(CU)_According to a research paper released by Bernstein on Wednesday, the success of the Polygon blockchain in adding scalability to Ethereum demonstrates the need for developers to engage with general users rather than only the “crypto cult”.
About 300,000 of the 170 million addresses in Polygon’s user base are classified as active, according to Bernstein. It is adding 80,000 new users every day.
According to Bernstein, the network’s proof-of-stake (PoS) chain was the first to provide scalability for Ethereum, which prompted top decentralized finance (DeFi) and non-fungible token (NFT) businesses to sell their products on the system. Additionally, Polygon has more affordable costs, which makes it simpler for applications like trading platforms Uniswap and OpenSea to meet market demand.
The broker states that Polygon was chosen as their “first integration partner to build Web3 experiences” by Meta (META), Stripe, Starbucks (SBUX), and Robinhood (HOOD). Millions of users can access Polygon thanks to a robust collaboration pipeline, it was added.
Organization has been Polygon’s “other secret”. According to analysts Gautam Chhugani and Manas Agrawal, the blockchain has hired from huge firms like YouTube, Airbnb (ABNB), Electronic Arts (EA), Amazon Cloud, and others to create a “truly global company”.
DeFi is an umbrella term for financial operations including lending, trading, and other transactions that take place on a blockchain without the help of conventional middlemen. NFTs are blockchain-based digital assets that may be bought, sold, or exchanged and reflect ownership of real-world or digital goods.
The blockchain is creating a “rollup-centric scalability plan” with Ethereum’s recent switch to PoS, dubbed as the Merge, the note stated.
Given this situation, Bernstein stated that “the supporting ecosystems like Polygon would continue to invest in developing rollup technologies like zero-knowledge rollups, but their success is likely to be more determined by organizational and business development efforts,” adding that “they are more business-oriented ecosystems focused on building a consumer gateway leveraging partnerships with leading consumer brands.”
The statement continued that Polygon’s success thus far has demonstrated its capacity to create a “more mainstream consumer gateway”, with emphasis now placed on the zero-knowledge (ZK) environment.
The Merge is the first of upcoming Ethereum blockchain’s five updates. By processing transactions and running smart contracts—computer programs that run on some blockchains—on their own chains, rollups enlarge the Ethereum network.
