be distributed into more manageable blocks of concurrent work. Once each transaction is verified, the recursive algorithm goes through and aggregates all the proofs until they finally form a proof.The best way to imagine this is to use a pyramid shape, where the base layer represents all transactions. As each transaction is proven, it is sent upwards until they all peak at the top. The final proof can be sent to the mainnet faster and more cost-effectively than current alternatives.

Polygon Zero is able to do this with Plonky2. Plonky2 is a recursive ZK proof generator capable of generating a SNARK proof every 0.17 seconds, making Plonky2 the fastest recursive ZK prover in the world.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

It took years of research to invent this technology. The practical application behind recursive zero-knowledge proofs only started in 2014. In 2019, it took two minutes to generate each recursive proof. The slow proof generation apparently makes the technology useless for blockchain scaling. In 2020, the development of Plonky combined with a few other technologies brought the time down to 15 seconds. Plonky2 further reduces the time to 170ms, making it the fastest recursive ZK prover in the world.

That said, further research is required before Plonky2 goes live. A timetable has not been announced, but the Polygon team will provide more information as other prover breakthroughs are achieved.

Polygon Miden: STARKs are not SNARKs

Polygon’s next ZK Rollup is Miden. Unlike most ZK Rollups that use ZK-SNARKs, Miden uses another proof called ZK-STARKs. STARK stands for “Scalable Transparent Argument of Knowledge” and SNARK stands for “Succinct Non-Interactive Argument of Knowledge”. Given that SNARKs and STARKs have very close names, it is not surprising to learn about the similarities between SNARKs and STARKs. At their core are privacy and scaling technologies that provide applications with the ability to verify proofs more securely and faster.

Where they differ is in the details. STARKs have traditionally not required an initial setup process between provers and verifiers, although some modern SNARKs have also found ways to remove this process. What SNARKs can’t match is the ability to deal with the threat of quantum computing: SNARKs are vulnerable to quantum computing attacks, while STARKs use leaner encryption that is provably quantum-safe.

The tradeoff with using STARKS is that larger proofs are required, resulting in higher gas costs and lack of recursion.Implementing the latter may be possible, but has not yet been confirmed. Further research on SNARKs and STARKs will continue to open new doors for Layer 2 proofs.

As shown in the figure below, the transaction Rollup process is similar to the traditional ZK Rollup, replacing the usual SNARKs with STARKs.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Source: Polygon Miden

The advantage of Miden is that it creates a Miden VM that is ZK-STARK compatible with EVM. The Miden VM is a general-purpose ZK virtual machine that allows developers to take advantage of the platform’s full Turing-complete capabilities. In addition, multilingual support is provided for developers. These languages, including Solidity, Move, and Vyper, are compiled into Miden assembly language for the VM to read.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Development of the Miden VM started in 2019 with a library called genSTARK, which allowed developers to create simple STARK provers. Distaff VM (an early STARK-based VM) and Winterfell (an upgraded iteration of genSTARK) continue to improve, such as full Turing completeness. The current iteration of the Miden VM is a public v0.1 prototype that combines the capabilities of the Distaff VM and Winterfell and is due out in November 2021. Developers interested in building with the new virtual machine can experiment with the product’s capabilities. The v0.2 prototype is expected to be released in Q2 2022. Testnet development should continue the project until the end of the year, after which a mainnet deployment is expected sometime in 2023.

As mentioned in the introduction to ZK Rollup, ZK Rollup does not provide privacy protection by default. That’s where Polygon Nightfall comes in. Nightfall is an Optimistic rollup enhanced with the privacy benefits of ZK cryptography. Here, the type of ZK encryption used in Nightfall is slightly different from general ZK Rollups; the former is used to promote data privacy, while the latter is used for transaction verification. The idea behind ZK Cryptography and Fraud Prevention Rollup stems from the need to provide businesses with a differentiated product that retains the privacy elements of ZK Cryptography while keeping transaction costs low.

Nightfall was originally created in 2019 by Ernst & Young, one of the big four audit firms, as a way to conduct private transactions on Ethereum. This is an important milestone as it marks the first time a large enterprise has actively participated in the development of Ethereum. In the years since, as the demand for privacy-safe blockchains has grown, EY has started looking for partners to help expand its offerings. The result is Polygon Nightfall, a collaboration between EY and Polygon to create a public-facing privacy-focused rollup that makes it ideal for businesses.

Enterprise transactions and operational tools benefit the most from such privacy features. Nightfall will also be legal and KYC compliant. The goal of the collaboration is to create a whitelist of companies that can access the network; when businesses conduct transactions, they need to provide proof of access confirming access before the privacy-safe transaction is completed.

