The company said the move would enable a future transition to public networks that are less risky and more efficient.
Big-four consulting firm Ernst & Young (EY) will use Polygon’s protocol and framework to deploy its own EY blockchain solutions onto Ethereum.
According to a press release on Monday, EY will adopt Polygon’s commit chain scaling solutions to allow EY to boost transaction volumes, providing “predictable costs” and settlement for enterprise customers.
EY will also have an option to move transactions onto the public Ethereum mainnet, the company said.
Polygon’s commit chain – another term for a blockchain scaling solution – has been retrofitted by EY to create permissioned, private industry chains that take advantage of new models for handling transaction verification.
“The EY commitment to the public Ethereum ecosystem and to open standards was a big driver in evolving shared approaches,” Polygon’s co-founder Sandeep Nailwal said.
Ethereum has long been plagued by congestions and high fees associated with transactions on its network. The London hard fork last month was an attempt to fix this but has so far shown mixed results in reducing costs.
Scaling solutions have been praised for their ability to lighten the network load from major names, including bitcoin, due to their ability to process transactions on a sidechain. Arbitrum, an optimistic rollup solution, for example, has seen significant growth in the past week rising from $24.5 million total value locked at the start of this month to around $2.2 billion on Monday.
EY said its move increases efficiency and reduces transaction costs by providing an optimistic rollup. The company also said its new “industry chains” would provide enterprises with the security of a closed system while retaining a close relationship with the public Ethereum mainnet.
“Working with Polygon provides EY teams with a powerful set of tools to scale transactions for clients and offers a faster roadmap to integration on the public Ethereum mainnet,” said Paul Brody, EY’s global blockchain leader in the announcement. “We discovered our shared priorities around open system and networks and the Ethereum ecosystem would make collaboration in this area much easier.”
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.