Polygon is Reaping the Benefits of a $1 Billion Investment in zk-Rollups
Polygon co-founder Sandeep Nailwal has spoken about the firm’s investment of an estimated $1 billion in zero-knowledge (ZK) proof-powered scaling solutions for Ethereum’s layer-2 ecosystem, emphasizing that it yields positive results.
During his keynote address at the Token2049 conference in Singapore, Nailwal discussed the development of “Polygon 2.0” scaling initiatives and the potential of recursive ZK-proof technology to create an interconnected blockchain ecosystem.
Nailwal compared Web2 and Web3, highlighting the former as the “Internet of information” with practically unlimited scalability and the ability to seamlessly convey information globally at high speeds. In contrast, Web3 represents the “internet of value,” which he believes requires two key capabilities: infinite scalability and unified liquidity to transfer value.
To achieve these goals, Nailwal stressed the importance of an aggregator or interoperability layer that combines ZK-proofs from various chains into a common layer. This would enable liquidity to move across chains without involving Ethereum for every transaction. Recursive ZK-proof technology is pivotal for this aggregator layer, which is expected to be deployed in the coming months.
This technology allows different blockchains to submit ZK-proofs of their network state to the aggregator, which then submits proof of these combined attestations to the Ethereum network. Nailwal envisions cross-chain transactions taking just four to five seconds, significantly faster than an Ethereum block time.
Nailwal also highlighted the benefits of having high-liquidity chains like Polygon’s zkEVM and proof-of-stake chain, which facilitate sharing value among applications. Larger layer-1 blockchain platforms have expressed interest in joining this interoperable layer, creating a mutually beneficial ecosystem.
Polygon’s zkEVM beta was launched on the mainnet in March 2023, offering developers the ability to deploy smart contracts and decentralized applications with improved throughput and lower costs compared to Ethereum’s layer 1. The company has also introduced its Chain Development Kit, enabling developers to build, customize, and deploy layer-2 chains connected to the broader Ethereum ecosystem.
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