EY’s corporate clients can already connect to Polygon Nightfall through the EY front-end portal. Nightfall is currently exploring ways to further expand the product. No specific timeline has been set for the roadmap, but both EY and Polygon hope to continue working with other enterprise-specific blockchains.

Polygon Avail: Ethereum Data Availability

Polygon Avail is the first of two Polygon architecture products. Avail is designed to address the challenges nodes face when dealing with malicious or incomplete data. In the blockchain world, these challenges are known as data availability issues , the same issues mentioned above that led researchers to abandon the Plasma rollup program. Common situations where this problem occurs include when nodes accept blocks with incomplete data or when nodes cannot verify the accuracy of transaction data in the network (i.e. blockchain censorship).

Polygon describes Avail as a solution to the data availability problem across the multi-chain Ethereum ecosystem. Avail is a data availability specific blockchain designed for standalone chains, sidechains and other scaling technologies – meaning the entire Avail chain is designed to store Ethereum “call data” tracking changes to the Ethereum state machine. No smart contracts will be deployed on Avail and no applications will be built. Instead, the whole purpose of Avail’s existence is to sort and store data to ensure that it is still accessible to the sampling process performed by light client nodes.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Source: Polygon Avail

In contrast to current blockchain architectures, the Avail network will focus on ensuring that complete transaction data is published, rather than verifying state changes. Unlike full nodes, light nodes do not download the entire block data, but instead prioritize a random set of data from each block to assess integrity. This process is called a data availability check.This is a technique shared by other data availability platforms, and can be done at a constant resource cost regardless of the size of the data.

In its final form, Polygon envisions a scenario where developers can create their own independent PoS chains and outsource network security to Avail. Operators on independent chains will send transactions to Avail for sorting and storage. This helps to bootstrap network security immediately, as complete transaction data is kept off-chain for easy access.

Avail is currently still in development, and the Polygon team has yet to announce key roadmap dates.

Polygon Edge: Focusing on developers

Polygon Edge, formerly known as Polygon SDK, is an open-source modular blockchain development framework built for engineers who want to create their own blockchains. The framework allows the creation of secure chains (layer 2 blockchains) and independent Ethereum sidechains.

Both options have their own advantages. Security Chain provides two unique features: easy bootstrapping for those with limited resources, and enhanced security on a layer separate from the mainnet. Enterprises without the resources to bootstrap new cryptographic protocols for security or looking to increase transaction throughput on their own networks may want to leverage edge frameworks to build secure chains. At the same time, sidechains require their own set of validators, ideal for businesses looking to maximize independence or community-based networks capable of supporting their own decentralized blockchain.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

Source: Polygon Edge

The diagram above represents the various components of the development framework. Each component, including known modules such as blockchain and consensus, and more obscure modules such as Libp2p, GPRC, and JSON RPC, represents a function within the technical architecture. Developers can modify these modules to suit their needs, combining them like building blocks to form a network. Polygon Edge supports both Proof-of-Stake (PoS) and Proof-of-Authority (PoA) as consensus algorithms.

Edge, an independent chain framework, will start rolling out in May 2021. The second iteration of the Secure Chain Framework is expected to take place in the near future. Products such as Polygon Edge align closely with Polygon’s arguments for a more advanced multi-chain Ethereum ecosystem, helping to address the pressing need for L2 communications and simplifying project deployment.

Polygon Enterprise Fund

As mentioned, the company is also actively encouraging protocols to use Polygon-enabled networks. Direct strategies include investing in founder teams, supporting project token economics, staking, governance, and leveraging the Polygon network for marketing campaigns.

Ecosystem Partnership

One of Polygon’s strategic efforts is to partner with active venture investors within the crypto community. Polygon maintains relationships with four organizations, though the company has no decision-making power to invest capital.

  • Polygon x Wintermute: Partnership with $20M Fund to Support Project Liquidity, Business Development and Token Exchange Listing Purposes
  • Polygon x 776: Partnership with $200M Universal Fund Investing in Web3 and Other Crypto-Native Applications
  • Polygon x Outlier Ventures: A Polygon-based accelerator designed to foster mentorship and collaboration with Outlier Ventures’ venture team
  • Polygon x StableNode: Partner with blockchain node management operators experienced in providing practical services such as staking and governance

Polygon Ecosystem Fund

The firm’s ultimate corporate development team is its Ecosystem Fund. Unlike the aforementioned partners, this ecosystem fund is Polygon’s own internal investment fund. Capital allocation decisions are strategically designed to facilitate the adoption of the Polygon blockchain.

