Polygon Secures $450M in Funding from Sequoia-led Group, Plans for Web 3 Expansion

UTC by Bhushan Akolkar · 3 min read
Polygon Secures $450M in Funding from Sequoia-led Group, Plans for Web 3 Expansion
Photo: Depositphotos

Polygon seeks to use these funds in pushing the development of Web 3.0 applications as it seeks to become the Amazon Web Services of the Web 3 world.

On Monday, February 7, Ethereum‘s layer-2 scalability solution Polygon announced major funding round. The platform secured a staggering $450 million in funding led by Sequoia Capital.

The Latest Funding Round by Polygon

Some poof the other big investors included Tiger Global, Galaxy Digital, SoftBank Vision Fund 2, Republic Capital, and others. Over the years, Polygon has emerged as a top Layer-2 solution for Ethereum scalability.

Furthermore, the growth of the DeFi and the NFT market has pushed the demand for Polygon. The Polygon blockchain helps in addressing some of Ethereum’s major issues like network congestion and high gas fee. As Ethereum continues to attract the larger developer ecosystem, Polygon helps alleviate some of its problems by taking responsibility for sharing the network load.

Over the last year, Polygon has witnessed a sizeable amount of funding coming its way. In 2021, tech billionaire Mark Cuban announced a major investment (undisclosed) in Polygon.

The platform has been using these funds effectively in building a range of scalability solutions including Polygon PoS, Polygon Edge and Polygon Avail. Besides, the team has been heavily investing its efforts and time in developing the zero-knowledge (ZK) technology. Polygon believes that it will help in onboarding the next billion users to the Ethereum blockchain.

Polygon’s Bold Move into Web 3

Web 3 refers to the decentralized version of the internet based on blockchain technology. In the official announcement, Polygon stated that this financial war chest will allow its core team to push for the mass adoption of Web 3.0 applications. Speaking of this development, Polygon co-founder Sandeep Nailwal said:

“Web3 builds on the early Internet’s open-source ideals, enabling users to create the value, control the network and reap the rewards. Ethereum, scaled by Polygon, will be the bedrock of this next stage in the Web’s evolution. Technological disruption didn’t start with Web2, nor is it going to end there. That’s why we are very excited to see some of the same firms that funded the previous round of innovation now being our Web3 vision.”

The Polygon co-founder also said that the company is aiming to become the decentralized version of Amazon Web Services. The Polygon blockchain network currently handles thousands of transactions per second, much higher than Ethereum’s 15 transactions per second.

Polygon also caters to nearly 3 million monthly active users and the blockchain has already settled over a billion transactions successfully. Additionally, Polygon believes that its demand will continue to remain high despite the launch of Ethereum 2.0. It doesn’t see the Ethereum 2.0 scalability upgrade as a threat.

Altcoin News, Blockchain News, Business News, Cryptocurrency News, Ethereum News
Related Articles