Polygon, a decentralized scaling solution for the Ethereum blockchain, raised $450 million in its first major venture capital fundraiser led by Sequoia Capital India. Other participants included Tiger Global, SoftBank, Alan Howard, Reddit co-founder Alexis Ohanian, and Kevin O’Leary, among others.
The funding was raised through a private sale of Polygon’s native token, MATIC, which touched a market capitalization of $15.6 billion. MATIC saw an immediate price jump of over 16% to $1.95.
Polygon’s Indian Origins
Previously known as Matic Network, Polygon was founded by three Indians—Jaynti Kanani, Sandeep Nailwal, Anurag Arjun—in 2017 with a vision to improve the infrastructure for Ethereum.
The Bengaluru-based blockchain startup was initially bootstrapped but later raised $5 million from Binance. In early 2021, Mihailo Bjelic from Serbia joined as a co-founder and helped rebrand Matic to Polygon. Later, the company added Mark Cuban as a backer.
Today, over 7,000 decentralized applications have been deployed on Polygon, including NFT marketplace OpenSea, DeFi platforms (Aave, Pool, Uniswap, and Curve0), and metaverse projects Decentraland and Sandbox. Clearly, Polygon is evolving as a playground for metaverse building projects.
How Does Polygon Power Web3?
“Web3 builds on the early internet’s open-source ideals, enabling users to create the value, control the network, and reap the rewards. Ethereum, scaled by Polygon, will be the bedrock of this next stage in the Web’s evolution,” said Sandeep Nailwal, the co-founder of Polygon.
Ethereum has emerged as the go-to Web3 platform for developers due to its popular DeFi and Non-Fungible Token (NFT) applications. And despite the largest pool of Web3 developers on any blockchain, Ethereum’s network is plagued with high transaction costs and low speeds.
These scalability issues are broadly addressed by Polygon, a Layer-2 solution built on top of Ethereum. This means that large chunks of transaction information are moved off the Ethereum blockchain, allowing Polygon to scale the number of transactions per block significantly.
Polygon’s Zero-Knowledge (ZK) technology is touted as the key solution that will allow Ethereum to onboard its subsequent billion users. The funds raised should allow Polygon to consolidate its lead and scale Ethereum, paving the way for mass adoption of Web3 applications.
“The goal of Polygon is to become the AWS [Amazon Web Service] of Web3. AWS of Web3 will need an identity segment. So we will [be] making some efforts on this space,” said Nailwal. Also, the startup recently hired YouTube’s former head of gaming Ryan Wyatt to lead Polygon Studios as it boosts its gaming and NFT efforts.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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