Investment Briefing #2: Polygon

What is it

Polygon is a blockchain protocol like Ethereum or Solana, except (unlike those protocols) Polygon is not its own blockchain. Instead, it operates on top of Ethereum.

Polygon has been pitched as a way to help the Ethereum blockchain scale, offering faster transaction times and lower fees. Here are some of the key features of Polygon you need to know about:

  • Scaling: Polygon is a Layer 2 blockchain. It operates on top of the Ethereum blockchain and all its transactions are ultimately validated by Ethereum nodes.
  • Cheaper and Faster: The biggest issue with Ethereum right now is the time and cost to perform a transaction. Polygon is trying to increase transaction time and reduce fees while also staying true to the decentralized nature of Ethereum.
  • New Tech: Polygon’s ‘Layer 2’ scaling proposal relies on new technology that’s untested and some doubt whether it’s a long-term solution.
  • Dynamic Ecosystem: Developers love how easy Polygon is to use for end-users. This has led to a vibrant ecosystem with developers, who would normally choose to build on Ethereum, opting to build on Polygon instead.

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