Polygon, Ethereum’s Swiss Army Knife
Ethereum’s Internet of Blockchains
It’s undeniable that the future of Web3 will not rely on a single blockchain. Instead, it will hinge upon an internet of blockchains.
The internet of blockchains is a belief that when Web3 matures, it will be a multichain reality where blockchains are connected and can interoperate with each other. This is because different projects, enterprises, and communities will have different requirements (e.g. some may be more focused on security, and some may be more focused on privacy). No single blockchain will be able to tune those parameters to cater to every requirement.
Polygon has a vision of building Ethereum’s internet of blockchains by providing an interoperable network that links together a variety of different scaling solutions such as Sidechains, Zero-knowledge (ZK) rollups, and Optimistic rollups, as well as offer a generalized framework to allow developers to create custom application-specific blockchains (AppChains) that leverage Ethereum’s security.
Polygon’s Ethereum Scaling Suite
The Polygon team’s thesis is that there’s no silver bullet for Ethereum scalability and that, in the long run, there will never be a one size fits all approach. So in February 2021, they rebranded themselves from the Matic Network to Polygon – a Layer 2 aggregator that would tackle Ethereum scaling from virtually every angle.
Polygon’s pivot was a major success, and since then, they have been the only team in the space that has placed a bet on virtually every Ethereum scaling tactic. Most other teams are focused on just one specific implementation, and in that position, they have put all their eggs in one basket. We tend to forget that the Ethereum scaling ecosystem is still developing and that the industry will still see many changes.
Polygon is not only a Proof of Stake (PoS) Sidechain but a suite of full-fledged Layer 2 scaling solutions that can offer projects and communities unique technical possibilities:
• Polygon PoS: a Sidechain with Ethereum Virtual Machine (EVM)-compatibility for scaling Ethereum. Polygon PoS is Polygon’s main product that can handle up to 7000 transactions per second and offers low-cost transactions. It’s currently the fifth largest blockchain in terms of Total Value Locked (TVL) with ∼$1.3 Billion, and its environmentally friendly infrastructure is exponentially less energy-intensive than Proof of Work (PoW) blockchains. Although it has its own permissionless validator set staking MATIC, it still relies on and commits itself to Ethereum, making it more robust than a straightforward sidechain.
• Polygon Edge: an out-of-the-box Software Development Kit (SDK) for building private and public EVM-compatible blockchains. Polygon Edge lets developers deploy standalone blockchains and provides them with all the tools needed to plug their projects into the existing Ethereum and Polygon ecosystems. Developers can therefore bootstrap new blockchains and benefit from the Polygon PoS network’s scalability while having full interoperability with Ethereum smart contracts and transactions, allowing them to checkpoint, transfer assets, and even stake on Ethereum.
• Polygon Supernets: an end-to-end service for launching and maintaining AppChains, powered by Polygon Edge. Polygon Supernets offer experienced dev shops that help projects launch customized AppChains configured specifically to their needs (e.g. dedicated block space and unique gas token). Additionally, Polygon Supernets enable projects to opt-in to shared security (e.g. via MATIC and Polygon PoS validators), maintenance, and upgrades. Hence, projects with substantial user bases or enterprises entering Web3 can focus on what they do best – their applications, without wasting any bandwidth on infrastructure.
• Polygon zkEVM (formerly known as Polygon Hermez): a Layer 2 ZK rollup with EVM-equivalence, considered as the holy grail for scaling Ethereum. Polygon zkEVM allows projects to plug into Ethereum’s user base while scaling with the best possible technology – ZK rollups. Despite being more performant in regards to throughput and gas fees, ZK rollups have been difficult for developers to build on due to its inability to easily integrate the EVM. With EVM-equivalence, developers can port over contracts deployed on Ethereum to Polygon zkEVM without needing to make any changes to the codebase. It’s also possible to use Polygon zkEVM to build ZK rollups on top of a ZK rollup (Layer 3s) that could act as AppChains and other interesting use cases.
• Polygon Zero: a Layer 2 composable zkEVM for horizontal scaling. Polygon Zero uses an incredibly fast recursive prover system called Plonky2 that enables ZK proofs to be validated faster than any other existing technology, which decreases the time it takes for transactions to reach finality.
