Future of Polygon, MATIC & Crypto in 2024 With Sandeep Nailwal!

Polygon 2.0 is arguably one of the most Ambitious experiments in the layer 2 Space polygon's upgrade from Matic to Paul is happening and if orgus to plan Could pave the way for polygon to become The gold standard for layer 2 Architecture in this video I sit down With sandep nail wall one of polygon's Founders we unpack polygon's core Technology and compare it to in sand Deep's WS some other industry Heavyweights sand deep candidly looks Back at some past mistakes and what he As a Founder needs needs to fix for Polygon so if you want to know where Matic is headed next what sand deep is Personally bullish on and why polygon is In his words like where ethereum was in 2015 then this is a video that you don't Want to Miss polygon 2.0 we've got kind of ZK EVMS as well def on polygon so where are Your main areas of Focus right now what Are the things that are getting you most Excited for the polygon Network yes so At polygon we have like you know our Legacy chains polygon POS polygon zkm Which cater to gaming and Defi and all That uh and which you know are like Polygon is like generally one of the Biggest protocol in that space and you Know we have a lot of protocols like This month itself I think there are 33 34 protocols D5 Protocols are launching

On polygon zkm whereas like gaming as as Many people know that gaming polygon is Like the the most leading protocol by Far like probably an order of magnitude Than the the the second one um and Especially with IM mutable you know also Getting into the polygon ecosystem so Those things are already there but in Terms of the focus we are also growing The polygon cdk team cdk is like chain Development kit which with which people Can launch their own chains like you Have like right now Manta Network which Is doing really really good like they Have $600 million on their tvl then you Have ZK fair was one one chain that that Actually launched is doing very Immutable is like you know getting a lot Of U attention currently in terms of Gaming uh we have we we announced with Okx the X1 chain and these many many Chains are coming in and then as polygon Like we are giving them the Limelight Like okay because they are launching the Chains and then Builders can build on Top of those chains so you know the There's a more uh push on enabling These Chains to um you know uh grow the Ecosystem further but then we still have Like our public chains any applications Which want to launch on a public chain Which is like uh where like you have a Large number of shared applications Composability and all that they'll keep

Launching on these chains so you're Giving them the components to go forward And grow the ecosystem because I have to Admit the layer 2 ecosystem right now And the market in landscape is is very Competitive so how is polygon really Ensuring that you guys are you know Staying ahead front running competition Uh I think like you know on the layer Two even though there is a lot of Competition but I think everybody is Working towards the same vision uh of of Like you know this creating this uh I Think like vitalik also posted this you Know make ethereum cyber Punk again and Uh you know Cipher Punk again and I Think the the main theme there is that You provide the means and then the People will adopt the technology we Believe in terms of like competition What we believe is that we are doing Zero knowledge technology right and uh We are like generally now widely Considered the best uh zero knowledge in Terms of technology and research company Alongside like you know other Heavyweight like starkware and so we Think that the key differentiator is the Technology but I also say that on the Layer one everybody is trying to do the Same thing and uh it's about like you a Very in a very long enough time frame um We all are actually trying to achieve The same thing that you know provide

That mean means for the builders to Build their application scale the way They want right now of course on layer Twos there is fragmentation also we keep Hearing about this that oh on the layer To is the experience people have to Bridge and all that but I think like These are all growing P pains the Transitioning pains there is enough Technology that is being built under the Hood that you know this bridging and all That stuff will almost like a click of a Button for the end users like they'll Click and then you know next thing they See that whatever they want to move and The applications will gamify all of These things so I think this will be uh Solved over the this year and yeah That's what we see I definitely big Believer of um this uh ethereum as a as A settlement layer and then uh you know Various different kinds of execution Environments on top of it uh with where That developers are going to deploy Their applications and users can use Like different uh like if you are if you Have an application which has 1 million Users right and uh per day let's say no Matter which chain you are on which is a Shared chain right you are going to Consume enough resources that your gas Fees will go either too high or uh you Will start congesting the network to Everyone else or somebody else has a

