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Polygon unveils AggLayer: A solution to long-standing Ethereum Layer 2 challenges

  • 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.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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