By George Ward
The innovative Layer-2 scaling solution, Polygon, has continued to drive Ethereum’s rapid adoption. With the unveiling of Polygon 2.0, the platform aims to help Ethereum tackle scalability issues by leveraging the power of zero-knowledge protocols.
Introducing Polygon 2.0 Update
In a new development, Polygon Labs has revealed the upcoming launch of the Polygon 2.0 update, which it claims will be a pioneer “Value Layer” for the Internet. Additionally, the transformative upgrade will empower users to generate and exchange value with one another, effectively solving a long-existing issue on the blockchain.
With Polygon 2.0, the firm aims to provide the crucial element missing from the Internet landscape. In a recent blog post, Polygon Labs shared more insights on the disparities between Ethereum’s Value Layer and the conventional Internet.
While highlighting the different features, the blockchain firm explained that the Ethereum network could scale the Internet through elastic scaling and a cohesive ecosystem, enabling seamless global information sharing and accessibility.
In contrast, Ethereum’s existing framework must include all these features, representing an apparent disparity between the two platforms. Meanwhile, Ethereum struggles with network congestion and increasing gas fees despite switching to a proof-of-stake (PoS) consensus mechanism.
The September 2022 Merge, which completed Ethereum’s move to the PoS protocol, has done little to mitigate the network’s challenges. Furthermore, Ethereum has continued to face harsh throughput constraints that hinder its potential for unlimited scalability.
Although enhancing its capacity by introducing additional chains to the Ethereum network is possible, such a solution would result in liquidity fragmentation and compromise security measures. However, the Ethereum network can achieve unparallel scalability through the Polygon 2.0 update.
The update will also harness the potential of zero-knowledge-powered Layer-2 chains seamlessly linked via an innovative cross-chain harmonization protocol. Thus, users can effortlessly navigate an extensive network of interconnected chains and engage in cross-chain communication, akin to browsing websites on the Internet.
Ethereum Leads Other DeFi Protocols In TVL
DeFiLlama’s recent data reveals that Ethereum is the leading decentralized finance (DeFi) protocol with the highest Total Value Locked (TVL) of $25 billion. In contrast, Polygon occupies the fifth position with a TVL of $881 million.
Furthermore, these figures underscore both platforms’ significant adoption and utilization within the DeFi ecosystem. Meanwhile, Ethereum’s scalability challenges prevent it from achieving full scalability.
However, with the emergence of Polygon 2.0 and its innovative approach, there is the potential to revolutionize Ethereum into a resilient network that fulfills the role of the value layer for the forthcoming Web3. The emergence of the Polygon 2.0 is expected to transform and reshape the DeFi landscape and, by extension, the Ethereum ecosystem.