With Mark Cuban as investor, Indian blockchain startup Polygon is fixing Ethereum’s scalability issues

In 2017, three software program engineers determined to construct a well-structured, easy-to-use platform for Ethereum scaling and infrastructure improvement – an answer that was forward-thinking and forward of its time.

Jaynti Kanani, Sandeep Nailwal and Anurag Arjun realised Ethereum, the decentralised, open-source blockchain with sensible contract performance, was coping with scalability points and excessive fuel charges (transaction charges).

After engaged on a proof of idea, the trio launched Matic Network in Bengaluru and got down to enhance the infrastructure for Ethereum, whose native cryptocurrency Ether (ETH) is the second-largest cryptocurrency by market capitalisation. 

In a video interview with YourStory Founder and CEO Shradha Sharma, the startup’s co-founder and CEO Jaynti Kanan says:

“When CryptoKitties, a blockchain game on Ethereum, became popular, it jammed the network. So for us, it became a question of solving this problem. We knew blockchain technology was still in its early stages, and so we weren’t looking to onboard millions of users in a short span of time. Rather, we just wanted to be a top blockchain project in terms of usage.”

The startup was bootstrapped with funds from family and friends, and later went on to lift $5 million from Binance in an preliminary change providing that noticed the founders promote a portion of the MATIC tokens they held.

On the again of a market-wide bull run and outperforming most different cash in the course of the current correction, MATIC lately entered the checklist of high 20 cryptocurrencies worldwide in market capitalisation, and turned its co-founders into India’s first crypto billionaires.

From Matic to Polygon

Through 2020 and early 2021, Mihailo Bjelic, an engineer from Serbia, joined as a co-founder as Matic expanded its scope and rebranded to Polygon – Ethereum’s web of blockchains. 

By addressing Ethereum’s scalability challenges with Polygon, the founders purpose to rework Ethereum right into a multi-chain ecosystem with secured Layer 2 chains and standalone chains.

Layer 2 is a collective time period used to explain blockchain options that assist purposes scale by dealing with transactions off the Ethereum Layer 1, or the mainnet, whereas leveraging the mainnet’s strong and decentralised safety mannequin.

On the again of its scaling resolution, Polygon and its native token MATIC have been making massive waves throughout the blockchain and cryptocurrency sectors.

In May 2021, Polygon raised an undisclosed amount of funding from US-based tech billionaire and serial startup investor Mark Cuban – a mainstay of the American actuality TV present Shark Tank.

On Mark Cuban Companies’ web site, Polygon is described as “…the first well-structured, easy-to-use platform for ethereum scaling and infrastructure development. Its (Polygon’s) core component is Polygon SDK, a modular, flexible framework that supports building and connecting Secured Chains like Plasma, Optimistic Rollups, zkRollups, Validium etc., and Standalone Chains like Polygon POS, designed for flexibility and independence.”

According to reviews, Cuban is integrating Polygon into Lazy.com, a portfolio firm that permits folks to simply show non-fungible tokens (NFTs).

On May 29, Polygon introduced it had accomplished the mixing of Polygon belongings into Google Cloud‘s BigQuery, which permits customers to question Polygon’s datasets, run analytics and extract insights utilizing the BigQuery platform.

American businessman and investor Mark Cuban

Technology adoption and monetisation

So far, Polygon’s scaling options have seen widespread adoption, with over 250 decentralised purposes, 76 million transactions, and seven,90,000 distinctive customers.

Jaynti says, “We have over 400 applications running on the platform. We have applications ranging from gaming, VR, cryptocurrency exchanges, identity solutions platforms etc.”

He provides, “When we started, I was in touch with founders of various applications including Decentraland (MANA) and AAVE, who came on board. We then created an in-house business development team and started pitching to multiple other apps.”

At current, Polygon doesn’t obtain revenues from transactions on its community, says Jaynti, including that the startup is at the moment not focussing on clocking income.

“As our network is decentralised and we have over 100 validators for transactions, we cannot control it. Users pay fees directly to validators and not to us. We can only help maintain the network. At a later stage, we can consider building products over our network to make money, but as of now, our focus is only on growing our network,” he says.

A cofounder’s journey

Jaynti entered the world of blockchain after working as a knowledge scientist at Housing.com and dealing with rejection from fintech corporations when he utilized for the place of a product supervisor.

“I wanted to become a product manager, but I was rejected as I didn’t have prior experience in product management. Nevertheless, I was always looking to build side projects. My first one was a betting platform for television shows, which made me think of integrating a global payment method,” he says. 

Although he didn’t pursue that venture additional, his seek for decentralised cost techniques led him ultimately to Bitcoin and later, Ethereum. 

Ether (ETH) is the second largest cryptocurrency by market capitalisation. 

Jaynti and co-founders then got here throughout Ethereum Plasma, an idea proposed by Ethereum co-founder Vitalik Buterin as a scaling resolution for the Ethereum blockchain. 

Plasma refers to a framework permitting the creation of ‘child blockchains’ that use the Ethereum mainnet as a layer of belief and arbitration.

The co-founders then used the whitepaper to ideate, construct a proof of idea and create a scaling platform, resulting in the genesis of Matic Network.

Now, 4 years after launching their startup, Jaynti, Sandeep, Anurag and Mihailo are on the wheel of a fast-growing blockchain agency that isn’t slowing down anytime quickly. 

In reality, the co-founders are on the centre of enabling a sturdy blockchain ecosystem within the nation as they mentor and put money into a rising crop of younger entrepreneurs and startups within the area, at the same time as they construct a globally recognised firm that’s disrupting the trade from India.

In the final week of May 2021, Polygon launched the primary model of its much-anticipated Polygon SDK, which permits builders to deploy Ethereum-compatible chains at velocity utilizing an in-built EVM (Ethereum Virtual Machine) and a set of pluggable modules.

Although Indian regulators have lately stepped up strain on cryptocurrency platforms and banks are ceasing operations with them, innovation in blockchain by Indian startups like Polygon is barely getting began.

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