According to a research report published on Friday, the blockchain Polygon emerged as a gateway for all consumers looking to transition from Web2 to Web3.
According to the report, the blockchain team did two things correctly.
Polygon Got This Right
On the one hand, the blockchain hired new talent from global technology companies such as Amazon, YouTube, and Airbnb. In addition, it used its “business development muscle” to bring brands closer to a large number of customers.
“This has put Polygon in the unique position to be the Web3 on-ramp for millions of users,” Gautam Chhugani and Manas Agrawal, the two analysts in charge of the report wrote. “The market has started rewarding it for building through the bear market.”
Polygon stands out in the cryptocurrency market as one of the leading web3 blockchains today. The blockchain became the home for several high-profile industry-leading companies like Starbucks, NuBank, Reddit, DraftKings, Robinhood, and Meta.
In fact, Polygon’s native token, MATIC, rose nearly 30% last week after Meta announced a new platform to allow Instagram users to buy and sell non-functional tokens (NFTs).
Zero-Knowledge Rollups
Bernstein also notes that Polygon was smart for expanding the company during the bull market. Throughout the past year, the blockchain acquired developing teams to work on the groundbreaking zk-rollups on Ethereum.
Zk-rollups are Ethereum layer 2 protocols that allow transactions to be processed independently from the main network, increasing speed and lowering costs.
Through zero-knowledge technology, Polygon was able to construct a long-term scaling platform capable of supporting a Web2 scale. Due to being built as a virtual machine for Ethereum, it employs standard Ethereum language and tools, as well as ETH as the network’s currency.
Today, Polygon is seen as much more than just a complimentary scaling platform for Ethereum. The note states that the blockchain is so efficient that it adds value to its layer-1.
“Polygon’s success becomes the success of the Ethereum ecosystem.”
Criticisms
In counterpart, Bernstein’s report also added criticisms regarding the company.
According to the document, Polygon’s PoS chain is not a long-term solution for the future of the company. Also, it compared the dependence that the layer-2 blockchain has on its layer-1 (Ethereum), as “parasitic”.
