Research Summary
The report provides a comprehensive review of Polygon PoS network’s performance in 2023, highlighting its growth in daily active addresses, transactions, and Total Value Locked (TVL). It also discusses the introduction of the Aggregation Layer, the adoption of the Polygon Chain Development Kit, and the establishment of the Polygon Protocol Council. The report further delves into the upcoming Polygon 2.0 upgrade, the development of Polygon Miden, and the transition of the Polygon PoS chain into a zkEVM validium.
Key Takeaways
Polygon PoS Network’s Performance
- Consistent Growth: Polygon PoS network experienced consistent growth in daily active addresses throughout 2023, peaking at 372,000 in Q4. The network also saw a significant surge in transactions with a 93% quarter-over-quarter increase in Q4.
- Increased Total Value Locked (TVL): Polygon PoS’s TVL rose by 16% quarter-over-quarter, ending Q4 at $1.1 billion and ranking sixth among blockchains in terms of TVL.
Introduction of New Technologies
- Aggregation Layer: Polygon Labs introduced the Aggregation Layer (AggLayer), designed to unify liquidity across a multichain ecosystem and facilitate cross-chain transactions for EVM L1 and ZK L2 networks.
- Polygon Chain Development Kit (CDK): Adoption of the Polygon CDK expanded, with notable teams such as Astar Network, Canto, Flipkart, and others integrating the technology.
Establishment of the Polygon Protocol Council
- Enhanced Security: The establishment of the Polygon Protocol Council, a 13-member body, was announced to oversee regular and emergency network upgrades for enhanced security.
Upcoming Developments
- Polygon 2.0: Polygon 2.0, unveiled in June 2023, is set to bring major upgrades to the ecosystem, focusing on scalability and liquidity through ZK technology integration.
- Polygon Miden: Polygon Miden, a ZK L2 rollup using the Miden Virtual Machine (MVM), is in development, signaling Polygon’s commitment to advancing ZK rollup technology.
Actionable Insights
- Monitor the Development of Polygon 2.0: With the upcoming launch of Polygon 2.0, it would be beneficial to keep an eye on its development and the potential impact it could have on the Polygon ecosystem.
- Research the Potential of the Aggregation Layer: The introduction of the Aggregation Layer could significantly enhance the interoperability and liquidity of the Polygon network. Understanding its functionality and potential benefits could provide valuable insights.
- Assess the Impact of the Polygon Protocol Council: The establishment of the Polygon Protocol Council could have significant implications for the security and governance of the Polygon network. Evaluating its role and potential impact could be beneficial.
- Explore the Adoption of the Polygon CDK: The increasing adoption of the Polygon CDK by various teams indicates its potential for facilitating the creation and deployment of ZK L2s on Ethereum. Exploring its applications and potential benefits could provide valuable insights.
- Understand the Implications of the zkEVM Validium Transition: The proposed transition of the Polygon PoS chain into a zkEVM validium as part of the Polygon 2.0 upgrade could enhance security, performance, and compatibility. Understanding the implications of this transition could be beneficial.