Breakout day on a particular day and Your application is suffering on that Day so I don't see a scenario where any Successful enough application will be Living on a shared chain they will all Be launching mostly on their own uh Application Jin and you'll never guess who is in the Car hello and welcome back to GM crypto Now we have so much fun and exciting Stuff coming up for you on today's show But first we need to talk about the coin Bu deals page guy that's right Jessica Because it really is the place to find The very best deals in crypto for Starters you can find bonuses of up to $40,000 at some of the best crypto Exchanges and that's not all Jessica Because you can also get discounts on Hardware wallets sign up bonuses for Some of the top exchanges and trading Fee discounts of up to 60% amazing guy where can people find This Deal's page well just head on over To coin.com Deals or use the link in the Description and you mentioned vitalic Blog post there as well so what was your Thoughts when that came out and how does That align with polygon's eth I think we definitely like you know I And vitalic like during eth India also We were talking and uh we you know keep Discussing that this like because on in

Ethereum ecosystem ethereum alignment is A is a is a very important topic and Many times projects end up choosing uh The path which makes them more ethereum Aligned more theoretically correct Instead of like catering to the users And I think that's that's one thing that We should uh like you know ethereum or The layer two ecosystem specific Specifically should look at that you Know cater to users more try to build More user friendly applications but of Course like there has to be you you you Need to have a um you know uh what Should I say like you know the NSTAR is That you know you want to build the Technically correct solution if you see Polygon POS actually the chain in when We launched in 2020 uh it was not the Most technically correct solution but it Was there something that works it didn't Derive full security from eum it has Reasonable security reasonable gas fees And users using that then we moved into The ZK kind of technology and all that In our ZK current ZK evm that we Launched we actually I would I I have Like you know we have had a lot of Discussions internally that we took some Decisions architecture decisions which Are to be more uh theoretically and you Know correct in terms of the ethereum Community instead of like being correct Towards the user and I think we need to

We need to kind of like strike that Balance like you know we were like on This side now this side like we need to Be in the balance where you do the thing Which is secure because people are Trusting polygon chains for having Billions of dollars of their liquidity And uh you know uh money over there but Then also make sure that the user Experience is always a very high Priority if not the highest priority Security is the highest priority but User experience is also you know up There at the top so yeah so I think like This this the blog post from vitalik was Like a very good uh you know uh reminder For everyone is that you know we are not Building like one single kind of system Here it's about building that building That environment rather than the Platform building the environment where All these uh toolings which are required To build this new trustless internet Like dep three and Trust L internet you Know those and those those uh uh you Know those environmental elements are There so that people can actually build On top of it and I think we fully em and And you know agree with that value and You spoke to italic at East India what About a deun upgrade what does that mean For polygon the uh like you mean the 4844 upgrade so 4844 um upgrade is Important for all the

Rollups uh because all these like you Know the pups there are two kinds of Like layer tws we consider validum also As layer tws because they are deriving From theum security but there can be a Debate on whether like validum could be Called layer twos okay they are layer 2.5 like I mean I I don't want to get Into the semantics but there are rollups And validium but rollups are basically The chains which put their data as well As the proofs on ethereum but posting Data on ethereum is very costly so this 4844 actually is coming up uh with Ethereum they will provide an external Space apart From the Block space where You can post the data which is like Which makes layer tws cheaper like Especially the layer two rollups cheaper So that's definitely good for all the Layer tws Layer Two rollups especially Like polygon zkm is also rollup SO gas Fees will become super more affordable And all that um however I also feel that With all this you know influx of Inscriptions and all that I think a lot Of other different kind of use cases Will start consuming that uh bandwidth Of 4844 and it will not be as like you Know cost effective that we it will be Still huge cost Effectiveness but it Will not people are expecting 10x cost Reduction I I am like less I a little Bit skeptical that it will bring in 10x