• Polygon Miden: a Layer 2 Scalable Transparent Argument of Knowledge (STARK)-based ZK rollup for general purposes. Polygon Miden can handle up to 10,000 transactions per second and is safely programmable with support for arbitrary smart contracts written in Solidity and other programming languages.
• Polygon Nightfall: a privacy-focused hybrid Optimistic-ZK rollup for enterprises. Polygon Nightfall uses Optimistic rollups to reduce transaction fees and ZK proofs to enhance privacy, enabling efficient and decentralized business transactions (e.g. supply chain management) on private networks.
• Polygon Avail: a data availability-focused blockchain for standalone chains and off-chain scaling solutions. Polygon Avail is a modular blockchain that records transaction data for other blockchains and rollups so they can offload their data availability to Avail to improve their speed.
Polygon’s Business Development Focus
By announcing partnerships with one large Web2 powerhouse after the other, it’s no secret that Polygon’s business development ability is currently unparalleled in Web3.
Polygon has been the talk of the town on Crypto Twitter recently, with Reddit’s Polygon-based NFT avatar marketplace reaching 3 million wallets only a few months after it was launched; as a comparison, the top NFT marketplace – OpenSea, has ~2.3 million wallets. Reddit’s limited-edition avatars also have an 85% unique holder ratio, higher than the top NFT project – Bored Ape Yacht Club’s 64% unique holder ratio. These Reddit avatar holders, many of whom are newcomers to NFTs, are the first big success story in attracting millions of mainstream users to Web3.
Yet this huge development is only the latest example of a household name succeeding with Polygon. The complete list of Polygon’s Web2 partnerships to date (in alphabetical order) includes:
• Adidas: joined forces with Prada to launch an NFT collection called ‘adidas for Prada re-source’ on Polygon.
• Adobe: partnered with Polygon to allow artists to easily mint and showcase Polygon NFTs on Behance.
• Associated Press: partnered with Polygon to create a photography NFT platform called the ‘AP Marketplace.’
• Atari: leveraged Polygon to increase the scalability of the Atari Token, NFTs, and token-related products.
• Bentley: launched an NFT collection called ‘Bentley Genesis NFT’ on Polygon.
• Bulgari: launched an NFT high jewelry collection called ‘Beyond Wonder’ on Polygon.
• Burger King: launched a limited-time NFT game called ‘Keep it Real Meals’ on Polygon.
• Clinique: launched an NFT collection called ‘More Like Us’ on Polygon to champion individuality.
• Coca-Cola: launched an NFT collection called ‘The Friendship Box’ on Polygon for International Friendship Day.
• Disney: selected Polygon as one of six companies to participate in a Disney Accelerator program in an effort to break into Web3.
• Dolce & Gabbana: launched an NFT collection called ‘DGFamily Boxes’ on Polygon as the gateway to its exclusive luxury product line.
• DraftKings: partnered with Polygon to create its NFT marketplace called ‘Draftkings Marketplace’ and became a validator on Polygon.
• eBay: launched an NFT collection called ‘Genesis’ on Polygon featuring animated 3D renditions of iconic athletes.
• Hike: partnered with Polygon to turn its Rush Gaming Universe into a play-to-earn (P2E) game.
• HTC: integrated Polygon for its metaverse phone called the ‘Desire 22 Pro’, which comes with a crypto wallet.
• Liverpool F.C.: launched an NFT collection called ‘LFC Heroes Club’ on Polygon that gives fans exclusive access to holders-only experiences.
• Macy’s: launched an NFT collection called ‘Parade NFT’ on Polygon for its Thanksgiving Day Parade.
• Mango: launched three unique artworks and wearables on Polygon to commemorate the Metaverse Fashion Week.
• Mercedes-Benz: partnered with Polygon to create a data-sharing platform called ‘Acentrik,’ which lets enterprises buy and sell data.
• Meta: partnered with Polygon to let users post Polygon NFTs on their Facebook and Instagram profiles.
• MSP Recovery: partnered with Polygon to create a healthcare claims tokenization platform called ‘LifeChain.’
• Neowiz: partnered with Polygon to create a Web3 gaming platform called ‘Intella X,’ which will bring its popular gaming IPs to Web3.
• NFL: joined forces with Ticketmaster to send ‘NFL Virtual Commemorative Tickets’ to fans after attending select games.
