Better than Ethereum? Polygon launches zkEVM beta — the Layer-2 update detailed review

Polygon zkEVM mainnet beta, a Layer-2 network compatible with the Ethereum Virtual Machine (EVM) that aims to solve Ethereum scalability issues and reduce gas costs, has officially launched. Vitalik Buterin made his first symbolic transaction, starting “the next major chapter for both Polygon and Ethereum.” How the update will affect the ecosystem and why it is important for users we will tell further.

Polygon’s secret weapon: what is the zkEVM?

Polygon’s zkEVM [a zero-knowledge Ethereum Virtual Machine] is a decentralized technology that is designed to perform Ethereum transactions with the highest level of transparency. zkEVM in turn is a virtual machine that executes smart contract transactions in a way that is compatible with both zero-knowledge [zk is an encryption technology that allows parties to prove and verify information without having insight into the information itself] computing and existing infrastructure.

It is a Layer-2 solution, but it works in a way that is capable of moving computation and state off-chain to external networks while keeping transaction data in-chain on the Layer-1 network.

The ultimate goal of the product is not Polygon zkEVM compatibility with EVMs, but equivalence. Compatibility allows most existing applications to work but sometimes requires code changes. In addition, compatibility can lead to the disruption of developer tools. 

If equivalency is achieved, however, most Ethereum-based applications, tools, and infrastructure can be instantly ported to Polygon zkEVM without the need to change the code.

zkEVM features: the same as Ethereum, but faster, cheaper, and… 

The main advantages of this technology:

• There is no need to make changes to the code. Modifications can cause breaches in the system, reducing the level of security.
• If there is no need to change the code, there is no need for frequent audits. This saves money.
• Saves time by not needing to change the code.
• The power of Ethereum’s active community extends to Polygon zkEVM.
• Fast dApp deployment due to zkEVM’s compatibility with EVMs.

In addition, Polygon zkEVM uses proof-of-concept ZK to reduce transaction costs and increase bandwidth. And given the significant changes, Ethereum Layer-1 security is maintained.

For a batch speed of 10M gas, the proof time is under two minutes on Polygon zkEVM.

As for the first transaction, it was made by Ethereum co-founder Vitalik Buterin, who included a hidden message: “A few million human limits, unlimited human scalability.”

.@VitalikButerin did the symbolic first ever transaction on @0xPolygon #zkEVM and it has a message on it

“Millions of constraints for man, unconstrained scalability for mankind”

Goose bumps!! https://t.co/HLNiVyRLie pic.twitter.com/Ue0C1CuDTd

— Sandeep Nailwal | sandeep. polygon (@sandeepnailwal) March 27, 2023

In total, since its announcement in July 2022, $1B has been invested in the zkEVM. The first working test network came out as early as October, and now, six months later, users are seeing the release of a beta version.

How will the update affect the ecosystem?

Lately, more and more Web2 projects are moving to Web3. Among them, for example, is Adobe (NFT marketplace), Adidas (NFT collection), Walt Disney (NFT marketplace, AI, VR, AR development), Reddit (NFT avatar marketplace), and others. And for many of them, the Polygon blockchain has become their new opportunity to grow.

It is likely that with the arrival of zkEVM, the number of Web2 companies and Web3 projects that come to collaborate with Polygon will increase. Twitter user Matic Connoisseur V2 has compiled a list of projects that have already been implemented on this technology. Here are some of them:

• QuickSwap DEX. 
• Uniswap CEX.
• Immutable(GameFi project).
• Aave protocol.
• 0vix (lending protocol).
• Lens protocol.
• One planet NFT (marketplace).
• Covalent_HQ.

This is a short list of already reputable projects. However, according to the author of the list, other projects are planning to join zkEVM in the near future. He is also confident that with the speed and efficiency that Polygon zkEVM offers, as well as Buterin’s support, “the game will change ENTIRELY.”

These projects alone are absolute beasts, but with the speed and efficiency that Polygon zkEVM has to offer, the game will change ENTIRELY especially with the blessings of the one and only @VitalikButerin

Hello dad :3 pic.twitter.com/ZmwL0oByxO

— Matic Connoisseur V2 (Sandeep’s Intern) (@0xMATICsauce) March 27, 2023

However, the solution does bring with it certain risks, among others. Among those are:

• The complexity of zk and its comparative recent introduction into the blockchain industry.
• Regulatory risks associated with privacy zk proofs. Projects with a focus on privacy are often subject to regulatory monitoring (Monero, Tornado cash, etc).
•  Competition. Solutions such as Scroll, StarkNet, Taiko, and others can take the market away from Polygon zkEVM.
• Lack of potential for airdrops and a dynamic DeFi ecosystem. It may be harder to attract new users and developers for this reason.

Perfect time to buy? MATIC current price

MATIC, Polygon’s native blockchain token, did not greet the news of the zkEVM launch the way users may have expected. Thus, the asset did not rise but instead fell after the network launch. It is difficult to determine what this is, but during the last 24 hours, MATIC fell by 2,81% to $1.0533.

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However, some users see this as an opportunity. Thus, according to Crypto Bitcoin CT analysts, who conducted a technical analysis of MATIC’s condition, the asset is now moving towards the lower support line, and it is “an ideal place to buy.”

#Matic is slowly and quietly moving towards our lower support, our ideal place for purchase. ✍️🙏$Matic #maticusdt #maticbusd #Polygon #Bitcoin #Binance #Altcoin #Crypto pic.twitter.com/iYeMYblv1R

— Crypto Bitcoin CT (@CryptoBitcoinCT) March 27, 2023

At the current value, MATIC is 60% lower than the historical high recorded in December 2022. At the peak, when investing in the asset since launch, one could make x172 of the invested funds. However, if someone has been holding the token so far since the launch, they still haven’t gone negative.

As a reminder, the Polygon network uses the asset to manage, pay POS chain transaction fees (on zkEVM they will be paid in ETH), and make bets to check the chain for security.

At the same time, Polygon is one of the most profitable networks. In the last year alone, the blockchain has earned $26M. In comparison, Arbitrum is $19M and Optimism is $18M. In addition, it is one of the largest ecosystems with more than 7,000 active dApps. 

There are a lot of Web2 projects connected to the network right now, but with zkEVM, there should be even more. Therefore, the current drop in value may only be temporary. We will continue to monitor the development of this blockchain.

This is not financial advice, so do your own research before investing even in such seemingly reliable technologies.