Polygon Labs has unveiled its vision for Polygon 2.0, an interconnected layer-2 Ethereum ecosystem powered by zero-knowledge cryptography. The scaling technology firm aims to create a scalable ecosystem consisting of four protocol layers: staking, interop, execution, and proving. This ecosystem will enable fast value transfer and information sharing.
The company released three Polygon Improvement Proposals (PIPs) on September 14, which are set to begin taking place in the final quarter of 2023. These PIPs outline technical details for “Phase 0” of the network’s establishment, which involves the transition and specifications for MATIC tokens becoming POL tokens, the native token of the Polygon proof-of-stake (PoS) protocol.
PIP-17 focuses on the upgrade from MATIC to POL and the transition to POL as the native gas token and staking token for the Polygon ecosystem. It also includes the launch of the staking layer and the migration of Polygon public chains.
PIP-18 provides a technical description of POL tokens and the accompanying contracts that will handle emission and token migrations. Existing MATIC tokens can be migrated to POL tokens at a 1:1 ratio. The proposal notes an initial supply of 10 billion POL tokens and a yearly emission of 2%, which will be equally distributed between validator staking rewards and a community treasury.
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PIP-19 proposes updating the native gas token on Polygon PoS from MATIC to POL while ensuring maximum backwards compatibility. It clarifies that contracts on Polygon PoS will not be changed, and the properties of the protocol’s native token will remain the same. However, upgrades may affect contracts on Ethereum that are waiting for MATIC from the native MATIC bridge.
Polygon co-founder Sandeep Nailwal envisions the ecosystem becoming the value layer of the internet by leveraging zero-knowledge (ZK) technology. By utilizing ZK technology, Polygon aims to offer low-fee, high-throughput performance to the broader Ethereum ecosystem.
The transition to Polygon 2.0 marks an important milestone for Polygon Labs and its goal of creating an interconnected layer-2 Ethereum ecosystem. This upgrade will enhance scalability and improve the overall performance of the network, providing users with faster and more cost-effective transactions.
By implementing zero-knowledge cryptography, Polygon aims to address the scalability challenges of the Ethereum network. Zero-knowledge proofs allow for efficient and secure computation without revealing any private information. This technology enables the creation of interconnected layer-2 chains, which will facilitate faster value transfer and information sharing.
The release of the PIPs and the roadmap for Polygon 2.0 signify the beginning of the implementation phase. Community consideration and voting will play a crucial role in shaping the future of Polygon 2.0. The involvement of the community ensures that the upgrade aligns with the needs and preferences of Polygon users.
With the proposed upgrades, Polygon is poised to become a leading solution for Ethereum scaling. The adoption of zero-knowledge cryptography and the establishment of an interconnected layer-2 ecosystem will attract developers and users looking for scalable and efficient solutions. Polygon’s commitment to interoperability and its ongoing efforts to enhance the Ethereum ecosystem make it a promising player in the blockchain industry.
