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Current Affairs

Web3 platform Polygon

Date: 10 February 2022 Tags: Miscellaneous

Issue

About $450 million investments have been made in a decentralized scaling platform for ethereum blockchain called polygon.

 

Background

 Sequoia Capital India, Softbank Vision Fund II and Tiger Global are the marquee investors in the Indian firm.

 

Details

  • The polygon is a “Layer 2” network built on the Ethereum blockchain to mitigate the traffic load on the main blockchain.

  • It was founded by Jaynti Kanani, Anurag Arjun, Sandeep Nailwal and Mihailo Bjelic. The ‘Layer 2’ network is needed to after Ethereum become congested with the addition of a large number of users. 

  • Polygon also owns a cryptocurrency token MATIC, with a market capitalisation of $15.6 billion.

 

Reasons for investments

Many investment entities want to invest in web3 ecosystem that comprises cryptocurrencies, non-fungible tokens (NFT), and metaverse applications.

 

Other web3 investments in India

  • Till now, the biggest investment was made in the cryptocurrency trading platform CoinSwitch Kuber.

  • Similarly, Bengaluru and San Francisco based crypto trading platform Mudrex recived funding from Arkam Ventures, Tribe Capital, and Bolt by QED Investors.

 

Web3

  • Web3 is a new iteration of the World Wide Web based on the blockchain. They incorporate concepts such as decentralization and token-based economics.

  • Polkadot founder and Ethereum co-founder Gavin Wood had coined the term web3.