Polygon’s Charlie: What we are doing is in a higher dimension than that of Rollup
Source: MEXC Global
At 20:00 on August 3, Singapore time, Charlie, the person in charge of the Polygon China ecosystem, visited the MEXC community to share Polygon’s ecosystem development and network security issues. Charlie said that at present, Polygon has more than 520 DApps, more than 400 million online transactions, and more than 17 million independent address users, including those from DeFi, NFT, and games.
Besides, an ecosystem fund of about $120 million USD is jointly established to empower, invest and accelerate the development of projects in the Metaverse field, games, and NFT.
Polygon is the Rollup’s Rollup. What is already being done and what needs to be done later is much larger than the Rollup scheme.
The shared records are as follows:
Thank you, host. Hello everyone. I’m Charlie, who is in charge of the Polygon ecosystem.
Host: First of all, please introduce Polygon.
Charlie: Polygon (Matic) is the first well-structured and easy-to-use Ethereum expansion and infrastructure development platform. Its core component is Polygon SDK, which is a modular and flexible framework. It supports the construction and connection of security chains, such as Plasma, Optimal Rollups, zkRollups, Validium, etc., and independent chains, such as Matic POS chain, to achieve flexibility and independence.
Polygon (Matic)’s Layer2 chain has been widely used. It has more than 520 DApps, more than 400 million on-chain transactions and more than 17 million independent address users in Defi, NFT and games.
Technically, Polygon is highly developer-friendly and compatible with Ethereum EVM, with very low migration and development costs and handling fees.
From the earliest Plasma PoS side chain of Ethereum (formerly called Matic) to the aggregator of Layer 2 comprehensive capacity expansion schemes at the beginning of this year, up until now, it supports hundreds of blockchain application projects requiring high performance and comprehensive blockchain solutions for full-stack capacity expansion. Thus, Polygon’s strategic development and growth can be said to be exponential in the past 10 months.
In January 2021, there were only 1500 active on-chain addresses every day, and now it has increased to an average of 55–60 active addresses per day.
Of course, the more direct growth is the currency price. The market value of TVL and the application projects deployed on the chain has increased by 70 times and more than 20 times, respectively. The application projects deployed on the chain have increased from more than 200 at the beginning of the year to more than 500 at present.
Host: The next question is about users’ concerns. What is Polygon (Matic)’s Tokenomics model? And how does Polygon’s ecosystem development drive the rise of token value?
Charlie: Matic is the utility Token of the main network of the Polygon blockchain. As a service charge for network transactions, Gas fee, on-chain POS node Staking, and the network native assets of all aspects of the on-chain application of DeFi, the total amount is 10 billion. Compared with Ethereum, the Matic network has a fixed total amount rather than continuous issuance.
The ecosystem’s prosperity must be positively related to the growth in demand for the Polygon economic system and Matic Token. Since 2020, hundreds of application projects have been deployed on the Polygon network, including DeFi, NFT, and Game projects.
When various ecosystem projects come to the Polygon network, the on-chain applications require Matic as a service fee. When deploying all nodes, they also need to stake Matic Tokens. At present, there are more than 6 billion TVL staked assets in the whole network of Polygon. In some of its head DeFi applications, including DEX, such as Aave, Curve, Quickswap, etc., The main LP pairs and transaction pairs are also related to Matic.
The rapid development of ecosystemecossytem applications and the growth of several orders of magnitude of active addresses in the chain have also directly or indirectly driven the use scenarios and needs of the ecosystem’s Token. The win-win cooperation of ecosystem empowerment one after another has also led to the rapid growth of the Polygon ecosystem’s market value by dozens of times this year.
As a high-performance blockchain infrastructure ecosystem with the fastest development speed and strong compatibility with Ethereum, Polygon has phenomenal primary fundamental and secondary growth this year.
Host: Alright. Let’s move on to the next question. Curve, Aave, and other famous DeFi use Polygon for expansion. What is the current ecosystem development of Polygon?
Charlie: Everyone can visit our website https://awesomepolygon.com/.
As I said earlier, the ecosystem development of Polygon today has experience exponential and phenomenal growth.
The above network is a summarized website of Polygon’s officially deployed ecosystem projects with relatively clear official cooperation. At present, there are more than 520 projects, 50% DeFi, 40% NFT + Gaming, and 10% in Tooling and other aspects of the ecosystem projects.
Aave, Curve, Sushiswap, Dydx, Kyber Network Balancer, FraX, Barnbridge, Harvest and other well-known DeFi projects in various Ethereum fields.
