Polygon

Based in India, Polygon (formerly known as Matic), provides a framework for building and connecting Ethereum-compatible blockchain networks. Polygon also offers a software development kit (SDK) for developers to deploy their own Ethereum-connected blockchains.

Polygon offers the sidechain Polygon PoS for developers to run their dApps and connect to the Ethereum blockchain. Polygon PoS uses a proof-of-stake consensus mechanism to validate transactions and has the potential to execute ~65,000 transactions per second, at a cost of roughly USD 0.002 per transaction (as of August 2022). Its native token is MATIC, which is used to transact and participate in the network. 

Polygon Edge is a modular and extensible framework for building Ethereum-compatible blockchains and sidechains using scaling technologies such as plasma, zero-knowledge (zk) rollups, and optimistic rollups based on user-specific requirements. These blockchains can be built with either proof-of-authority or proof-of-stake consensus mechanisms. The company also introduced Polygon Supernets, a dedicated network of validators, third-party implementation services, design, and tooling that allows developers to fast-track the development of their own blockchain by reducing costs associated with the servers needed to run them. 

Polygon also launched Agglayer–an interoperability protocol–that allows developers to connect any layer-1 or layer-2 blockchains to it to build a network that feels like a single chain with unified liquidity and unlimited scalability. In addition, it developed a zkEVM, which allowed developers to move their smart contracts from Ethereum to Polygon without having to reprogram them in a different language.

The company also offers privacy solutions (Polygon ID) for users to access Web3 applications anonymously. The company also offers customizable ‘.polygon’ domains for users that facilitates easier transactions and access to dApps. Furthermore, it launched The Value Prop, an open database containing catalogs to over 300 Web3 apps and use cases, with the goal of improving Web3 technology acceptance and usability.

Key customers and partnerships

During the first half of 2022, the number of dApps on Polygon had increased 4x to more than 37,000, while the number of users on its network had reached over 11,800 as of July 2022.

Polygon has made many strategic partnerships with other Web3 companies to improve the usability and adoption of its platform, as well as to increase adoption of Web3 and blockchain technologies. It partnered with Eclipse, a customizable layer-2 rollup provider, to launch Polygon SVM (Sealevel virtual machine), the first Solana-equivalent layer-2 scaling solution. It also partnered with Astar Network to launch a zk EVM-scaling solution to enhance the interoperability of its network with Ethereum-based chains.

In addition, it collaborated with Meroku, a decentralized app store protocol, to launch ‘dApp Store Kit,’ an open-source software development stack that allows anyone to build and launch their own EVM-compatible dApp store. The company followed up by launching its own dApp store in April 2023 in partnership with W3W.ai. 

Polygon also collaborated with Thirdverse, a blockchain based gaming developer, to launch Japanese IP-based games on its network, and Horizon Blockchain Games to promote the development of Polygon Supernets using the latter’s SDK, Sequence. Moreover, it partnered with NEAR to create zkWASM, a zero-knowledge (zk) prover for WASM blockchains, with the aim of improving interoperability across the Web3 ecosystem, enhance the secure bridging between NEAR and Ethereum, and offer WASM chains access to Ethereum’s liquidity.

Funding and financials

In February 2022, Polygon raised USD 450 million in a private sale of its MATIC token, led by Sequoia Capital India at a valuation of ~USD 13 billion. It had planned to use the fresh capital to expand its developer ecosystem and on new technology to improve the adoption of Web3 such as ZK.