Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,09 trillion. Bitcoin is up by over 2% to reach around $27,200. Ethereum increased by nearly 6% to close to $1,700. XRP gained almost 2% in value during a highly volatile week. Almost all altcoins are trading in the green, with virtually no exceptions. The DeFi sector maintains the total value of protocols (TVL)…
Accounting firm Ernst & Young (EY) just announced that it would be using the Polygon protocol to implement its blockchain solutions on the Ethereum ecosystem. The firm said the new development would enable a future transition to less risky and more efficient public networks.
According to a recent press release, EY will adopt Polygon’s chain scaling solutions to uplift transaction volumes. This union will allow more predictable costs and settlements for business customers.
The firm also disclosed it is engaging with Polygon blockchain scaling solution to offer permissioned, private optimistic rollup chains. Rollups are innovative layer-two scaling solution protocols that provide increased security and efficiency compared to transacting on the Ethereum mainnet. Additionally, through optimistic rollup, the protocol will reduce transaction costs immensely.
EY Terms Polygon as Elaborate and Secure
The industry chains would offer businesses the comfort and security of a closed system. At the same time, the chains will retain a close alliance with the public Ethereum mainnet. Thus, it would make a future transition to public networks faster and more secure.
Global blockchain leader at EY, Paul Brody, said that engaging with Polygon enables EY teams to have a robust set of tools to scale customer transactions. Additionally, there will be a swift roadmap to integration on the public Ethereum mainnet.
He added that they discovered their shared priorities around open systems and networks. Furthermore, he said the Ethereum ecosystem would make collaboration in this area much more accessible. Sandeep Nailwal, Polygon’s co-founder, reaffirmed EY’s devotion to the public Ethereum ecosystem. Also, he noted that open standards help in evolving shared approaches.
Reducing the Network Load
For a while now, Ethereum has been struggling with congestion and high transaction fees on its network. The London hard fork tried to fix this but has so far shown mixed results in reducing costs.
Furthermore, investors have commended Scaling solutions since they can lighten the network load from influential names, like bitcoin. These solutions can achieve this due to their ability to process transactions on a sidechain. Arbitrum, an optimistic rollup solution, has seen significant growth recently. It rose from $24.5 million total value locked at the start of September to around $2.2 billion yesterday.
The demand for Ethereum scaling solutions has spiked recently amid the rising fees associated with transacting on the mainnet. The total value locked on the Polygon network has surged from about $1 billion to $8.6 billion since April. Polygon, today, has spread all significant crypto-associated spheres like DeFi, dApps, NFTs, and DAOs.