The $100 million ecosystem fund manages all of Polygon’s corporate investments. This includes a joint investment with the Polygon Studios team below. To date, the fund has spent $15 million on 50 global projects. The team is still actively looking for investment opportunities.

Polygon Studios

In the summer of 2021, Polygon launched Polygon Studios, an in-house division aimed at attracting existing gamers to blockchain gaming. Polygon Studios partners with ambitious NFT projects and marketplaces to expand their user base on low-cost platforms.

Over 100,000 gamers and over 500 apps have joined. The team has announced partnerships with crypto-native projects like The Sandbox, Decentraland, and OpenSea, as well as traditional entertainment brands like DraftKings, Electronic Arts, and Atari. Funds from the Ecosystem Fund will also be used to invest in projects that benefit the company’s NFT/gaming initiative.

Leading Polygon Studios is Ryan Wyatt, who left his previous role at Google as head of Google Gaming Partnerships and YouTube Gaming. Wyatt began his professional esports career as a game commentator, which makes him uniquely qualified to lead the work at Polygon Studios.

leadership within the community

Apart from its reputation in the global crypto community, one must also focus on Polygon’s role in the Indian crypto community. The company’s status as an Indian start-up unicorn helps validate the industry in the eyes of skeptics and encourages more young people in the country to experiment with cryptocurrencies. This form of leadership by example is especially beneficial for the country’s thriving ecosystem, given the Indian government’s hot-and-cold relationship with the industry.

Polygon has also played an active role in investing in its community. Polygon regularly sponsors, mentors and judges hackathons in India. It is closely related to ETHIndia. In addition, the company has partnered with students to offer smart contract application engineering courses, and has partnered with several IIT institutions, IT Mumbai and other blockchain clubs at select Indian universities.

One article sees through the 7 major expansion products of Polygon chess game to build a moat for it

To demonstrate Polygon’s standing as a financial platform, we can compare the company’s valuation to India’s largest banks. Following this approach, Polygon would be the seventh largest financial institution. Of course, there are some major caveats with this type of analysis. On the one hand, Polygon does not provide direct financial services and operates more as a financial payment platform. Additionally, the startup’s ecosystem includes indirect financial use cases such as NFTs and blockchain gaming. That said, this quick and easy comparison really highlights the speed of Polygon’s rise and the level of investor expectations for the company going forward.

route map

Much of the Polygon team’s focus over the next few years will be enterprise rather than technology, which may indicate how satisfied the team is with the state of its product suite. As each product continues to research, test, or roll out its own extended solution, greater emphasis will be placed on finding the right partners and agreements to integrate into Polygon’s product network.

In public interviews, Polygon expressed interest in restructuring the company’s team structure and expanding partnerships with crypto projects, particularly in the NFT and gaming space. The headcount is expected to continue to grow, with the goal of doubling the workforce by the end of the year. While the exact details of each team’s organization are unclear, it’s important to note that Polygon wants to centralize key leadership while maintaining the decentralized autonomy of each team.

For investors, one of the most exciting updates will be the token redesign . The current MATIC token is a relic of the old Matic business and works with Matic’s network, Polygon PoS. Future tokens will have a new code and apply to all Polygon products. Given what we know today, use cases could include staking for enhanced security or the choice of blockchain operators. Interestingly, the token is not mandatory for all users, meaning there is no need to buy, stake, or hold it; for many, it may just be something in the background. Although the timing is unclear, Bjelic said he hopes to complete the token redesign sometime in 2022 .

in conclusion

There will be fierce competition in the block space in the coming years. The final winner will be determined by determining which has the best ease of use, transaction speed and transaction cost. The next stage in blockchain development means that core infrastructure is now more important than ever. Users around the world need a network that rivals Visa and Mastercard, a type of processing that can handle thousands of transactions per second.

Polygon is working hard to meet the demand with its suite of Rollup solutions. Its aggressive 2021 growth strategy, through acquisitions and joining different ZK projects, now ensures that Polygon’s product portfolio has something for everyone. If users want faster or more private transactions, choose Hermez, Miden, or Zero; if businesses are looking for privacy, it’s nightfall; if developers are looking for scaling solutions, Avail can ease the burden of data availability, and Edge It helps to build a new blockchain completely.

This set of products provides Polygon with an important moat. As long as it can attract projects to its platform, Polygon will remain a big player in the industry for years to come.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/one-article-sees-through-the-7-major-expansion-products-of-polygon-chess-game-to-build-a-moat-for-it/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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