Sequoia leads $450 million investment in Polygon blockchain
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Polygon’s logo is its cryptocurrency network.
Jakub Porzycki | NurPhoto via Getty Images
Sequoia Capital is playing catchup with arch-rival Andreessen Horowitz in the race to invest in what could be the future of the internet — so-called Web3.
Silicon Valley venture capital company, Silicon Valley Venture Capital led $450 Million investment in Polygon. blockchain network.
Blockchains, which are distributed logs that record transactions and underpin most of the major global digital currencies, are what we call blockchains. These are kept by computers connected to the Internet. They must reach consensus to approve transactions and create new currency units.
Polygon acts as an a support layerEthereum, the Ethereum platform, helps to facilitate transactions on a large scale.
Ethereum is different from bitcoin’sIt supports applications such as non-fungible tokensNFTs and decentralized financeNot just peer to-peer transfers, but also (DeFi) services
Polygon: How it works
As more people join the Ethereum network, it has grown congested over the years. This results in slow transaction speeds and increased processing fees. Polygon and the so-called Layer 2 network have been created to relieve some of this load.
Polygon, a proof-of stake blockchain sits on top Ethereum’s network. Ethereum uses power-intensive crypto mining to verify transactions, participants in Polygon’s network just need to show they hold some tokens — in other words, a “stake” — to become validators.
The result is much faster transaction times — in the thousands per second, according to Polygon. Compared to Ethereum, the network is capable of handling approximately 15 transactions per second. Polygon claims it has completed more than a billion transactions and that there are approximately 2.7 million active monthly users.
Ethereum embarks on an upgrade called Ethereum 2.0It would be faster and more efficient. While the upgrade has some way to go before it becomes a reality, experts are concerned that Polygon could be at risk from this. Polygon, on the other hand, stated that it believes there will be strong demand for scaling services in blockchain even after Ethereum 2.0 has been implemented.
Sandeep Nailwal, cofounder of Polygon, said that he envisions Polygon becoming an autonomous version of Amazon Web Services. This cloud computing arm is the online giant’s e-commerce company. Polygon is part of “Web3,” a crypto movement with larger goals.
Web3: What’s it all about?
Web3 refers to the efforts to create a decentralized internet using blockchain technology.
It’s generated quite a bit of chatter in Silicon Valley. Twitter founder Jack Dorsey denounced it as “centralized entities” under the control of venture capitalists. Tesla CEO Elon Musk stated that it seemed more like a marketing buzzword than a reality.
Nailwal explained to CNBC that Web3 means “ownership, censorship resistance, and verified compute” for him. Nailwal stated that Web3 is a promise of transparency around computations. Companies like Twitter and Facebook control them, but Web3 will not.
Polygon hopes to become the hub for large brands looking to create their Web3 strategies. Polygon has already seen companies like Adidas, Prada and others experiment with NFTs via its network. Nailwal states that not all businesses are ready to embrace crypto. However, NFTs can be digested by them more easily than traditional methods.
Name investors
Web3 hype has attracted the attention of some of the most prominent names in venture capital such as Sequoia, Tiger Global, and Andreessen Horowitz.
Sequoia so far has been quiet about crypto investment, but Andreessen does have a dedicated fund to invest in this sector. Sequoia now speaks out more.
Shailesh Lakani, Sequoia India’s managing director, stated that Polygon is being used by thousands of developers from a variety of apps. This is an aggressive and ambitious team that believes in innovation.
Polygon, like other blockchains such as Ethereum, has its own token called matic. The company did not issue new shares but instead sold units of tokens to investors during a private round. Polygon’s investors are betting on matic increasing in value with increased adoption. Sequoia India, SoftBank and Galaxy Digital all invested in the fund.
The deal matches a similar one that Solana Labs made with Ethereum rival Solana in which it raised $314m through a token sale supported by Andreessen Horowitz.
Polygon will allocate $100 million to support the creation of new projects through its ecosystem fund. The rest will serve as “buffer money” to help Polygon’s 240-person team continue building out the platform in the years to come.
Blockchain gaming
Ryan Wyatt (ex-Youtube executive) is now the director of its gaming studio.
Wyatt stated to CNBC that “you’re seeing many really good developers leave major studios in order to create blockchain games.” We’re opening up new gaming experiences with people who are creating games on blockchain.
“In the coming years we will be pointing to high-polish games of triple-A quality that were built using Polygon,” he said.
Polygon claims it now has a value of $2 billion
This group does not consider itself a company. There is a lack of transparency about who owns certain platforms that support digital currencies. key source of contention for regulatorsExamining the rapidly-evolving crypto and DeFi worlds.
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