Sequoia Capital aims to reach the same position as its competitor Andreessen Horowitz in the race to invest in the Web3 who possibly would be the future of the internet. The Silicon Valley Venture Capital Company has invested a whopping $450 million in the Polygon blockchain network.
So, it is essential to describe some details regarding Polygon. It is a support layer of Ethereum. Furthermore, it is worth mentioning that Ethereum is a platform behind the cryptocurrency named Ether and assists it in transactions at scale.
Ethereum and its features are quite different from Bitcoin because Ethereum backs applications for decentralized finance (DeFi) and non-fungible tokens (NFTs) services.
Now, let’s shed some light on the working of the Polygon. Ethereum has become a giant network over the years and has many users around the world. All these things have elevated the processing fees and slowed the transaction time. Therefore, the authorities came up with layer 2 of Ethereum and named it Polygon, and the primary purpose of this network is to curb the workload of the Ethereum.
Polygon has a power-of-stake blockchain. On the other hand, Ethereum utilizes power-intense crypto mining for verifying transactions. The participants or users in the Polygon network have to display that they possess some tokens; in crypto language, we can say that they must have a stake for becoming validators.
Resultantly the transactions in the Polygon network are thousands per second. Comparatively, Ethereum can only carry out fifteen transactions per second. Polygon claims to have completed more than one billion transactions and has approximately 2.7 million active monthly customers.
Ethereum is now planning to develop Ethereum 2.0, which will be its upgraded version. It will make the system faster and more efficient as well. Although it will possibly take a good time to become a reality after launching, it would be a threat for the Polygon network, according to the predictions of crypto experts. But Polygon says that it hopes public demand for the blockchain scaling service will remain the same even after the implementations of Ethereum 2.0.
It is worth mentioning that the co-founder of Polygon network has said that “Polygon’s grander ambitions form part of a movement in the crypto world known as Web3.”
Web 3 can be defined as the new concept in tech that is about efforts for building the internet’s more decentralized version that will be based on blockchain technology.
There is a lot of hype about this new concept in the crypto world. Some are in support of it, while others criticize. According to the owner of Tesla, it seems more like a “marketing buzzword” than reality. In addition, the Twitter co-founder has called it a “centralized entity” that venture capitalists control.
The popularity of Web3 has succeeded in grabbing the attention of some big names such as Tiger Global and Andreessen Horowitz, and Sequoia.
Have you invested in Polygon? How do you find it?