Coinbase, the second-largest crypto exchange based on transaction volume, has announced that it would be using Polygon’s scaling solution for Erhereum as a way of reducing fees and also reducing the settlement times within the exchange.
Polygon is a Layer 2 solution on Ethereum that looks to solve some of the primary concerns surrounding the Ethereum network at the moment, which are high gas fees and also delayed transaction times. Ethereum has been struggling with these issues for over a year now as the network has grown manifold since its inception and it is now creaking at its sides unable to bear all the load that has been coming in over the years from users and developers alike.
At the right time, Polygon has stepped in with its Layer 2 solution that has been making waves in the market and the developers and the users seem to love the solution as is evident from its growing popularity over the last year. Though there are a few other Layer 2 solutions like Skale available, the one from Polygon has been proved to be highly scalable and it has also helped to cut down transactions costs to a few seconds and also built up high transaction speeds as well while continuing to give the reliability of the Ethereum parent network. Though ETH 2.0 is expected to resolve these pending issues, Polygon is expected to hold its own in the coming years.
The use of their solution by Coinbase is an added validation of the platform’s robustness and it is expected to give a further boost to the company in the future. No details of when the scaling solution would be implemented have been revealed as yet. The platform has also made a big launch into the NFTs and gaming space over the last few months and this is expected to further its usage.
The company was started in India in 2017 with a small team and with a few million in funding but has now grown into a multi-billion dollar platform as its usage increases and the transaction volumes also show a surge over the last few months. The low cost of the native token has also helped to keep the transaction prices low. Polygon had also recently acquired Hermez, a zero-knowledge scaling project as it seeks to expand into a new frontier of zero-knowledge solutions.