Yesterday, the Polygon crypto project announced a new version of its protocol, which will be introduced in the near future and is expected to completely change the understanding of how value is exchanged on the Internet.
Details about the future of the Polygon PoS chain, the MATIC token, as well as the governance and treasury relating to the new community, will be explored in more detail in the coming weeks by the Polygon Labs team.
Let’s see together what this is all about.
Summary
The announcement of the Polygon crypto project
Yesterday the Polygon crypto project made headlines after it announced the introduction of a new layer within its ecosystem.
The tagline in the tweet with which the Polygon Labs team announced the new infrastructure to the public is iconic: “Our vision is simple: build the value layer for the internet.”
According to insiders, the new layer will be able to create value by empowering anyone to create and exchange information in a highly scalable way, just as is currently the case with the Internet.
Indeed, in the traditional web moving data is very easy and can happen with potentially infinite throughput, while in the world of web3, built on blockchain, this still has major limitations.
Polygon aims to permanently remove these problems by introducing a conglomerate of unified networks that will form the next layer, charged with programming, creating and transferring value among users through unlimited scalability and through unified liquidity.
The words of the crypto project team foreshadow the introduction of a technology that will be a game changer for the future of business on blockchain.
The new layer will be able to democratize access to a decentralized economy just as the Internet has democratized access to information.
It is described as the missing piece of the traditional network we are familiar with, which will empower users with a wide range of possibilities in the financial sphere that have yet to be explored.
Polygon’s vision does not differ much from that of the Ethereum Foundation, which as it has been saying all along, aims to become a global computer for the world that can transfer assets and data between users autonomously and without the use of intermediaries.
In this case, however, the concept is channeled under the universe of the Internet, suggesting that the connotations of scalability and ease of interconnection will be far greater than those observed to date in the Web3 world.
Let the revolution begin.
A value layer for the Internet
As mentioned, the Polygon crypto project introduced this new infrastructure to empower its community with a layer capable of transferring value, a concept introduced in the early days of 2013 with Ethereum.
However, Vitalik Buterin’s network, although extremely functional and strictly necessary for the functioning of the entire web3 ecosystem, looks nothing like the world of the Internet.
Without a shadow of a doubt, those unfamiliar with the workings of blockchain will be amazed and at the same time confused by how this world differs from the traditional internet.
The concept of a “value layer” serves precisely to diminish this gap and make Web3 look more like the Internet.
In detail, throughput will be built in a flexible way, so that it will be possible to increase scalability when needed, through the aggregation of L2 chain fed zk rollup.
Although technical details have not yet been revealed, even from the few words on the Polygon Labs blog post, the potential of the innovation is already apparent.
It is a change of approach towards classic attempts to increase the speed of transactions on individual blockchains.
At the same time, progress on the scalability front will be pegged to the concept of unified liquidity, which will allow value and information to be exchanged in a shared environment, without the need to go through secondary infrastructure such as bridges.
This would hint at a kind of omnichain communication system, just as is the case with LayerZero.
Thus, the connotations of zk consensus mechanisms and maximum interoperability across different networks are merged within the same layer, all in an elastic, secure, efficient and scalable decentralized economy.
Speaking of zk networks, it is worth noting that the Polygon zkEVM, which will most likely be integrated within this new value layer, has achieved a TVL of $23 million in just over 2 months and is growing steadily.
The new infrastructure will be introduced to the public in the coming weeks, after a series of updates are implemented on Polygon, changing some aspects of protocol architecture, tokenomics, and internal governance.
More specifically, in the immediate future, there will be hot topics such as:
- the future of the Polygon PoS chain
- the evolution of the MATIC token and whether a new token will be introduced, perhaps via airdrop to early adopters of the zkEVM network (as many expect)
- the transition to different governance and treasury for the new protocol
- the “value layer” roadmap
After more than a year of collaboration between Polygon Labs developers, the Ethereum team, researchers, applications, node operators and validators here comes the infrastructure that will totally change the game.
The new age of the Internet is coming.
Focus on the price of the Polygon crypto
While Polygon dropped a hand grenade on the tech front, the price of the MATIC crypto seems to have not yet responded enthusiastically to the news.
Unfortunately, the complexity of the regulatory situation in the US is putting a strain on all altcoins in the industry, especially those that, like MATIC; have been declared securities by the SEC.
The native crypto on Ethereum’s Layer 2 blockchain is in the midst of a bearish phase that has persisted for several weeks and is waiting to find supports that can push the price back up.
Most likely the areas where the bulls could make their presence felt are the $0.5 and $0.38 areas.
Meanwhile, the RSI indicator is approaching the oversold area (weekly time frame), where it will tend to be easier to see a bullish reaction from the asset.
In the past, this has worked to predict a rise in the MATIC token: for example, when the RSI touched 28 back in June 2022, we saw a rise of more than 300% in the following months.
We will see whether, in case the indicator touches those levels, there will be a similar upward movement.
In any case, MATIC represents the main crypto token in an ecosystem that is constantly expanding and has always been a forerunner of new trends.
Should the token not be replaced with another that will take the place of the new layer, then it will surely have a bright and fulfilling future.
For MATIC holders, this particular moment might be good to accumulate, as the retail focus is still on geopolitical factors while few are considering the potential of the new infrastructure.
Obviously going all-in would be crazy, but a DCA between now and the next few months might be the right choice to build a solid position in the long run.
MATIC currently has a price of $0.648, a capitalization of $6 billion, and a trading volume of $384 million.
