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How will Ethereum 2.0 affect the Polygon scaling solution?

 


What is polygon?

Polygon is a scaling solution for the Ethereum Blockchain. The network offers a solution to address Ethereum's scaling issues and enable faster and cheaper transactions. It offers a quick solution to make the dApps and below DeFi protocols more efficient.


Polygon Course

The Polygon scaling solution is a layer 2 technology with a second level and sidechains that allow the Ethereum network to work much more efficiently by distributing the transaction load. Polygon's network token is called MATIC . This was also the name of the network before it was re-branded to Polygon.


Why is Polygon needed for Ethereum?

Ethereum was the first blockchain to introduce smart contracts in recent years . In addition, Ethereum could become the basis for decentralized applications. As a result, Ethereum was able to build a huge ecosystem. But over time, transaction speeds dropped and transaction costs increased. This is also due to the high transaction load in the network when executing the smart contracts.


All these points lead to a lower scalability of the Ethereum blockchain. As a result, more efficient blockchains like Cardano, Solana, and Avalanche could pose a greater threat to Ethereum’s dApp supremacy. Ethereum circumvents these problems with its own scaling solution. 


What is Ethereum 2.0?

For years, Ethereum functioned with the Proof-of-Work consensus mechanism, which is also used by Bitcoin. However, this mechanism has its limits and as the load increases, the transaction costs increase and the speed decreases. Therefore, there is an urgent need for a change within the Ethereum network.


Ethereum 2.0

Ethereum 2.0 is intended to be a modern version of the Ethereum network. The consensus mechanism is switched to proof-of-stake, which is much more efficient than proof-of-work. Further updates will be made to the blockchain. The Ethereum 2.0 update began at the end of 2020 and in August 2022 the launch of Ethereum 2.0 should finally take place.


What are the implications of Ethereum 2.0?

With Ethereum 2.0, the consensus mechanism at Ethereum will be changed. For this purpose, the beacon chain was created parallel to the mainnet, on which the proof-of-stake is established. Now the Beacon Chain is merged with the Ethereum Mainnet. This is called Ethereum merge.


When Ethereum 2.0 is launched, the Ethereum network should become much more efficient, faster and therefore more scalable. This allows Ethereum to run smart contracts faster. Proof-of-Stake massively increases the scalability of the entire network, making Ethereum even more attractive for dApps.


The launch of Ethereum 2.0 should also increase the Ether course in the coming weeks. The Ether course has risen sharply again in the last few weeks. This has a lot to do with the expectations regarding the Ethereum merge and the launch of Ethereum 2.0.


How will Polygon be affected by Ethereum 2.0? 

With the introduction of Ethereum 2.0, the question now arises as to whether the great hype surrounding Polygon can die down in 2022 and whether the new version of Ethereum can even make Polygon superfluous. Because with Ethereum 2.0, the scalability in the mainnet of Ethereum increases significantly. This could lead to the fact that polygon is no longer needed for many applications and therefore loses importance.


However, these worries are pretty much unfounded. They are based on the premise that Polygon itself is only used to scale Ethereum. But the development of the network has actually gone beyond that in recent years. Already at the time of the MATIC network, a universal infrastructure was created to create a simple exchange between blockchains. 

Polygon's developers wanted to create a dedicated space for developers to create their own blockchains and applications. Thus, Polygon quickly became a link between Ethereum and other blockchains. This allows them to use the Ethereum blockchain without developing directly on the Ethereum blockchain. 


Due to its multiple features and its evolution into a multi-chain network, the launch of Ethereum 2.0 shouldn't impact Polygon's future that much. Polygon has emancipated itself from Ethereum in recent years and offers its own solutions.


How high can the Polygon price go in the future?

Over the past few months, we have seen heavy losses in cryptocurrencies, but these have stabilized over the past few weeks. At the same time, prices rose again slightly. In July 2022, the increase in Polygon's MATIC price was particularly noticeable. Because the Polygon network has seen massive growth in recent months. 

Despite Ethereum 2.0, the course of the MATIC token should continue to rise in the coming months and years. There is much to suggest that the Polygon network can continue to grow massively alongside the Ethereum Mainnet, as it offers another dimension as a multi-chain network. 


Many analysts assume that the MATIC token has a price potential of $100. However, this value should only be reached in a few years. Right now, the MATIC price is around $1.


Is it worth investing in Polygon (MATIC)?

An investment in the MATIC token from Polygon can be very worthwhile at the moment . Because the price remains very low in the current bear market. However, it does not seem impossible that the market will continue to rise in the coming months and that the MATIC price will rise by the end of 2022.


If this is not the case, however, a rise to the next bull market is extremely likely. An investment in the MATIC token from Polygon should therefore be particularly worthwhile in the long term.

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