Polygon: Building the First Layer2 Solution Aggregator on Ether

After years of iterative development, Polygon has grown from an Ethernet-based sidechain scaling solution to the first Layer2 scaling solution aggregator, designed to be a protocol and framework for building and connecting Ethernet-compatible blockchain networks.

Blockchain networks have long faced problems such as limited scalability, network congestion and high gas fees, with the Ethernet chain being particularly prominent. Various Layer2 scaling solutions have been introduced in the market to solve the above problems. However, it is difficult for a single Layer2 solution to meet the comprehensive needs of security, high scalability, low latency and low gas fee. After years of iterative development, Polygon Network has been able to achieve these comprehensive needs by creating an aggregator of multiple Layer2 scaling solutions.

Current Issues

Blockchain platforms face network congestion, low throughput, limited scalability, and high gas fees. And with the explosion of DeFi, these problems appear even more intractable.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Etherchain network congestion in February Source: txstreet)

As the above chart shows, in February, the average gas of the ethereum chain was as high as $153 and the network was facing serious congestion.

Although, various Layer2 scaling solutions have been launched in the market, it is difficult to balance the comprehensive needs of security, efficiency and low fees with one single Laye2 solution. In contrast, multiple Layer2 aggregators built on Ethernet are expected to achieve these comprehensive needs.

Introduction of Polygon Network

The Polygon Network was formerly known as the Matic Network, which was launched in 2017.The main goal of the Matic Network is to build an Ethernet scaling architecture, which it achieves through the Matic PoS chain and Plasm sidechain scaling solution.

In February 2021, it was officially upgraded to Polygon Network, upholding the mission of improving the Ethernet ecosystem with a new scaling scope and technical goals.

Unlike the Matic Network, Polygon Network aims to transform Ethernet into a true multi-chain ecosystem that will benefit from a variety of Layer2 scalability beyond the initial implementation provided by the Matic Network. universal and flexible scaling framework for the Ethernet chain.

Key Features

The Polygon network has the following key features.

Scalability: Polygon enables developers to choose between different Layer2 scaling options based on the needs of their projects by providing a modular SDK (Software Development Kit). In the future, Polygon builds Layer2 aggregators that will support multiple Layer2 solutions, including Matic Pos chains, Optimistic Rollups, zkRollups, Validium, and more.

Transaction security: Polygon moves the complex computational process to the sidechain and stores the results on the Ethernet chain, while using the Polygon framework and PoS verifier network to ensure asset security, i.e., the ability to transfer on-chain assets by sending off-chain messages.

High throughput: Unlike the 14TPS network throughput of the Ethernet chain, the Polygon network has 7200+ TPS to meet the transaction demand.

User experience: The average confirmation time of Polygon network is about 1-2 seconds, which effectively solves the problem of slow confirmation of Ethernet transactions. In addition, the concise UX from the main network to Polygon chain together improves the user experience.

Low transaction fee: The transaction fee of Polygon network is extremely low, less than 1/1000 of the fee of Ethernet chain, which effectively solves the pain point of high gas fee of Ethernet network.

In addition, since Polygon is mainly built based on the Ethernet chain, it has very low development and learning costs for developers of the original Ethernet ecosystem, and can be seamlessly integrated. This makes it easy to adopt and scale Polygon ecology.

Market Analysis

Since May 19 of this year, DeFi lockup has suffered an extremely rapid decline, with $60.67 billion as of now, far from recovering to its previous high.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(DeFi chain lock total Source: defipulse)

In contrast, Polygon’s chain lock volume also fell on May 19, but then quickly repaired its previous highs and showed a stronger overall increase.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Total Polygon on-chain locked positions Source: defilama)

At present, Polygon’s locked positions account for about 1/5 of DeFi’s total locked positions, which shows that many original ethereum on-chain projects are gradually deploying to Polygon network, which also reflects the market’s recognition of it. As Polygon aggregates more Layer2 scaling solutions, it will attract more projects to deploy in the future.

