Polygon Returns to Ethereum with Polygon 2.0
Polygon is not only returning to the Layer 2 race with Polygon zkEVM, but it’s also the story of Polygon zkEVM Validium, also known as Polygon 2.0. So, what makes Polygon 2.0 different and exciting compared to the previous Polygon PoS model? Let’s find out in the article below.
Lingering Issues with Polygon PoS
Blockchain is just a facade
For a long time, Polygon PoS has prided itself as a secure and decentralized blockchain that effectively addressed scalability issues on Ethereum. However, with only around 100 validators, can it truly be considered decentralized? The answer is, not really.
In the past, users might have overlooked this aspect while focusing on fast and cheap transactions. However, during the downtrend, users started scrutinizing it more. Decentralization is a crucial aspect of a blockchain, and if it’s not decentralized, using PayPal or Visa would be more attractive. Hence, Polygon had to make changes.
A frequently congested network
Polygon is well-known for its extremely low transaction fees. However, the low fees led to users spamming the network, causing occasional congestion. For regular DeFi users, having a transaction pending on Polygon for a week or even a month became a common occurrence.
We had to send extra funds just to cancel transactions. Several times, Polygon’s network faced congestion due to games like Sunflower Farmer early in 2022. This became a pressing issue for the development team, leading to the birth of Polygon 2.0.
The Emergence of Polygon 2.0 & Return to Ethereum
Some reasons behind Polygon 2.0’s emergence
As mentioned earlier, Polygon 2.0 aims to address the lingering issues with Polygon PoS, such as centralization and network spam-induced congestion. In addition to these, there are several other reasons for the launch:
The Polygon development team is responsive to business opportunities, as evident from the success of Polygon PoS in recent cycles. Clearly, Layer 2 and zkEVM are the current and future trends. The development team has also explored various Layer 2 scaling solutions, and transitioning from Polygon PoS was a part of their long-term plan. One of the most significant reasons is the preparation for a new growth cycle. Even as they become a Layer 2 on Ethereum, they don’t abandon MATIC and continue to build more Use Cases for it.
Polygon 2.0 Model
Polygon PoS will transform into the Polygon zkEVM Validium platform. Validium is similar to zkRollup, with the difference lying in Data Availability:
zkRollup: All transactions are aggregated into a Call Data format. This Call Data, along with ZKP transaction proofs, is sent to Layer 1 for consensus and storage.
Validium: In contrast to zkRollup, Validium only sends ZKP transaction proofs to Layer 1, storing all data off-chain with its own Sequencers. With Validium technology, Polygon 2.0 significantly improves scalability, including transaction speed and fees. However, this comes with a trade-off in terms of network security, decentralization, and integrity. Validators in the Polygon PoS network will continue to play crucial roles in Polygon 2.0, including:
Acting as Sequencers to determine valid transactions, assembling them into blocks, and sending them to Layer 1. Playing a crucial role in data storage to ensure data availability and network integrity. With 100 Validators transitioning from Polygon PoS to Sequencers in Polygon 2.0, Polygon zkEVM Validium aims to become one of the most decentralized Layer 2 platforms. However, if there’s no plan for decentralizing Sequencers, Polygon might end up becoming a centralized Layer 2 similar to Polygon PoS.
Why Validium, not zkRollup? It’s understandable. Previously, Polygon invested hundreds of millions of dollars to acquire the Layer 2 solution Hermez, which is now known as Polygon zkEVM. Polygon zkEVM is a full-fledged zkRollup platform, making the need for an additional zkRollup unnecessary. Instead, they needed a different product that focuses on scalability.
Clearly, with this approach, Polygon 2.0 will have some outstanding features
Inheriting minimal security and decentralization from Ethereum. Strong scalability with almost instant transaction speed and negligible fees. Validium’s transaction speed can reach up to 10,000 TPS, compared to zkRollup’s approximately 2,000 TPS. Validium technology may not be inherently compatible with EVM, but it can be the first platform for Polygon. This makes it easier for projects on Ethereum to expand into Polygon 2.0.
No time delay in withdrawals, optimizing user capital utilization. With this development direction, Polygon 2.0 will focus on areas that require significant scalability, such as Gaming, NFTs, Social, or Trading. On the other hand, DeFi protocols will be prioritized for development on Polygon zkEVM. Clearly, Polygon is anticipating that the upcoming growth cycle will still involve the presence of NFTs and Gaming
