Famous Ethereum second layer solution, the Matic Network project changes its name and becomes Polygon. In addition to this rebranding, Polygon is adopting a strategy to create a multi-chain system on the Ethereum blockchain, similar to the one already set up by Polkadot.
Matic Network becomes Polygon
Matic Network , the popular scaling solution for the Ethereum blockchain, changes its name to Polygon . In its press release , the startup specifies that it is committed to developing new solutions to help Ethereum cope with its new rivals , such as Polkadot (DOT) and Avalanche (AVAX).
Now, the Polygon team will focus on Layer 2 protocol aggregation , to host multiple technologies at once in the interest of improving the user experience of Ethereum /
“Polygon will support several Layer 2 solutions such as Optimistic Rollups (OR), zkRollups (ZKR), and Validium, making it an L2 aggregator. This approach, implemented through Polygon’s modular SDK, will allow projects to select the scale solution that best fits their needs rather than being tied by any one option, ”the Polygon team specifies.
In its press release, the startup says it is aware that certain solutions such as Polkadot, Cosmos and Avalanche occupy a more important place in the ecosystem. For Polygon, these networks have the advantage of being well structured, unlike the “somewhat chaotic Ethereum” landscape. Instead of going it alone, Polygon therefore aims to bring together the most scalability solutions for Ethereum and get the best out of each protocol .
The team also adds that all the existing products developed on Matic Network and their implementations obviously remain functional. Regarding the Polygon token, MATIC will keep its roles in network security and governance . MATIC therefore remains the cryptocurrency of this new ecosystem and its holders have no particular action to take .
The solution to Ethereum’s problems?
This change in strategy on the part of the Polygon team comes at a critical time for Ethereum . The network is struggling to meet demand and transaction fees are becoming exorbitant, in the order of $ 100 to $ 200 depending on the period . Decentralized finance (DeFi) applications built on Ethereum are suffering, with users looking for alternatives as fees continue to climb.
This significant network congestion is unfortunately the price of Ethereum’s success. The price of Ether (ETH) continues to climb and DeFi protocols like Aave, Maker or Compound are attracting more and more users.
Massive adoption of second layer protocols is a top priority for the sustainability of the Ethereum network and all applications built on it. As long as Ethereum does not solve this major problem, the migration of users to other less expensive blockchains will continue, notably to Polkadot, Avalanche and especially Binance Smart Chain .
With the Ethereum 2.0 upgrade likely not coming until late 2021 – early 2022, DeFi protocol users won’t wait that long before turning to other more affordable solutions. For Polygon, the stakes are high and its actions could literally reverse the trend.