- Polygon has proposed a blockchain protocol to boost interoperability and unify liquidity in the ecosystem.
- The Aggregation Layer will connect Layer 2 chains while preserving their customizability.
- MATIC could see a boost in adoption with Polygon’s unified bridge that will go live on mainnet in February.
Ethereum ecosystem’s largest scaling solution, Polygon, announced a Aggregation Layer protocol. This new protocol targets the challenges faced by Layer 2 chains, some of which include fragmented liquidity and interoperability.
Polygon’s Agg Layer mainnet will go live in February according to the project’s official announcement on X.
Also read: Bitcoin price scenarios to consider with approaching BTC halving event
Polygon announces AggLayer to solve problems faced by Layer 2 chains
Polygon introduced a new thesis for blockchain design, a protocol that powers interoperability across Layer 2 chains, Aggregation Layer (AggLayer). The chains connected by the AggLayer will stand to benefit from unified liquidity across the Polygon ecosystem.
Polygon developers explained how Ethereum developers' rollup-centric roadmap received the community’s response in the form of rollup frameworks, like Polygon’s CDK. These protocols offer a varied degree of customizability and compatibility with the Ethereum chain.
While the approach offered a solution to Layer 2 chains’ need for independence, it fragmented liquidity, and users faced the issue of capital inefficiency and struggled with a bad user experience while bridging assets across chains. To tackle this challenge, Polygon’s AggLayer plans to introduce an environment to transact across different chains. The two major value propositions are:
- Sovereignty and scale of the modular framework of various chains.
- Combining the liquidity and improving user experience of a single system.
Any chain that chooses to connect to the AggLayer will seamlessly sync with a large network of aggregated blockchains in the Polygon ecosystem. This matters to users and MATIC holders as this will help users see all the chains as a single system, the interactions happen under a unified design interface presented to the user, likely to boost adoption and relevance of the protocol’s native token MATIC.
AggLayer will see a mainnet release in February. MATIC price is $0.7832 at the time of writing, up 6.10% in the past week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
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: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.