Buidling in Silence: What’s Going on With Polygon Crypto?

Ethereum is a legacy platform. It was almost formatted similarly to Bitcoin, looking at security model and transaction processing.

Over the years, as Ethereum found adoption, weaknesses started to show. There was a need to scale the platform.

Several proposals were forwarded after the explosion of DeFi in 2017. However, before developers opted for layer-2 scaling and rerouting transactions off-chain, the Matic Network, now Polygon, existed.

As a scaling solution anchored on Ethereum , it was, as expected, compatible with the mainnet but as a sidechain.

This means that Polygon, even as it is, has its consensus system, operated independently, but is connected to the Ethereum main net for security and to ease transfers.

Over the years, the network has grown exponentially. As of mid-August, the primary focus is to build more, providing developers with a secure, scalable, and low-fee haven for experimentation and deployment of dApps.

The MATIC To POL Rebranding

After the Matic Network’s rebranding to Polygon, the native token, MATIC, remained the same.

Plans are underway now to upgrade MATIC and rename it to POL. The transition is set for September 4.

The migration will be seamless and transparent for MATIC holders on the Polygon PoS chain.

 

However, more action should be taken by those holding the token on the various zkEVM chains powered by Polygon tech, centralized exchanges, and Ethereum.

But this won’t be a cosmetic, superficial name change.

Polygon Labs says the move will be part of its roadmap. The platform will shift to focus on interoperability, scaling, and more intense building.

Of note, the decision to upgrade MATIC to POL is part of a multi-year, multi-phase rollout centered around the building of the Aggregation Layer, or AggLayer.

The AggLayer: What Is It?

At the center, the AggLayer will be the core of the expansive Polygon ecosystem, acting as a bridge connecting various components of the Polygon Network.

The AggLayer will comprise the proof-of-stake chain, similar to Ethereum but enabling users to transact quickly and cheaply.

Notably, this bridge will tap into the privacy offered by zero-knowledge technology while settling on the Ethereum mainnet.

While Polygon aims to build a highly interoperable ecosystem using the AggLayer, the bigger picture, even beyond the MATIC-POL migration, is to make the platform a hub for real-world assets (RWAs).

Increasingly, more assets are being taken on-chain, with BlackRock, one of the largest asset managers, projecting tokenization to lock trillion dollars worth of assets in the coming years.

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Polygon To Power RWA Through Tokenization

Through tokenization, liquidity can be unlocked and traditional asset classes that were previously illiquid made more accessible to institutions worldwide.

Nearly $11 billion worth of assets have been tokenized in various blockchains, according to  raw data .

BlackRock has launched BUIDL on Ethereum, a product tokenizing United States Treasuries.

As of August 22, it manages over $502 million and continues to grow, issuing attractive dividends to institutional investors.

 

Therefore, as more investors enter the space, more RWAs will be tokenized, fueling rapid growth.

Going forward, Polygon aims to be a major player in RWA tokenization. It is banking on the AggLayer as a critical tool for unifying liquidity, especially for interested traditional firms venturing into the blockchain.

( MATICUSDT )

Presently, MATIC is up 40% from August lows. If buyers push on, the token may fly even higher, recovering losses of Q2 2024 in a refreshing recovery.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.