TL; DR
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According to Sandeep Nailwal, co-founder of Polygon, if we want Web3 to succeed, we need two things:
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Infinite, unlimited, limitless scalability. (Translation: blockchain technology that won’t break if too many people use it).
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Uniform liquidity for value to be transferred.
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What Sandeep and the Polygon team are working on is a solution that essentially takes Ethereum out of this conversion process so that congestion can decrease.
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The end result? The ability to switch between any Ethereum-based token at scale in seconds.
Full story
According to Sandeep Nailwal, co-founder of Polygon, if we want Web3 to succeed, we need two things:
-
Infinite, unlimited, limitless scalability. (Translation: blockchain technology that won’t break if too many people use it).
-
Uniform liquidity for value to be transferred.
What does that last bit mean?
Think of these Ethereum-based chains as different global currencies.
If you want to exchange Zimbabwe dollars (ZWL) for Swedish krona (SEK) in the real world, you can open your currency exchange app, press a few buttons – and boom! It’s finished.
But what you’re missing is what’s happening in the background.
You’ll be hard-pressed to find a Swedish bank that accepts Zimbabwean dollars – so what the currency exchange does is exchange your ZWL for US dollars (which are accepted everywhere) and use that USD to buy Swedish krona.
Something similar happens when you exchange Ethereum-based tokens.
For example:
When you exchange one small/less popular Ethereum-based token for another, what happens is that ‘Small Token 1’ is exchanged for Ethereum (ETH). That ETH is then used to purchase ‘Small Token 2’, which is then surrendered. your wallet.
Okay, okay, it’s not a perfect analogy, but the point is:
This puts a lot of pressure on Ethereum.
What Sandeep and the Polygon team are working on is a solution that essentially takes Ethereum out of this conversion process so that congestion can decrease.
The end result?
The ability to switch between any Ethereum-based token at scale in seconds.
Let’s hope the Polygon team can make it happen!