Polygon 2.0: Embracing the Future of Layer 2 Scaling

Polygon 2.0 and its underlying ZK technology hold the potential to redefine Layer 2 scaling solutions, marking a new chapter in blockchain technology.‍

Polygon 2.0: Embracing the Future of Layer 2 Scaling
Written by
Chinmay Joshi
Published on
Nov 18, 2023
Read time

In the rapidly evolving world of blockchain technology, Polygon has emerged as a forerunner in providing Layer 2 solutions.

With over 7,000 decentralized applications (dApps) and 1.3 million daily active users, it has cemented its place among the most popular Layer 2 platforms.

On June 12, 2023, Polygon unveiled its ambitious plans for Polygon 2.0, a major upgrade aiming to transform the platform into the “Value Layer of the Internet.”

This comprehensive set of enhancements aims to address scalability, liquidity, and governance issues that have been limiting the adoption of Web3 applications.

Our Vision: A Liquid, Scalable, and Decentralized Layer 2 Protocol

Polygon 2.0 aims to redefine Layer 2 technology by developing a platform that can scale without limits, offer unprecedented liquidity, and ensure decentralization.

This will be realized by leveraging the power of zero-knowledge (ZK) technology and a revamped protocol architecture.

The beauty of ZK technology lies in its cryptographic method that verifies data without revealing the underlying details, enabling higher throughput without compromising security.

By integrating ZK technology, Polygon 2.0 aims to facilitate a higher number of transactions per second than Ethereum, thus ensuring optimal security.

Architectural Enhancements for Superior Performance

In pursuit of better scalability, liquidity, and decentralization, Polygon 2.0 will employ a new protocol architecture comprising four layers:

  • Staking Layer: Responsible for securing the Polygon 2.0 network.
  • Interop Layer: Facilitating communication between different Polygon 2.0 chains.
  • Execution Layer: Handling transaction processing on Polygon 2.0.
  • Proving Layer: Generating and verifying ZK proofs.

Polygon 2.0 Tokenomics: Introducing POL

In sync with these significant changes, Polygon 2.0 will introduce a new native token, POL.

POL will primarily be used to secure the network, pay for gas fees, and participate in the platform’s governance.

The total supply of POL will be 100 billion tokens, distributed as follows:

  1. 50% for the Polygon community through staking rewards and airdrops.
  2. 35% for the Polygon team and investors.
  3. 15% for the Polygon Foundation to foster ecosystem development.

Compared to its predecessor, the MATIC($0.772-2.426%) token, POL has been designed to encourage staking, network security, and ecosystem growth.

Upon the launch of Polygon 2.0, the MATIC($0.772-2.426%) token will be deprecated, with holders able to exchange their tokens for POL on a 1:1 ratio.

Tackling Scalability, Liquidity, and Governance Challenges

Polygon 2.0 promises to address some of the most significant issues that plague Web3 applications.

Scalability: Leveraging ZK technology, Polygon 2.0 can support a larger number of transactions per second compared to Ethereum, mitigating high gas fees and slow transaction times.

Liquidity: To tackle the fragmented nature of the Layer 2 ecosystem that impedes the movement of funds, Polygon 2.0 plans to create a unified liquidity pool accessible to all Layer 2 chains, enhancing the user experience of Web3 applications.

Governance: Unlike its centralized predecessor, Polygon 2.0 will adopt a decentralized governance model, offering all users a say in the platform’s operations. This democratic approach aims to foster trust and drive adoption.

The Evolution from Polygon PoS to zkEVM Validium

A major milestone in Polygon’s journey is the transition of Polygon PoS to a zkEVM validium — a decentralized Layer 2 solution secured by ZK proofs.

This upgrade promises enhanced security, superior performance, and increased decentralization, aligning perfectly with the vision for Polygon 2.0.

The Untold Story of Polygon ZK: A Journey Towards Mainstream Adoption

The genesis of Polygon ZK, a Layer 2 scaling solution for Ethereum powered by ZK technology, was a long and arduous journey.

Initiated in 2019, the Polygon team explored numerous potential ZK technologies but struggled to find a solution that fulfilled their requirements.

In 2020, the team developed their in-house ZK solution, “Hermez,” marking a significant breakthrough.

The subsequent acquisition and rebranding of Hermez as Polygon ZK in 2022 were pivotal in the development of this cutting-edge technology.

Now, Polygon ZK, the first ZK-based Layer 2 solution to achieve mainstream adoption, is anticipated to launch its mainnet in the coming months.

Its development signifies a significant step towards building high-performance, scalable dApps on Ethereum without security compromises.

For those intrigued by the future of Ethereum and Layer 2 scaling, the documentary “Scale” provides a comprehensive overview of Polygon ZK’s origin story, making it a must-watch.

As we march towards the future, Polygon 2.0 and its underlying ZK technology hold the potential to redefine Layer 2 scaling solutions, marking a new chapter in blockchain technology.

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