Polygon 2.0: How It Will Revolutionize the Ethereum Ecosystem

Polygon is a popular scaling solution for Ethereum that aims to provide faster, cheaper, and more secure transactions for decentralized applications (DApps). Polygon uses a network of sidechains that are compatible with Ethereum and can communicate with each other and the main chain.

However, Polygon is not satisfied with its current achievements and has announced a major upgrade called Polygon 2.0. Polygon 2.0 is a vision for the future of Polygon that will make it the "Value Layer of the Internet". Polygon 2.0 will leverage zero-knowledge (ZK) technology to create a scalable, interoperable, and decentralized ecosystem of ZK-powered layer-2 chains that can support any kind of application or use case.

In this article, we will explain what Polygon 2.0 is, what are its benefits and challenges, and what are some of the projects that are already building on it.

What is Polygon 2.0?

Polygon 2.0 is a set of proposed upgrades that will transform Polygon from a single network of sidechains to a multi-chain system of ZK rollups. ZK rollups are a type of layer-2 solution that use ZK proofs to verify transactions off-chain and periodically post them on the main chain. ZK proofs are cryptographic proofs that can verify the validity of a computation without revealing any details about it.

Polygon 2.0 will consist of four protocol layers:

• The staking layer: This is the existing Polygon proof-of-stake (PoS) chain that will secure the network and provide staking rewards for validators.
• The interop layer: This is a new layer that will enable cross-chain communication and asset transfer between different ZK rollups and other layer-2 solutions.
• The execution layer: This is the layer where the ZK rollups will run and execute smart contracts and transactions.
• The proving layer: This is the layer where the ZK proofs will be generated and verified using specialized hardware and software.

Polygon 2.0 will also introduce a new token model that will change the name and function of the native token from MATIC to POL. POL will be used as the gas token for paying transaction fees on the ZK rollups, as well as the staking token for securing the network and participating in governance.

What are the benefits of Polygon 2.0?

Polygon 2.0 has many benefits that will make it a game-changer for the Ethereum ecosystem and beyond. Some of these benefits are:

• Unlimited scalability: Polygon 2.0 will be able to support thousands of transactions per second (TPS) on each ZK rollup, which can be further increased by adding more rollups or using sharding techniques.
• Unified liquidity: Polygon 2.0 will allow users to access any DApp or service on any ZK rollup without having to switch between different networks or bridges. Users will also be able to transfer their assets across different rollups or layer-2 solutions seamlessly and securely.
• Enhanced security: Polygon 2.0 will inherit the security of Ethereum as the base layer, as well as the security of ZK proofs as an additional layer of protection. ZK proofs are mathematically sound and can prevent any fraud or manipulation on the ZK rollups.
• Improved user experience: Polygon 2.0 will offer users a fast, cheap, and easy way to interact with DApps and services on Ethereum without sacrificing decentralization or privacy. Users will also be able to enjoy more diverse and innovative features and functionalities that ZK technology can enable.

What are some examples of Polygon 2.0 projects?

Polygon 2.0 has already attracted many developers and projects that are eager to explore its potential and possibilities. Some examples of these projects are:

• Friend.tech: A decentralized social platform that allows users to buy shares of influencers and celebrities on Twitter and chat with them privately.
• Lens Protocol: A protocol that enables users to create and manage their own social graph across multiple Web3 applications.
• Audius: A decentralized music streaming platform that empowers artists and fans to connect directly.
• Mirror: A decentralized publishing platform that allows writers to create and monetize their content using crypto.

What are the challenges of Polygon 2.0?

Polygon 2.0 is still in its early stages of development and faces some challenges that need to be overcome. Some of these challenges are:

• Technical complexity: Polygon 2.0 involves a lot of technical innovation and experimentation that requires high-level expertise and coordination among different teams and stakeholders.
• User adoption: Polygon 2.0 requires more education and awareness among users about the concepts and benefits of Web3, ZK technology, and layer-2 solutions.
• User interface: Polygon 2.0 demands more user-friendly and intuitive interfaces that can lower the barriers to entry and adoption for mainstream users.
• Regulation and compliance: Polygon 2.0 involves more regulation and compliance issues that can affect the legal status and rights of users and developers.

Is POL a new token? What happens to MATIC, will both exist?

Practically speaking, POL is an upgrade and renaming of the MATIC token. From the protocol viewpoint, MATIC and POL would not and can not coexist; POL can only replace MATIC.

Are you introducing the Community Treasury because the Polygon Foundation needs additional funds?

No. The Community Treasury is being proposed as an independent support vehicle, aiming to provide further support in a highly competitive blockchain infrastructure market. Every year, multiple new infrastructure protocols launch with strong token treasuries; the Polygon community should be able to respond to that. In addition to this, the introduction of the Community Treasury should increase transparency, decentralization and community involvement.

Will POL be used for gas fees?

‍Every Polygon chain’s community can decide which token will their chain use for gas fees; some of them might choose POL. As a result of the upgrade, Polygon PoS chain would become one of them. That being said, using ETH for gas fees provides significant UX benefits for Layer 2 chains, which subsequently leads to higher adoption and more fees for validators. ‍

Is this proposal a response to the recent events in the regulatory environment globally?

No. Ever since Matic Network expanded its vision and got rebranded to Polygon, it has been publicly discussed and understood that the native token should eventually be upgraded as well. This specific proposal has been worked on for almost a year.

Conclusion

Polygon 2.0 is an ambitious and visionary project that aims to bring Ethereum to Internet-scale. Polygon 2.0 will use ZK technology to create a scalable, interoperable, and decentralized ecosystem of ZK-powered layer-2 chains that can support any kind of application or use case. Polygon 2.0 has many benefits and challenges, and it is still in its early stages of development. However, it has already attracted many innovative and promising projects that are exploring the possibilities of Polygon 2.0 in different domains and use cases. Polygon 2.0 is definitely a trend to watch and participate in, as it can transform the way we create and exchange value online and offline.

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