Blockchain Layer Enhancement

This month we’ll take a look at our recent integration with Polygon.

Polygon (previously known as “Matic Network”) is growing rapidly, and has recently overtaken the likes of Stellar, Binance Smart Chain, Solana and Tezos in terms of its market capitalization. In the last months Polygon made some serious strides with some blue chip DeFi protocols migrating, including Aave, Curve finance, and 0x.

But what does our integration with Polygon mean for our security token customers?

Over the last 6 months, we have seen gas fees skyrocketing as a result of network congestion and ETH price increase with an all-time-high reached last month. Transaction processing times have also been varying a lot depending on the network load. The congestion and issues related to fees should get resolved through the gradual implementations of various deliveries of Ethereum 2.0 in the course of this year and next. However, for our customers and for ourselves having live activity on the network, these congestion issues have become a handicap over the last few months.

Foreseeing that this will continue to be a problem for our customers, we benchmarked several so-called Layer 2 solutions and sidechains as well as some separate Ethereum Virtual Machine (EVM) based blockchains and we selected Polygon as the best alternative solution for deploying our products (ONCHAINIDs, the T-REX protocol and the T-REX platform) on Ethereum Public for the time being.

We have fully tested the integration with all of our solutions on Polygon to make sure that the deployment of new security tokens or the migration of existing ones will be as seamless as possible for our customers and their investors. The first T-REX security token has already been deployed successfully on Polygon in May on behalf of one of our customers.

Our customers will benefit from Polygon being:

Secure – the network is secured by a proof of stake consensus and by the Ethereum network;

Performant – transactions are executed in seconds for fees that are usually under 1 cent, making transaction fees virtually irrelevant (we have seen a fees reduction by a factor of 1/10000 compared to what they have been over the last few months on Ethereum Public);

Easy to use – users can still use their Ethereum-based wallets, such as a Metamask or custodial wallets like the ones connected to ONCHAINID;

Additionally, the consensus mechanisms used on Polygon are far-less energy-consuming and as a result more environment-friendly. The Polygon team has an aggressive roadmap to implement interconnection with other blockchains and support interoperability. It has also proved over the last months that it is delivering the products planned as per its roadmap with the introduction of full stack scaling last week (26/05/2021).

Obviously, we remain fully compatible and supportive of the Ethereum Public network, and our customers will be offered the choice between deploying their security tokens on one or the other network. Existing customers will also be offered the possibility to migrate existing tokens from one to the other. Finally, this integration makes us confident that our products and services could be adapted to other EVM-compatible Layer 2 solutions, sidechains and blockchains going forward according to our customers needs.