Research Summary
The report discusses the state of the Polygon ecosystem, its advancements in 2023, and expectations for 2024. It covers the launch of zkEVM and Polygon CDK, the introduction of POL, the Polygon Ecosystem Token, and the potential of tokenized real-world assets. The report also highlights the role of Polygon in combating fake news and facilitating global loyalty programs.
Key Takeaways
Polygon’s Role in Blockchain Adoption
- Mass Adoption of Blockchain: The report highlights 2023 as an inflection point for mass adoption of blockchain in global finance, with Polygon at its core. The launch of zkEVM and Polygon CDK were crucial in laying the groundwork for Polygon 2.0 and the future of scaling Ethereum.
- Polygon 2.0 and Liquidity: Polygon 2.0 aims to make it economically viable for chains to scale with demand without paying the expensive fee associated with Ethereum L1. It also aims to solve the problem around liquidity fragmentation, making on-chain proof submissions more cost-effective with each additional chain that joins the ecosystem.
Introduction of POL and Polygon CDK
- POL (Polygon Ecosystem Token): POL represents an upgrade to Matic, introduced to incentivize activity and bootstrap liquidity in the Polygon 2.0 ecosystem. Users will be able to swap their MATIC for POL on a one-to-one basis.
- Polygon CDK (Chain Development Kit): Polygon CDK is the easiest way to deploy an L2 and get the full security of Ethereum’s base layer. It has gained considerable traction, with as many as 15 chains developing on it.
Decentralized Identity and Tokenization of Real-World Assets
- Polygon IDs: Polygon IDs enable user privacy and data ownership, allowing users to own their data and choose who gets access to it. They offer portability, allowing users to complete the KYC process just once and use their credentials universally.
- Tokenization and RWAs: The report highlights the potential of tokenized real-world assets, predicting a 50-100x growth in the current Total Value Locked (TVL) figures as blockchain technology becomes more embedded in the global financial system.
Polygon’s Future Collaborations
- Combatting Fake News: Fox News is utilizing Polygon as a platform to combat fake news proliferation by using blockchain technology to verify the origins of media content.
- Global Loyalty Programs: Blockchains enable interoperable trading of loyalty points. With major brands building on Polygon, loyalty points are predicted to become a very active market in the coming years.
Actionable Insights
- Explore the Potential of zkEVM and Polygon CDK: Given the significant role of zkEVM and Polygon CDK in the future of scaling Ethereum and the mass adoption of blockchain, it would be beneficial to explore their potential further.
- Consider the Implications of POL: The introduction of POL as an upgrade to Matic could have significant implications for the Polygon ecosystem. It would be worth considering these implications and the potential impact on the ecosystem.
- Investigate the Opportunities in Tokenized Real-World Assets: The report predicts significant growth in the tokenization of real-world assets. Investigating these opportunities could provide valuable insights into this emerging market.