Leading NFT platforms and projects including Opensea, Decentraland, Cryptovosels, Sandbox, Aavegotchi, Atari, and Terra Virtua have also been deployed to Polygon. After deployment, these applications’ on-chain transaction volume and active addresses have also increased significantly due to the reduction of hundreds of times of transaction fees.
Recently, many projects from other ecosystems, such as HECO, BSC, Polkadot, Cosmos, and so on, have been migrated and deployed to achieve cross-chain asset transfers and deployed to Polygon to complete the Multichain versions.
The moving and Multichain deployment of older leading projects are only part of the ecosystem growth. In addition, a more critical part is that various new projects in the blockchain industry are directly launched on Polygon.
For example, there are more than 300 projects similar to the recent trending blockchain games, Playtoearn, Web3 games, and projects in the field of Metaverse. At present, they are closely connected with Polygon, and more than 150 have completed the main network deployment. Zed run, a leading blockchain chain game project (A16Z lead investment) and some fast-growing projects such as Ethermon and Chainguardians are deployed directly on Polygon.
Recently, DEX projects with innovative mechanisms, cross-chain bridges with unique technologies and new functions, wallets, zero-knowledge proof solutions, and other middle-tier and infrastructure projects are planned to engage and deploy to Polygon.
This is an image from May. The reality now is already bigger than this figure. The world’s top infrastructure partners, such as Chainlink, TheGraph, and Bioconomy, are also cooperating very closely with Polygon.
Host: Okay. The Metaverse concept is trending these days, and Polygon also established blockchain games and NFT Department studios. How does Polygon view the Metauniverse and NFTs? What actions will be taken in this field next? Will games be developed?
Charlie: The Metaverse and gaming field are the focus of the development of Polygon. To a certain extent, the founders of Polygon have great confidence and ambition in this field. They hope to make continuous efforts to become the world’s leading blockchain infrastructure in this field through their continuous technological innovation and business cooperation.
There have been a lot of discussions on the Metaverse recently. I have also shared some views and prospects on the Metaverse in other NFT-focused communities before.
Metaverse is a technology field of all aspects and different levels. This year, an important meeting this year is that various fields, including AI, VR, wearable devices, big data, blockchains, Internet of things, creative content and so on, have played different roles and roles in Metaverse.
From Polygon’s perspective, on this important future of the overall development of the society’s massive incremental virtual economic development, Metaverse is an essential part of Polygon, which uses blockchain technology to enable future games. One of the most crucial strategic news releases recently is the establishment of the Polygon studio.
Polygon Studio, established by the Polygon ecosystem, which focuses on Metaverse, games, and NFTs, is similar to the Consensys organization established by the Ethereum foundation. It is determined to accelerate the ecosystem development of this rapidly developing subdivision field and accelerate the empowerment, incubation, and construction of various ecosystem projects.
To this end, Polygon has also combined some of the world’s top venture capitalists to establish an ecosystem fund of about $120 million USD to empower, invest in and accelerate the development of projects in Metaverse, games, and NFT.
During the Shanghai ChinaJoy game exhibition last week, Polygon also organized a Metaverse-themed ecosystem partner exchange cocktail party and actively participated in many cross-border game activities, including the China Game Developer Conference (CGDC). It was also invited to participate in the Metaverse-themed activities organized by multiple Polygon ecosystem partners, such as the annual activity of Metaverse organized by RCT.
In August, Polygon’s global developer series activities will be launched soon, with DoraHacks, the most professional hacker organization in China, and dozens of head ecosystem partners.
In the NFT field, games and Metaverse, the Polygon hackathon will also have a special Track. The developer friends or friends in the gaming field in the MEXC community are welcomed to actively sign up or come to communicate. We are closely communicating and exploring cooperation with teams with rich resources and experience in various games, creativity, and other fields outside the blockchain industry.
Host: Okay. The fifth question. The Rollup expansion project will be launched soon. Uniswap V3 announced the adoption of the Optimal Rollup scheme. Will the expansion of Ethereum set off an ecosystem dispute in the future? How does Polygon respond to this, and what are its advantages over other solutions?
Charlie: Polygon is about full stack expansion. Polygon is accelerating the development and layout of all aspects such as zk Rollup, Validium, Opportunistic Rollup, and other aspects.. Polygon is about becoming “Swiss Army Knife” around the expansion of Ethereum. At present, it has directly acquired the technical team that has worked in the direction of ZK Rollup for a long time.
Polygon has just released their solutions on blockchain Data Availability, and the technical progress.