Cost reduction it will definitely bring From 2 to 5x uh cost reduction um and That's why like you know we still Strongly believe in the ZK validium Where you keep the data elsewhere and You put the ZK proofs because with the ZK the biggest benefit is that you are Not relying on a socioeconomic security Optimistic rollups rely on socioeconomic Security Z relies on mathematical Security cryptographical security so the Sequencers cannot steal money and all That even if the data is somewhere else All you need the data is for exits so There are very Corner kind of extremely Rare kind of attack factors which would Be there like Ransom attack and all that Even then like you know it's not like Users lose all of their money and all That that's just not possible so that's Why we even 4844 is coming it's really Good for the rollups uh but I think as a Layer two ecosystem uh the uh the Especially with ZK the the design space Is already there uh for providing even Lower gas Fe transactions and we have a Lot of Matic holders that are coin buau Fans audience members and they are very Curious to know kind of Matic and the Migration to pull what the road map is And what it means for the Matic holders Out there yeah so the road map is uh Very clear like the Matic we were Originally called Matic Network right

Like in 201 uh 17 18 when we started in 2020 uh in 2020 we rebranded to polygon Why because previously Matic was a Single blockchain ecosystem and we Wanted to always go into this Multi-chain environment because that's Where we saw that if we want to scale The web3 to a planetary level where this Becomes the protocol if you want to Build the protocol where all the people Are building their application needs to Be multi-chain and that's why the name Polygon is like multifaceted multi-chain Multi VM multi validator profile privacy Profile all those things that's why like You know we reband to polygon but we Also had to migrate our token which is The Matic Network token Matic token to Uh you know poll Token and uh because you know that Reflects like this is the old token so This upgrade is happening this year we Already like the pole token is already Live and all that the validators are Getting their will get their rewards and Pole tokens and all that but uh for for The average individual for everyone who To migrate their tokens from Matic to Pole we will uh you know announce a Proper like guideline road map and all That where people will be able to Migrate and by the this is not like a New token this is just a Migra not even Migration this is like a technical

Upgrade actually of the same token Because Matic token is a immutable token Right if you could actually go and just Change the name and all those things It'll be much easier to not uh you know Have a change over there um but because It's a mutable it cannot be changed the Token the Tok cannot be changed so it Has to be a technical upgrade where Users will on their own will they can Upgrade to the pole token and this new Pole token is actually why it is Relevant is that is is like fully built To be a multi-chain token right so the Token economics and everything that has Built there there is a 1% inflation Added per year which is used to Incentivize the validators to keep Validating and provide security into the System and uh then uh it also has the Ecosystem treasury 1% to which could be Used to grow the ecosystem uh heavily uh Because all the like as you said like Computer protocols they are all like Freshly new tokens and all that and they Have large ecosystem treasuries and all That so that polygon remains competitive Uh over the over the years also and so That's also one thing And then uh this poll is basically with Our reaking mechanism that is coming up Uh this poll becomes like as we say Third generation hyperproductive token Right when we say hyperproductive token

Like Bitcoin as a Bitcoin holder you Cannot participate in bitcoin's Validation and security system right you Have to be have you have to run physical Miners but uh in case of let's say Ethereum like now especially with proof Of stake if you hold ethereum you can Use that ethereum to stake in the Ethereum security and and provide uh you Know security uh provide security to Ethereum so you can uh technically uh You know participate in the network in Case of poll you will be able to Participate in the network but we why we Call it hyper productive token is you Don't only participate in running the Chain but you can participate in running Multiple chains actually because of the Multichain environment you can also Participate use the same token to Provide maybe data availability services To some chains or provide proving Services and different different kind of Things that you can do with that token So that's why we call it like a Hyperproductive token Bitcoin started With that with no utility no uh you know Utility into the network then ethereum With stake earn yield this one you not Only earn the base amount of yield but You can also earn from the transaction Fees across the Chain by providing Different kind of services and I'm Curious to hear your thoughts as well

