Polygon 2.0 Aims to Provide ‘Unified Liquidity’ Across Ethereum Scaling Networks

Polygon Labs is shifting forward with plans to reinvent its complete structure as a part of its purpose to turn into the “worth layer of the Web.”

Polygon 2.0 may have a essentially completely different structure that makes it simpler and extra seamless to spin up new chains within the Polygon ecosystem. Polygon itself is an Ethereum layer two. It was designed to deal with a few of Ethereum’s limitations by a sidechain resolution.

As its improve seeks to make it simpler to create new Polygon chains, it can additionally characteristic a shared bridge to enhance interoperability between these chains and remove the necessity for wrapped tokens. A wrapped token, like Wrapped Bitcoin (WBTC), permits customers to maneuver belongings off their native blockchain. On this case, WBTC permits customers to maneuver their Bitcoin onto the Ethereum and Tron networks.

The way in which that’ll work on Polygon 2.0, native Ethereum tokens can be deposited right into a single contract on Ethereum mainnet. When a consumer desires to make use of their tokens throughout completely different Polygon chains, the corresponding belongings can be mapped to the tokens deposited on Ethereum, which Polygon says will remove the necessity for wrapping them and enhance consumer expertise.

“The coordination layer permits us to optimistically verify cross-chain transactions in a means that’s secure and practically instantaneous,” mentioned Polygon co-founder Brendan Farmer. “It’s the primary multi-chain design that may really ship unified liquidity.”

As an extra step, Polygon says it can combine zero-knowledge (ZK) proofs as a part of the system to enhance. When utilizing on-line companies, for instance to make a fee, private figuring out info like names or start dates are required to entry them. Utilizing a ZK proof, a celebration should show they know what’s in a transaction with out revealing the identified info straight to ensure that it to be verified.

Within the new system, each the unique Polygon community and the brand new one will depend on ZK proofs that may retailer the validated transactions on the L1, and the precise transaction information on the L2 that can be added. Collectively, they may decrease prices and enhance privateness for Polygon customers.

Polygon co-founder Mihailo Bjelic mentioned that the imaginative and prescient behind the upgrades is to fill in “the lacking piece of an Web” and contribute to a “digital financial system that serves everybody.”

“The imaginative and prescient for Polygon 2.0 is to create the Worth Layer of the Web,” Bjelic mentioned in a press launch. “In the identical means that the Web permits anybody to create and trade info, the Worth Layer will enable anybody to create, trade, and program worth.” 

These adjustments echo partly options from Ethereum co-founder Vitalik Buterin earlier in June. In a publish titled ‘The Three Transitions’, Buterin mentioned Ethereum’s future would hinge on variations to better privateness, elevated use of L2 scaling options, and a transfer to good contract wallets. Polygon 2.0 makes use of at the very least two of those parts.