This can be understood as the technical solution of the Polygon layout in advance to solve the limitations of rollup expansion, and understand Rollup’s Rollup.
Polygon ecosystem provides all-round support for application-layer developers, empowerment of all aspects of technology, ecosystem, strategy and business, network effect of exponential growth of ecology, and its continuous release, including data availability chain, shared security chain to be released later, etc. What Polygon is already doing, and what it will do later, is much larger than the Rollup scheme.
Therefore, from these aspects, Polygon’s advantages and playing methods are ultimately at a higher dimension.
At the same time, many applications of the Polygon ecosystem, including DEX itself, are developing rapidly. Recently, there has been an innovation launched in the Polygon ecosystem. DEX-Mytrade, which combines the mixed business mechanism of AMM and Order Book, has held a press conference, and will be committed to following Uniswap V3 PK.
Quickswap, Sushiswap, O3swap, and other DEXs are also developing rapidly.
Host: Okay. The following is a problem that users think is important. In the second quarter of this year, BSC was caught in security problems. It was the same for Polygon since late June. Security problems have occurred in Iron Finance, Polywhale, Safedollar, and other projects one after another. May I ask, what are the root causes of these security problems? After that, how will Polygon deal with it?
Charlie: BSC’s attack is DeFi project’s flash loan attack.
Iron Finance, Polywhale, SafeDollar, etc., are caused by some incorrect parameter settings and the financial product design of the DeFi project team. From the security perspective, Polygon has been on the rise of ecosystem projects. For some anonymous teams and teams with a few problems in product design, Polygon will not give Grants and other ecosystem support. These projects mentioned above are relatively high-risk, anonymous and directly deployed to Polygon spontaneously.
Wholly speaking, Polygon will give the desired support to the more reliable ecosystem projects. We also have the desired community ambassador, KOL, and media partnership matrices. We hope to make some professional analysis and research from the perspective of the community to help more people understand the ecosystem projects more comprehensively and scientifically, especially some new projects with some risks to reduce the risk and avoid pitfalls.
Polygon works closely with various global security companies and white hat companies, including Certik, SlowMist, Hacken, PeckShield, security protocol Hapi, etc. Furthermore, for the security of ecosystem projects, Polygon hopes to cooperate with various professional security companies to reduce the occurrence of subsequent security problems.
Host: The core component SDK of Polygon has been launched for some time, but other Layer2 modules are still waiting to be launched. What are the relevant plans?
Charlie: The Polygon SDK was launched in June. At present, many projects have been used, tested, and joined hands in partnerships.
Subsequent Layer2 modules will be developed in ZK Rollup, Validum and Opportunistic rollup, and the data availability chain will be officially launched.
In the second half of 2021, we will strive to promote the Polygon shared security chain. After this technical breakthrough is released, Polygon will realize aclosed-loop around a high-performance full-stack expansion of the crosschain network technology infrastructure around Ethereum.
Host: Okay. What positive impacts and challenges will Ethereum 2.0 bring to Polygon after it is fully launched?
Charlie: As a full-stack capacity expansion solution aiming to solve Ethereum’s scalability problem, Polygon and Ethereum will also have a cooperative relationship after ETH2.0 is launched. The development of Polygon has been the relationship of collaborative development and mutual empowerment since its establishment.
The launch of Ethereum 2.0 is undoubtly of greater positive significance to the development of the blockchain industry. In the future, the demand for the blockchain will certainly be greater than the supply. Therefore, the development of Polygon will continue to be determined to build greater blockchain infrastructure development with Ethereum and support the technical needs of various commercial applications.
Host: Okay. Let’s move on to our last question for tonight. What does Polygon think of the many projects that regard Ethereum as an opponent, such as ADA, which will launch smart contracts in the near future? What possible changes will Ethereum make in the future?
Charlie: Any project that calls itself the ETH killer has failed in the past, in terms of historical development and facts. The ecosystem development and situation of Ethereum have reached a huge network effect.
After several years of development, ADA finally has smart contracts, but we don’t think there will be any apparent ecosystem growth in a short time.
Compared with the blockchain ecosystem and application ecosystem that have been tested by the industry for several years and have a vast network effect, other ecosystems that hope to destroy Ethereum have failed since 2017. From the perspective of Polygon, they have been trying to enable the development and typical growth of Ethereum. However, we are still cautious about other ecosystem development that is far from clear about the application of ecosystem development.
I want to thank the MEXC community again for inviting me. I’m glad to have the opportunity to share with you the recent development of the Polygon ecosystem.