Coinbase, the world’s second-largest crypto exchange by daily volume, said in a Blog last week that its Layer 2 (L2) scaling solution, developed by Indian startup Polygon, will be integrated as its first scaling solution.
The Coinbase Wallet and extension already support the Polygon network, but now the company plans to integrate the scaling solution to reduce prices and settlement times.
According to the blog post:
“One of the most exciting projects our Protocol team is working on is to help scale Ethereum through an integration with L2 and other scaling solutions. Scaling Ethereum will help address some of the biggest challenges, including high prices and long settlement times. We want to allow our customers to quickly and cheaply withdraw directly onto a supported L2 solution.”
Though Coinbase did not share an exact date for L2 integration, it added its protocol team is committed to contributing to open source projects, integrating cutting edge technologies with Coinbase products, and supporting developers through Coinbase’s grant program.
The company added that they hope that it will level up the playing field and ensure retail users were able to participate in the ecosystem without being priced out. They also added that “Our goal is to explore similar scaling initiatives with L2s such as Optimism, Arbitrum, and Starkware over time.”
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MATIC rebranded to Polygon last year, and US-based tech billionaire and serial startup investor Mark Cuban invested in the startup. Originally known as Matic Network, Polygon was formed in 2017 in Bengaluru by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun in order to overcome Ethereum’s scaling issues. As part of the initial exchange offering, the startup sold a portion of its MATIC tokens held by the founders to raise $5 million from Binance. The startup was bootstrapped using funds from friends and family.
Polygon Founders
In the cryptocurrency and blockchain sectors, Polygon has been making big waves with its scaling solution and its native token MATIC. It is now the founders’ goal to turn Ethereum into a multi-chain ecosystem with secured Layer 2 chains and standalone chains. A Layer 2 solution involves handling transactions off of the Ethereum Layer 1, or the mainnet, while leveraging the mainnet’s robust and decentralized security model.