Heat Analysis

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Number of Polygon Twitter users Source: Twitter)

Polygon has 473,000 Twitter followers , while Telegraph Group has 66,100 subscribers and Discord has 17,800, making for a large overall media presence.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon Twitter search Source: socialbearing)

Polygon’s Twitter activity is relatively high, with a 56% retweet rate and mostly European and American groups.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon Daily Deal Count Source: polygonscan)

Polygon’s overall daily deal count trend climbed, reaching a high of 9,177,310 deals on June 16.

Polygon Design
The Polygon Network is implemented through two main components: the Poly framework and the Poly protocol.

Polygon Framework: provides developers with a rich set of functional modules (pluggable consensus, pledge, governance, EVM/Ewasm, execution environment, etc.), as well as the ability to deploy pre-defined Ethernet-compatible networks with a single click.

Polygon protocol: provides “security as a service” and the ability to pass messages between any two Polygon chains and between Polygon and Ethernet chains.

Polygon Chains
Independent Chains

Independent chains, blockchain networks that are fully sovereign and compatible with Ether. These networks are fully responsible for their own security, i.e. they have their own pool of validators. It offers the highest level of independence and flexibility, but also requires trade-offs for the creation of the verifier pool.

Polygon: Building the First Layer2 Solution Aggregator on Ether

Currently, the main independent chains are Matic Pos chain, and more side chains and enterprise chains will be integrated in the future.

Secure Networks

Secured Chains, or two-tier chains, are blockchain networks that use “security as a service” rather than creating their own pool of validators. The service can be provided directly by Ether (through proof of fraud or proof of validity) or by a pool of professional verifiers (similar to Polkadot’s “shared security”). Secure chains provide a high level of security, but at the expense of some independence and flexibility.

Polygon: Building the First Layer2 Solution Aggregator on Ether

Currently, in addition to the completed Matic Plasma, Polygon will support more Layer 2 scaling solutions in the future, such as Optimistic Rollups, zk Rollups, Validium, etc. This will make Polygon the first Layer 2 aggregator on the Etherchain.

Layered Architecture

The protocol architecture contains 4 abstraction and composite layers that can be used in various blockchains to solve a wide range of tasks.

Execution layer: interprets and executes transactions agreed upon in the Polygon network. It has primarily an execution environment (pluggable virtual machines) and execution logic (ethereum smart contracts).

Network layer: a set of autonomous block chains that provide interoperability, including block generation, consensus and transaction collation. Networks can connect to each other and exchange arbitrary messages using the Polygon protocol.

Security layer: a conditional, non-mandatory layer. manages the set of validators responsible for blockchain security and authentication. It can be implemented both as a meta-blockchain running in parallel with EtherChain and working directly on the EtherChain.

Ethernet layer: is a set of Ethernet smart contracts that provide message relaying, integrity checking, collateralization and justice resolution functions.

Pass-through related

Type: ERC-20

Total number of issues: 10 billion

Circulation: 6,293 million

Pass Usage: Collateral passes, transaction fees, governance and rewards.

Pass allocation

MATIC completed its external sales in 2019 and was one of the most popular IEO projects that year.

MATIC passes will be fully released in October 2022.

Team Background
The Polygon core team consists of 15 members, including three co-founders, six developers, two marketing specialists, and a product manager.

Below is information on some of the members.

Jaynti Kanani, Co-founder and CEO

Kanani holds a Bachelor of Engineering degree from Dharmsinh Desai Institute of Technology and experience as a data scientist at Housing.com, and was one of the core contributors to the first Plasma MVP implementation. He was also involved in the first Node implementation of the Walletconnect protocol and contributed to Web3 and developer ecosystem tools.

Sandeep Nailwal, Co-founder and COO

Nailwal, holds an MBA from one of the top business schools in India. He is a former consultant at Deloitte and former CTO of Welspun Group’s e-commerce division, in addition to being the co-founder and CEO of ScopeWeaver.com.

Anurag Arjun, Co-founder and CPO

Arjun previously served as AVP of Iris Business and as a serial entrepreneur involved in several projects.

