Mohith AgadiDuring a private sale led by Sequoia Capital, Polygon, the L2 solution aimed at solving scalability problems of Ethereum, raised $450 million from around forty Venture Capitalists. News that had an immediate effect on the crypto whose value has increased by +15% in less than 24 hours.
The private sale was led by Sequoia, with participation from Tiger Global, SoftBank, Galaxy Digital, Republic Capital, Seven Seven Six of Alexis Ohanian, Steadview Capital, Animoca Brands, Spartan Fund, Dragonfly Capital, Variant Fund, Sino Global Capital, and Kevin O’Leary.
In a press release, Polygon said the funding will be used to build Web3 applications, including Polygon PoS, Polygon Edge, and Polygon Avail, which are similar to Amazon Web Services offerings but for Web3 developers.
Polygon does not hide its ambitions for Web3. After promising to invest nearly a billion in ZK-rollup technology by already making two acquisitions including Mir and Hermes to strengthen its legion of scalability solutions. Polygon wants to become a big player in the third version of the internet, which is widely known as Web3.
“Web3 builds on the open-source ideals of the early Internet, allowing users to create value, control the network and reap the rewards. Ethereum, scaled by Polygon, will be the foundation for this next stage in the evolution of the web”, said Polygon co-founder, Sandeep Nailwal.
To materialize its goals in Web3, the Polygon team is working to implement a full suite of solutions that resembles what Amazon Web Services offers Web2 developers.
First, Polygon PoS, available already on the market, offers an execution layer with low fees and high transaction throughput secured by the Ethereum Mainnet, which is used as a final settlement layer. Then, Polygon Edge, which will allow the creation of custom blockchains from scratch. Finally, Polygon Avail will employ ZK-Rollup technology to prevent network congestion issues.
A surge in the Network Adoption
According to Polygon’s press release, its ecosystem currently has over 7,000 decentralized applications, also known as dApps. Aave (DeFi protocol), OpenSea (NFT marketplace), Mark Cuban’s Lazy.com, and Dolce & Gabbana for its NFT efforts are among the popular dApps available on Polygon. Sandbox and Decentraland are also interested in launching their metaverse on the Polygon network.
Last year, Polygon’s blockchain recorded over a billion transactions. According to data shared by its team, the network has over 130 million unique addresses and over 2.67 million monthly active users, generating approximately 3 million transactions per day, which is more than double the volume of Ethereum.
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Damodar Kalyan
