Polygon Ecosystem Roundup (September, 2023)
1. Key Metrics
In September, overall metrics for Polygon PoS and Polygon zkEVM declined. This is a result of an unfavorable market situation, and when compared to peer networks, it's evident that the Polygon PoS network's condition isn't notably worse. Looking at the metrics for Avalanche and BNB, the market capitalization declined by 11% and 3%, respectively, and TVL (Total Value Locked) declined by -6.7% and -1.5%, respectively. Most of these metrics have declined similarly or even more compared to Polygon PoS.
Since its introduction, the metrics for Polygon zkEVM surged swiftly, but they are now diminishing at an equally brisk pace. While market dynamics play a role, the magnitude of the decline suggests a distinct scenario specific to Polygon zkEVM. Other general-purpose zk-rollup projects, such as zkSync, maintained a TVL of around $120M during September, while StarkNet's TVL increased from $32M to $41M. A significant distinction between Polygon zkEVM and the other two is whether a token was launched or not. The Polygon zkEVM platform requires a plan to draw in more genuine users.
2. Updates & News
2.1 Technical
2.2 Companies & Institutions
Google Cloud’s BigQuery enhances blockchain data offering with 11 new chains including Polygon
Google Cloud becomes part of the decentralized validator set for Polygon PoS
ONE Store will provide marketing for games integrated on Polygon
2.3 Ecosystem
Polyhedra Network is Building a ZK-Powered Cross-Chain Bridge on Polygon
Canto to Migrate to a ZK L2 Powered by Polygon Chain Development Kit (CDK)
3. Featured Topics
3.1 Introducing Polylang: TypeScript for Miden VM
On October 2, 2023, Polygon Miden unveiled Polylang, a smart contract language. Polylang is a ZK TypeScript language for Miden VM, which developers familiar with JavaScript can easily learn. Previously, Polygon Miden developers had to learn the intricate Miden Assembly Language to use MidenVM. The newly unveiled Polylang gets rid of this complexity.
3.2 Polygon 2.0 Implementation Officially Begins, The First Set of PIPs Released
The Polygon 2.0 upgrade announced in June is finally undergoing preparations for implementation. Following this, three PIPs related to the Polygon 2.0 upgrade have been proposed on the governance forum.
PIP-18 describes the content related to Phase 0 of Polygon 2.0. It includes motivations for Polygon 2.0, milestones (POL Upgrade, Staking Layer), and more. The upgrade sequence is anticipated to be in the order of POL Upgrade, POL gas, Staking Layer, and PoS Staking.
PIP-17 details the new token for Polygon, the POL token. The utility of the token and associated contract codes are available for review.
PIP-19 includes a proposal to upgrade the gas token used in the Polygon PoS network from MATIC to POL. A contract upgrade for the native MATIC bridge is required to achieve this.
3.3 Astar Network Launches Astar zkEVM Powered by Polygon CDK with Gelato’s RaaS
Astar, one of the most widely used blockchains in Japan and a parachain of the Polkadot ecosystem, has announced the launch of Astar zkEVM using the Polygon CDK. The Astar zkEVM will be developed through the Polygon CDK-based Gelato RaaS platform and will support various features provided by Gelato (such as Native account abstraction and built-in smart contract automation). The Astar Mainnet and Astar zkEVM will operate simultaneously.
Source: Astar
The basic gas token of Astar zkEVM is ETH, but the existing ASTR token is utilized in a different way. First, sequencer profits are used to burn ASTR. Second, ASTR is used as an incentive for aggregators, and lastly, ASTR is used as gas fees for various tooling.
3.4 Faster Finality with the Aalborg Upgrade for Polygon PoS
Currently, transactions on the Polygon PoS network are finalized slowly, and a proposal PIP-11 has been submitted to improve this. PIP-11 introduces a new concept called milestones, aiming to grant faster finality to Polygon PoS. Just as Ethereum's Gasper consensus algorithm grants finality to blocks at regular intervals using a concept called checkpoints, milestones in Polygon PoS play a similar role.
Polygon PoS is composed of the EVM layer, called Bor, and the validating layer, called Heimdall. Milestones consist of 12 consecutive bor blocks; for every 12 blocks, the Heimdall layer grants them finality. Previously, a block had to be confirmed by 256 blocks after its creation for it to be finalized, taking about 576 seconds. With the Aalborg Upgrade, it will take an average of 105 seconds, including the consensus process for 12-block confirmation and granting finality. This will greatly enhance the user experience of Polygon PoS.
4. Recommended Reads
Layer 2 Demystified: How Polygon Scales Ethereum - An article explaining what L2 solutions are, the types, and how Polygon PoS, zkEVM, Miden, and CDK improve the scalability of Ethereum.
Complete Guide to Polygon: Tech & Business Insights - A comprehensive analysis article on all of Polygon's solutions and use cases.
To: U.S. Senate Committee on Finance / Re: Staking Rewards - A letter submitted by Polygon Labs to the U.S. Senate regarding the taxation of virtual assets.
Thanks to Kate for designing the graphics for this article.
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