• Nivea: launched an NFT collection called ‘Value of Touch’ for mental and physical health on Polygon.
• Nothing: integrated Polygon for its first smartphone called the ‘Nothing Phone 1’ to bring Web3 tech to mobile users.
• Opera: integrated Polygon into its Web3 browser with a built-in crypto wallet.
• Paramount: partnered with Polygon to create its NFT marketplace called ‘Paramount.xyz.’
• Prada: joined forces with adidas to launch an NFT project called ‘adidas for Prada re-source’ on Polygon.
• Reddit: partnered with Polygon to create an NFT marketplace for limited-edition avatars that provide owners with unique benefits.
• Robinhood: selected Polygon as the first blockchain to support its newly launched crypto wallet called the ‘Robinhood Wallet.’
• Shopify: integrated Polygon to let merchants easily mint and sell Polygon NFTs on their storefronts.
• Starbucks: partnered with Polygon to create their loyalty program called ‘Starbucks Odyssey,’ which lets members earn and purchase NFTs.
• Stripe: joined forces with Twitter to allow creators, freelancers, and sellers to be paid out with crypto via Polygon.
• Telefonica: partnered with Polygon to bring Web3-based solutions to its business clients.
• Ticketmaster: joined forces with the NFL to send ‘NFL Virtual Commemorative Tickets’ to fans after attending select games.
• Twitter: joined forces with Stripe to allow creators, freelancers, and sellers to be paid out with crypto via Polygon.
Polygon vs Alternative Layer 1s
Over the past few years, a wide range of alternative Layer 1s have emerged, trying to build their own internet of blockchains and disrupt Ethereum’s dominance.
However, a fundamental mistake when these alternative Layer 1s were initiated was the decision to build a separate ecosystem. We all know that Ethereum is absolutely dominant in terms of developer mindshare, tooling, and the ecosystem’s maturity, whereas alternative Layer 1s cannot utilize the network effects Ethereum already has.
Polygon, on the other hand, is building on top of Ethereum and providing scalability to Ethereum projects through its EVM-compatible chains. The Polygon team’s bet is that the internet of chains done right is Ethereum’s internet of chains because:
• If you’re competing as an alternative Layer 1, you must bring your own security to the table. If you’re building on top of Ethereum, you get to use Ethereum as the settlement layer, which is backed by Ethereum’s economic security and the value of ETH.
• With an alternative Layer 1, you have a blockchain that’s just starting to run and is still not battle-tested, so using it as a source of security for a whole ecosystem of chains can introduce some challenges. With Ethereum, you get the most battle-tested programmable blockchain in the world.
• When building an alternative Layer 1, you’re building a tech stack and ecosystem from scratch. But when you build a multichain ecosystem with Ethereum in mind, you can port over all of Ethereum’s tooling, wallets, infrastructure, smart contracts, and EVM as the global standard for programmable blockchains.
• As an alternative Layer 1, you can initially offer cheap transactions, just like Ethereum when it first started as an empty blockchain. However, as the activity on an alternative Layer 1 grows, it will eventually face the same scaling issues as Ethereum.
• For any alternative Layer 1, it will take years to reach Ethereum’s level of organic interest and form Ethereum’s digital nation. Ethereum was a perfect storm that happened, and it will be extremely hard to replicate its success no matter how much money an alternative Layer 1 has.
• By being an alternative Layer 1, you may not be able to fully carry over the values and ethics that crypto brings to the world. When you commit to Ethereum, you’re not only committing to the technology but also to crypto’s values and ethics.
Bringing the World to Ethereum
All blockchains today are monolithic, but they’re moving to a modular design with three different layers for the three core tasks all blockchains have to do – providing consensus and security (what’s true), guaranteeing data availability (what has already happened), and executing transactions (what’s happening).
Polygon is fully embracing the modular blockchain design, whereas most alternative Layer 1s are still pursuing a monolithic blockchain design where tasks are all done on the same layer. In the future, Ethereum will be the consensus layer, Polygon Avail will be the data layer, and Polygon rollups will be the execution layer.
With a significant developer and user base, multiple scaling solutions that could potentially onboard a lot of large brands, and a perpetual stream of high-profile partnerships that are bringing in mainstream adopters, Polygon seems poised to be a force within Web3 for the foreseeable future.