Polygon is an Ethereum scaling platform that allows developers to make scalable DApps (decentralized apps) with lower transaction fees without surrendering to security.
A well-known Indian blockchain startup Polygon has raised $450 million with a valuation of roughly $10 billion, making it the largest and most valuable fundraising round in India’s Web3 (crypto and blockchain) market.
The money was raised through a private sale of the company’s native Matic token, which was led by Sequoia Capital India and included SoftBank, Tiger Global, and others.
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Polygon is an Ethereum scaling platform that allows developers to create scalable decentralized apps (DApps) with minimal transaction fees and high security. Polygon (previously Matic) was founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun to address the issue of high fees and sluggish transactions on the Ethereum blockchain.
Matic, Polygon’s native cryptocurrency, now has a market capitalization of $14.6 billion, down 28% from its all-time high of $20.4 billion reached in December 2021.
“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 Polygon co-founder Sandeep Naiwal.
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“Technological disruption didn’t start with Web2, nor is it going to end there. That’s why we are very excited to see some of the same firms that funded the previous round of innovation now being our Web3 vision.”
The Polygon team is developing a comprehensive set of solutions similar to what Amazon Web Services provides Web2 developers – a tool for every imaginable use case with automatic scaling. For Web3, Polygon PoS already gives an execution layer with low fees and high transaction throughput secured by the Ethereum mainnet.
Polygon Edge allows projects to create their own blockchains from the ground up. Polygon Avail will supply the general-purpose, scalable data availability element of the puzzle in the near future. At the same time, ZK solutions will first eliminate network congestion before tackling privacy-related applications.
“The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem,” said Shailesh Lakhani, MD at Sequoia India. “This is an ambitious and aggressive team, one that values innovation at its core. Sequoia Capital India is thrilled to lead this significant financing round.”
“With this war chest, the core team can secure Polygon’s lead in paving the way for mass adoption of Web3 applications, a race that we believe will result in Ethereum prevailing over alternative blockchains. The funds will also allow Polygon to continue investing in cutting-edge zero-knowledge (ZK) technology that will be key to onboarding the next billion users to Web3,” the company said.
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The most crucial issue facing Ethereum is how to expand the network’s capacity to accommodate more transactions. Congestion and escalating fees accompanied the meteoric rise in popularity of new applications in decentralized finance (DeFi) and non-fungible tokens (NFTs). Polygon has stepped in with a wide range of scaling choices and some of the lowest transaction rates in the market.