When it comes to Matic and its close to Reaching maximum Supply what this means For Matic moving forward and the kind of The ecosystem as as a whole so the the Maximum Supply I think Matic is already At the maximum Supply like we are like This is like in crypto markets always Like the new tokens like you know Because they have low float and all Those things like there there are like Like more financial markets things uh But like good part is like Matic is like A very mature uh uh you know utility Token in that sense it's life for last Five years it has 90% of it Supply Already there in the market so which you Know makes it like more and more less Susceptible to uh manipulations and all That whereas like you know you have Tokens which are only 10% live 90% And They have like huge supply shocks coming In and manipulations involved whereas Like mtic is like a large scale token They are not like any manipulations uh Possible over there so I think that's a Good thing and uh it should be like the Same for most of the protocol like I Think in the OG days of uh crypto uh Whenever then there was a new token I'm Not sure like even for ethereum I don't Think there was any vesting period like These tokens were unlocked on Day Zero And then the communities form around and People who are the holders or the

Long-term Believers ideally that's the Ideal state or or that's the end state For any asset whatsoever so I'm very Happy that because of this polygon's 5e Journey it's already at a place and this Is when I feel that the real polygon uh Technology is just getting born the real Polygon is just getting born and like it Almost like for me like I compare it With like where ethereum was in 2015 Let's say when it was just getting Started this token Supply was out there People some people believed in the Technology maybe a small number but they Believe in the technology the base Version was there lot of things had to Be done on top of it same Cas I think With with with Matic is there like token Is pretty mature already and then now The full technology road map is Materializing it's it's coming out I Think we are in for a a good ride for That oh wild ride so polygon the real Polygon is just being born as you said So what kind of narratives are going to Come out from this maybe they're already Here but this is just kind of Acceleration levels I think one of the On the narrative side like I myself uh And then recently like some people Posted on Twitter also uh that you know Oh like because parallel VMS like Polygon also has parallel VM so we Talked about it people like oh now

Parallel VM polygon is talking about Parall VM previously layer to ZK the Thing is that polygon you know in the Last two years has been like 3 to 400 500 people team and we are working on so Many things because our end game is to Reach the place or reach the Infrastructure which can actually play a Important role in creating this Trustless interplanetary ecosystem right And uh I think because of that we have So many things to talk about but the Problem is that you know like in terms Of branding and we have done a bad job At that that we have had like multiple Different things like okay first month You know people are talking about like Brands launching on this and then people Are talking about games and then people Are talking about D5 people are talking About ZK so it keeps on moving and I Think the one thing that we need to Definitely solve for polygon Is uh is is basically uh this uh this Piece where we need to have like One clear sucing story of polygon which Is like the high level story everything Else are the sub narratives this is what We need to fix for polygon I think this Year and um I agree with that like but But in terms of the narrative like there Will be no like in terms of like from Our side like there'll be no separate Narrative we need like we are like

Polygon is top three in D top three in Nfts rank one in Brands top I think rank One except only ethereum in rwa real World assets um you know in the app Chains already it's like in the top two And I did see the Twitter kind of Narrative coming up there so you've Answered that question very well is that You're focusing on so many things but as As one of the founders I have to ask you If you have to put one on top this is Like which one would it be I I think This has to be the like you know but Next year like polygon is once the Polygon as I saying polygon is being Born this is basically people will be Able to realize that this is a infinite TPS like ever growing infinite TPS uh blockchain Network which provides Like you know with those multi Environment which also provides Interconnectivity but as a simple story It is like a infinite TPS Network right Because this community likes TPS right But if you go inside that you will Realize that okay how do you do multi This infinite TPS that by having Hundreds and of chains but then okay how Do you solve for interconnectivity Interoperability between these chains That is the aggregator level and then What are the benefit of multi chain ecos System the benefits are that you can Have different kinds of VMS yeah we keep

