As we navigate the complexities of the digital revolution, we are witnessing the birth of a new era in the cryptocurrency sphere. Polygon Labs announced the ambitious blueprint for Polygon 2.0 on June 12, 2023. This set of proposed upgrades is designed to radically reimagine almost every aspect of Polygon, from protocol architecture to tokenomics and governance.
Before we delve into the details of Polygon 2.0, let’s shed some light on the historical development of Polygon, formerly known as Matic Network.
The Polygon Journey
Launched in 2017, Polygon began as an offshoot of Ethereum, specifically designed to resolve scalability and usability issues. By employing a combination of Proof-of-Stake (PoS) and Plasma-based sidechains, Polygon aimed to deliver a high-performance, low-cost environment for developers to build and deploy decentralized applications (dApps).
Polygon quickly garnered attention for its scalability, speed, and cost-effectiveness compared to its predecessor, Ethereum. Its successful adoption by many developers for DeFi, gaming, and other dApps, is proof of its accomplishment.
As a multi-chain solution, Polygon creates an ecosystem where numerous chains can co-exist and interoperate with each other and with Ethereum. The platform offers a variety of frameworks, each designed to fulfill specific use cases, thus providing a well-rounded, flexible solution.
The SEC timing
the announcement of Polygon 2.0 comes at a rather intriguing time in the larger crypto industry. The U.S. Securities and Exchange Commission (SEC) has recently filed lawsuits against Binance.US and Coinbase, raising the question of whether Matic, the native token of Polygon, is a security. This development, potentially a significant regulatory challenge, has implications for all blockchain platforms and the broader digital asset industry. With the promise of Polygon 2.0 to transform and democratize the Internet’s value layer, the SEC’s scrutiny may further stimulate the ongoing debate about the definition and regulation of digital assets. It will be interesting to see how this situation evolves and how Polygon navigates the uncertain regulatory waters in the wake of this revolutionary upgrade.t\
Vision for Polygon 2.0
The primary vision of Polygon 2.0 is to create the “Value Layer” of the Internet – a decentralized, open-source protocol enabling anyone to create, exchange, and program value seamlessly. This Value Layer aims to democratize access to the global economy, akin to how the Internet democratized access to information.
Imagine the possibilities: a world with decentralized finance, digital ownership, new coordination mechanisms, and much more. All of this, without intermediaries, gatekeepers, or rent-seekers. In essence, Polygon 2.0 is not only an upgrade but a revolution that will make the Internet an environment that primarily serves users.
Building the Value Layer: The Key Pillars
The Value Layer, as envisioned by Polygon, borrows its concept from Ethereum. However, the current state of Ethereum and other blockchain ecosystems hardly resemble the structure of the Internet, characterized by infinite scalability and unification of information.
Blockchains aren’t infinitely scalable, and creating new chains often results in fragmented liquidity and reduced security. Polygon 2.0 is set to change that narrative by introducing a network of ZK-powered L2 chains, unified through a novel cross-chain coordination protocol. The whole network will be as seamless for a user as using a single chain.
This network will support a practically unlimited number of chains, and cross-chain interactions can occur safely and instantly, without additional security or trust assumptions. Unlimited scalability and unified liquidity – that’s the vision for Polygon 2.0.
Rolling out Polygon 2.0
The journey to Polygon 2.0 is a collaborative effort that includes Polygon Labs, developers, researchers, applications, node operators, validators, and the broader Polygon and Ethereum communities. Over the coming weeks, the team will share more details on the components of Polygon 2.0 via blog posts, AMAs, community meets, and more.
Polygon’s adoption of a formal governance process underlines the importance of community participation. As control over the Polygon protocol rests in the hands of its community, the role of builders, creators, and all others in the Polygon ecosystem is crucial.
Let’s brace ourselves for this new chapter in the story of Polygon. To keep up with the latest updates, follow Polygon Labs on various social media platforms and join the conversation. As we embrace this change, we look forward to witnessing the transformation of Polygon and the wider blockchain space.
Stay tuned, get familiar with Polygon 2.0, and join the revolution!