Start your formal crypto education for free and earn tokens at https://cryptoversity.com/
Chris:
Hi there guys. This is Chris Coney speaking, and welcome to another edition of the Weiss Crypto Sunday special. My guest analyst today is Maria. Maria welcome back to the Sunday special.
Maria (00:18):
Hi Chris. Thanks for having me again.
Chris (00:20):
Great to have you back. So today we're going to discuss what's possible with Polygon network. Now some of the viewers may never have heard of Polygon network or know how it'll help them in their investing endeavors. So let's lay a bit of groundwork and then we'll get into exactly what you can do with Polygon. So I think... Was it you or Juan, did the first episode of the Sunday special about layer two solutions? Was that you or Juan? I can't remember.
Maria (00:48):
I think it was Juan.
Chris (00:50):
It was Juan. Okay. So we talked about layer twos, which Polygon is a layer two network, but it's a layer two on top of Ethereum. So Give us just a quick overview of why is the polygon network needed in the first place?
Maria (01:07):
Well, Polygon, first of all, polygon is an aggregator of scaling solutions, different scaling solutions on Ethereum network. It's specifically made for scaling of Ethereum network and the current solution, which is widely in use is a proof of stake implementation of a polygon, but apart from this one, Polygon will offer also roll up solutions such as ZK or optimistic roll up, and even stand alone chains like enterprise chains as well, et cetera. So it's a whole set of different scaling solutions made on top of Ethereum, but currently this POS network that we are all using and it came at exactly the right time when it was needed when Ethereum transactions went through the roof in the Q1 of 2021, and when we waited for far too long to perform a transaction on Ethereum. So I think-
Chris (02:21):
Is that just because of demand?
Maria (02:26):
Yeah, because of the demand, of course.
Chris (02:29):
Okay. So it's working then?
Maria (02:33):
For Ethereum applications and it's tokens and Ethereum itself. So there was too many transactions and that's why the throughput was very high, and as we all know Ethereum is not currently scalable to cater to that kind of throughput.
Chris (02:51):
Mm-hmm (affirmative). So it's reached its maximum capacity. So that's a good thing because it means there is high demand for DeFi, for Ethereum based crypto technologies, et cetera. I suppose, yeah, well it's going to get to that point eventually, any successful products will get to that point. I always use the example of the internet protocol and how when it was conceived the possibility of streaming video over the internet protocol was just impossible to imagine. It just didn't have the infrastructure, the capacity, none of that. So the internet's actually layered in layers as well to allow that to actually happen like this in terms of streaming video. So I guess we're going through that process right now. So Ethereum at the base layer has been maxed out and now we're adding these layers on top, so from a user's point of view, they don't want to wait forever for a transaction to confirm, and also what impact does that have on transaction fees, right, pushes them right up, doesn't it?
Maria (03:50):
Yeah, yeah. I think Polygon is a neat solution and I think it will be very interesting when they kind of develop all these different... They're basically planning to create internet of blockchains, to make Ethereum the central layer of all these different standalone blockchain. So basically Ethereum, they will enable Ethereum to compete with Polka dot and similar projects, all these internet of blockchains projects as well. So I think it's very interesting the set of the tools they're going to offer.
Chris (04:33):
I'm with you. So I remember, I can't remember who said this, I think it was a book I've read by Tony Robbins, because he was typically into the personal growth stuff, but then he wrote a couple of books on money and investing because he saw that people's ability to budget their money and invest it to grow their wealth was a huge area that wasn't being very well dealt with. So one of the biggest takeaways from that book when I read it, he said one of the main, the most major drags on your portfolio is going to be fees and taxes, because every fee that you pay and every amount of tax you pay is money that isn't compounding or isn't making you money anymore, because it has been taken out of your portfolio. The reason I think about that when it comes to Ethereum scaling and then Polygon is when you get... Where did we get to the point in the first quarter of 2020 when transaction fees were the equivalent of $50 or $250 just to get a single transaction through. Well, that is taking chunks out of your portfolio.
▶️ 3Speak