Talking about like virtual machines like You have evm but we are like people know About miden blockchain people know near Protocol is working with us on launching A ZK bom so we can have vom VM there are Multiple others big products that are Being worked in the polygon ecosystem so That's there in terms of the virtual Machine then application or These Chains Can have different decentralization Profiles some chains might have 100 Validators some chains might have a Single sequencer it's up to but all of Them are all secured by ZK the Decentralization just offers you Censorship resistance but otherwise Users have same level of security Everywhere um and you know like we want To all we need to enable is the fast Interoperability so the V1 that will Launch it will have so slow Interoperability then the next version V2 of that uh you know interoperability Layer launches uh we call it aggregation Layer the aggregation layer launches it Makes uh the the chains very fast Interoperable so that is the narrative Like infinite TPS ever growing Blockchain Network that's all is the Core level thing everything comes as a Sub narrative to that and as of today This is the first week of January 2024 So first big interview for coin buau for The the year thank you very much for

That what are some of the standout Projects that are building on polygon as Of this week for you because I know it's Impossible to pick over the years but Yeah there are like 50,000 projects on PO what comes to your mind today but Basically like I think like if you see Uh gaming Uh we have like like gas hero is doing Really really well right now my pet Hooligans and you know Midnight Society There are so many like that like I think Even shrapnel they have a big product uh Deployment on polygon and things like That so they are there then um and there Are multiple such projects uh and then In Def this month we have around 35 D5 Protocols launching on uh Zkm um and but I think for me the Highlight for the of the year is the the Chains that are launching like Manta Network is doing really great uh Similarly okx X1 chain comes in soon um Similarly you have immutable like Absolutely like the Juggernaut in gaming Yeah in the making um we also have uh You know idex like you know exchanges Launching like a completely self Custodial exchanges with the you know Centralized exchange kind of experience But still uh self custodial you know for The users so many many these things but I think the cdk chains is the Highlight For me what is your outlook for the

Wider crypto industry for this year yeah I think like Uh 2024 might be a year but I definitely Feel that this is 200% this is the Second last last year where bitco where Blockchain scaling is still the biggest Problem but with a high degree of Certainty like I think I can say more Than 50% chance that this year we say That blockchain scalability is truly Solved And from there it's all about like few Big games or applications going really Mainstream MH and crypto will start Getting that respect from the mainstream That's what that's what I believe like They it will become a mainstream Technology after that like once it Becomes a mainstream technology it'll be A Mania cycle but after that people Realize that okay this is one just one Computation technology right now we have Cloud computing and other kind of like Server system which are trustful Computing this is trustless Computing People will build applications which Will have aspects of both in them and I Think that's where uh you know where Especially where the value is involved Where there is trust is involved in Doing any kind of computation where There you'll need trustless compute but Everywhere else you don't need like if

You are doing a uh you know a chat Application you don't need every you Know small and even the most stupidest Of chats to be saved in in a in a Blockchain right like forever all you Need is especially when there's a value Involved or there is something where uh A history or auditability of something Is important or you need a trustless Compute on some particular smart Contracts there you will use this Trustless computation technology Otherwise you'll just simply use the web To technology and I think I hope that With this 24 to 28 4E cycle or uh you Know 24 to 26 actually this cycle uh Yeah maybe three to two to three four Year cycle crypto becomes a mainstream Mature technology and beyond that is not Considered the a technology to just Speculate late on but it rather becomes A mainstream technology which is just Meaningfully used um across the Verticles well that's all for today's Video my thanks to sand deep for taking The time to talk with me if you learn Something new then let us know by Smashing that like button if you want to Keep learning then subscribe to the Channel and ping that notification Bell So you don't miss the next one and if You want to help others learn then take A second to share this video with them If you were inspired by deep to start

Your investing Journey then check out The coin bu deals page it's got trading Fee discounts of up to 60% and bonuses Of up to $40,000 on some of the best Crypto exchanges and the biggest Discounts on Hardware wallets the link Will be down in the description thank You all so much for watching and I'll See you in the next one this is Jessica Signing [Music] Off

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