The Tie Webinars
[Recap] Polygon Q3 State of the Ecosystem
On July 5th, 2023, Colin Butler, Global Head of Institutional Capital, and Matt Blumberg, VP of Institutional Capital at Polygon, discussed Polygon’s Q3 2023 State of the Ecosystem with Joshua Frank, Co-Founder and CEO of The Tie. Polygon is a layer-2 Ethereum scaling solution with a focus on providing cheap and fast transactions, high functionality, and security.
The call focused on three topics:
- Polygon 2.0
- Blockchain Gaming
Watch the full replay below:
Polygon 2.0 is an upgrade that aims to unify and improve the various products and solutions offered by Polygon, offering ample, secure, and scalable block space. One of the enhancements in the upgrade is zkEVM, which enables easy deployment of contracts compatible with the Ethereum Virtual Machine (EVM) and aims to provide additional security.
Polygon announced that it is merging its PoS chain with its zkEVM chain as part of the Polygon 2.0 upgrade. This will create a single, unified chain that will be more secure, scalable, and efficient. The merger is expected to be completed in Q4 2023.
The unified chain will offer a number of benefits, including:
- Increased security: The merger will combine the security of the PoS chain with the security of the zkEVM chain, resulting in a more secure overall platform.
- Increased scalability: The merger will allow Polygon to support more transactions per second, making it a more scalable platform for decentralized applications (dApps) and other applications.
- Increased efficiency: The merger will reduce the cost of transactions, making Polygon a more efficient platform for users and developers.
Matt highlighted that the merger of the PoS chain and the zkEVM chain is a significant development to scaling Ethereum. It is a major step forward for Polygon and a testament to the team's commitment to providing a secure, scalable, and efficient platform for dApps and other protocols.
In addition to the merger, Polygon has also been making other progress on the Polygon 2.0 roadmap. For example, the team has been working on improving the zkEVM chain, including increasing the throughput and reducing gas costs. The team has also been working on developing new products and solutions, such as a unified liquidity layer that will allow users to interact across multiple chains without relying on bridges.
The goal is to foster innovation and simplify the process for developers to create secure blockchains instantly. While the Total Value Locked (TVL) on the zkEVM chain is currently lower compared to the main Polygon chain, it is expected to grow rapidly as more protocols and applications deploy on it. The zkEVM is considered more secure than optimistic rollups, offering faster withdrawal times, and frequent proof verification for enhanced asset security. Colin emphasized Polygon's significant investment in zero-knowledge technology to ensure top-notch, institutional-grade security.
Polygon continued to expand its partnerships in Q2, announcing partnerships with Franklin Templeton, Google Cloud, and Deutsche Telekom. Partnerships play a crucial role in showcasing how blockchain technology can foster innovation and enhance financial products and services. Colin believes that partnerships with institutions like Franklin Templeton and Google Cloud are crucial for garnering widespread support for blockchain technology because they simplify crypto for everyday users.
As a forward-leaning financial institution, Franklin Templeton has achieved success by working directly with regulators to produce compliant products. The tokenization of their OnChain U.S. Government Money Fund, represented by the token BENJI on Polygon, signifies the beginning of numerous potential innovations. Colin looks forward to collaborating with Franklin Templeton, recognizing their pioneering role in the integration of blockchain into traditional finance. Furthermore, Colin highlights the potential value that Polygon can provide to Franklin Templeton's clients such as around-the-clock trading and lower fees.
Google Cloud is a key partner in simplifying blockchain technology, making it easier for financial institutions to utilize Polygon's supernet. These supernets are the native scaling solution of Polygon, allowing for unique chains to be operated simultaneously with separate computing components. According to Colin, Google Cloud abstracts the more complex intricacies of blockchain technology, thereby enabling global adoption.
Polygon's partnerships aren't confined to technology companies alone. In an approach aimed at scalable mass adoption, Polygon has allied with household names like Starbucks, Nike, and Reddit, utilizing their massive userbases to swiftly and efficiently introduce users to the blockchain, without requiring a prerequisite understanding of the underlying technology.
Zero Knowledge Virtual Machines (ZKVMs) hold significant promise for driving the mass adoption of blockchain technology in gaming. Key collaborations, like the one with Immutable, play a crucial role in integrating blockchain into games. The integration of IMX grants Polygon developers access to Immutable's APIs and smart contract libraries, vastly simplifying the game development process. This partnership amplifies developers' control over 3D assets within gaming environments, enabling them to leverage the benefits of blockchain technology and create immersive gaming experiences. Ultimately, Matt B believes that gaming can be a powerful tool for onboarding users to web3, attracting millions of passionate gamers. He highlights the critical influence of these gamers in driving the adoption of blockchain technology.
Polygon's ecosystem has garnered praise for the flexibility it offers to developers. This flexibility allows developers to choose the most suitable environment for their gaming projects, ensuring they can fully utilize the potential of the blockchain's technology.
Challenges related to monetizing games and collecting digital assets, such as limited market access and lack of control, have historically hindered the growth of the gaming sector. However, with the emergence of blockchain, more efficient and interoperable markets are becoming a reality. Polygon has been at the forefront of enabling monetization in the blockchain space. Matt B cites the example of Roblox's currency exchange rate to highlight the need for efficient and interoperable markets. He explains how blockchain technology provides more efficient and transparent avenues for monetization, addressing historical challenges in the gaming industry.
Looking forward, the potential of Polygon 2.0 to reshape the blockchain shape and underpin various applications energizes Colin. He eagerly anticipates this upgrade, which promises improved scalability and efficiency. Colin predicts that Polygon 2.0 will pull in more users while nurturing innovation in the crypto space. Matt echoes this optimism, noting that the uptick in partnerships between crypto initiatives and renowned brands like Nike and Fortnite is encouraging for the industry's future. He views these collaborations as indicators of increasing consumer interest in crypto, and believes they help legitimize crypto in the eyes of regulators.
You can watch the full replay here:
Disclaimer: This report is for informational purposes only and is not investment or trading advice. The views and opinions expressed in this report are exclusively those of the author, and do not necessarily reflect the views or positions of The Tie Inc. The Author may be holding the token or using the strategies mentioned in this report. You are fully responsible for any decisions you make; The Tie Inc. is not liable for any loss or damage caused by reliance on information provided. For investment advice, please consult a registered investment advisor.
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