Anthony Sassano, Advisor

Anthony was previously a co-founder of EthHub and a product manager at Set Labs.

Pete Kim, Advisor

Kim was previously Head of Engineering at Coinbase Wallet.

Investment Institutions

Among them, Coinbase Ventures led a seed round in late April 2019, and by 2021 a new seed round, led by Dallas Mavericks owner Mark Cuban, aimed at enabling Polygon’s integration with Lazy.com, the NFT digital art gallery.

Ecological Development
Since Polygon completed its upgrade in February this year, its ecology has expanded rapidly, with a number of projects from the original ethereum chain migrating to Polygon.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon Eco View Source: Web)

Citing data from DappRadar, Polygon currently has more than 158 Dapps. For the sake of space, here we list some of the key items in the section for a brief introduction.

Wallet category
Polygon Wallet V2, a natively supported wallet

In addition, there are many original Etherchain wallet applications developed to support Polygon, as shown below.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon supported wallet apps Source: awesomepolygon)

Support for Polygon has been developed by well-known wallets such as MetaMask, TokenPocket and Math.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon ecology of prophecy machine projects Source: awesomepolygon)

A number of well-known prophecy machine projects, such as ChainLink, Band Protocol and API3, are now open to Polygon.

DeFi class

AAVE protocol, which has been deployed on Polygon chain since April 2021, provides lending services for users of Polygon ecology, and already supports lending services for assets such as MATIC, DAI, USDC, USDT, WETH, WBTC and AAVE.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon version of AAVE Source: app.aave)

As of today, the Polygon version of the AAVE market is over $7.618 billion, accounting for more than half of the size of the ETH version of the AAVE, and this figure is still growing.

Polygon: Building the First Layer2 Solution Aggregator on Ether

(DEX natively supported by Polygon Source: DappRadar)

Among other things, QuickSwap is the first decentralized trading platform native to Polygon, and as a fork of Uniswap V2, has a similar UI and operating habits to Uniswap, while also having cheaper transaction costs and the cost of providing liquidity. It can ensure that users of any size can trade or offer LPs to their heart’s content without having to worry about costs such as gas fees affecting profits.

In addition, several leading DEXs from the original Ethernet chain (and even DeFi), such as SushiSwap, 1inch and Curve Finance, have been successfully deployed to the Polygon chain.

NFT+ Games

Polygon: Building the First Layer2 Solution Aggregator on Ether

(Polygon-backed NFT+ game project Source: awesomepolygon)

Among other things, OpenSea, the world’s largest crypto digital collectibles marketplace, has deployed an initial version of Polygon. It also has popular games such as Aavegotchi, NIFTEX, Decentral Games and ZED RUN.

Summing up
A project’s ability to ultimately thrive depends heavily on the philosophy and will of the core team. polygon’s core team, with no splits in the startup team since its inception in 2017, has laid a solid foundation for the project’s iterative development.

Polygon: Building the First Layer2 Solution Aggregator on Ether

In the intervening years, Polygon has evolved iteratively from a sidechain solution addressing ETH scaling to the Layer2 Scaling Aggregator architecture. As of today, Polygon’s scaling solution has been widely adopted by over 150 Dapps, approximately 215.8 million transaction strokes, and approximately 15.34 million unique wallet users.

The Polygon team is positioned to build the Polygon Network into a framework of scale-out solutions to accelerate adoption in the ethereum ecosystem. the Polygon Network will offer a variety of Layer2 scale-out solutions, including Optimistic Rollups, zkRollups and Validium, enabling applications built on the applications built on the Polygon Network to choose one of these solutions based on their desired level of security.

Until ETH completes its 2.0 upgrade, the Polygon network is an important ecology for the already successfully implemented Layer2 track, and its efficient performance, low transaction costs and clean UI will attract more and more projects to deploy to the ecology. With the iterative upgrade of the ETH chain and the maturity of the multi-chain ecology, Polygon is expected to help transform the ETH chain into the “blockchain internet” in the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/polygon-building-the-first-layer2-solution-aggregator-on-ether/
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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