ZK Technology: A Game Changer for Blockchain Scaling
According to crypto market commentator Polynya, zero knowledge (ZK) proofs have the potential to revolutionize blockchain scaling. The efficiency upside of ZK technology, which is estimated to be 1,000 times more efficient, makes it irresistible for networks. This forecast is particularly significant for Polygon and its native token, MATIC, which has been facing selling pressure in recent months.
Polygon’s Efforts in ZK Scaling Solutions
Polygon Labs, the developer of the Ethereum sidechain, has been actively advocating for the development of ZK scaling solutions. They have assembled a team to develop zkEVM, a technique that uses zero knowledge to scale Ethereum while remaining compatible with the EVM. Currently, their zkEVM is in beta and undergoing testing.
Partnerships with Layer-1 Protocols
Polygon Labs has been striking deals with layer-1 protocols interested in leveraging ZK technology. For example, they integrated NEAR Protocol’s Data Availability solution with Polygon’s custom blockchain development kit (CDK) to facilitate the creation of ZK rollup solutions for developers. By integrating NEAR Protocol’s infrastructure, this partnership aims to lower costs and improve performance.
Polygon Labs has also partnered with other platforms such as Immutable, Ankr, and QuickSwap, all of which plan to operate as layer-2s for Ethereum. These partnerships contribute to the growing total value locked (TVL) in layer-2 protocols, which currently stands at over $21 billion.
Polygon’s Potential Growth and Price Outlook
The adoption of Polygon’s zkEVM solutions by more platforms is expected to benefit MATIC’s price. Currently stable but firm at around $0.70, MATIC has immediate resistance at $1. If more fundamental developments and partnerships occur, MATIC could experience further growth and potentially reach a target of $3, its 2021 high.
Hot Take: Polygon’s ZK Technology and MATIC’s Potential Rally
With the development of ZK scaling solutions and partnerships with layer-1 protocols, Polygon is positioning itself as a key player in blockchain scaling. The adoption of zero knowledge (ZK) proofs has the potential to revolutionize efficiency in networks, making it an attractive solution for scalability. As more platforms integrate Polygon’s zkEVM solutions, the demand for MATIC is likely to increase, potentially driving its price to new highs. This bullish development could solidify Ethereum’s position as a dominant settlement layer in the crypto market.
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