Will Facebook, Twitter, LinkedIn, also rule the web 3.0? Polygon (MATIC) and Reddit could bring new players to the forefront, matching or even surpassing these 2.0 giants with its new financing solution.
Polygon, Reddit, and Web 3.0: supporting future social media and gaming nuggets
On December 17, 2021, the Polygon team announced in a release, the launch of a $200 million initiative with venture capital firm Seven Seven Six. The latter was co-founded by Alexis Ohanian, who is also the co-founder of Reddit.
The $200 million will be used to fund social media and gaming projects using web3 that are built on Polygon, which is an Ethereum Scaling Solution (ETH). The project website describes Polygon as “a protocol and framework for building and connecting Ethereum-enabled blockchain networks.”
Polygon aims to offer developers the benefits of Ethereum, without the drawbacks of Ethereum, such as high gas fees, or network congestion.
Rapid development of Polygon: is the scalability of Ethereum 2.0 a threat?
The Polygon ecosystem is growing rapidly. More than 3,000 decentralized applications have been built there. The project had announced on December 9, 2021, the purchase of the startup MirProtocol for $400 million. This investment will allow Polygon to develop Polygon Zero, its zk-Rollup solution on Ethereum.
The zk-Rollup is a technique that performs off-chain calculations, and then sends them by batch or block for validation on Ethereum. A single validation allows to realize several transactions. This procedure reduces the cost and speed of transactions, and thus brings a solution of scalability to Ethereum.
The current version of Ethereum does have scalability concerns, but what is the future of projects like Polygon if the network upgrade, Ethereum 2.0, manages to solve these problems?
Polygon is appealing to more and more organizations, such as Enegra Group, which made its home there after leaving Ethereum. This 200 million dollars is an additional argument for social media and gaming projects looking for a favorable ecosystem for their development.