Polygon Labs Proposes Flagship Sidechain Upgrade

Check out the biggest breaking crypto market updates for today: 

Polygon Labs Proposes Upgrade Of Flagship Sidechain To ‘zkEVM Validium’

Polygon co-founder Mihailo Bjelic has reportedly proposed upgrading the flagship Polygon Proof-of-Stake (PoS) sidechain to a “zkEVM validium” version. 

If implemented, the new version of the chain will rely on zero-knowledge proofs to increase security. Bejelic states that this would bring increased security and make the framework of the blockchain more “future-proof.” 

The upgrade aims to align the current Polygon PoS chain with the vision for Polygon 2.0, a future version of Polygon that leverages a specific type of zero-knowledge scaling technology called validium. 

The proposal intends to utilize Polygon’s in-house zkEVM to enhance the sidechain’s security and performance while preserving its low fees. 

This would be separate from the team’s existing zkEVM, which was rolled out in March 2023. 

Sandeep Nailwal, co-founder of Polygon, clarified the distinction between the proposed and existing zkEVM technologies. He stated, 

“This is an upgrade of the Polygon PoS chain to a zkEVM ‘Validium.’ That means the data availability [for apps] will be with the validators, whereas the existing zkEVM rollup has data availability directly on Ethereum.” 

Polygon Labs indicated that it envisions both the upgraded Polygon PoS and the existing zkEVM coexisting within the Polygon ecosystem. 

If approved, the upgrade could be implemented on the mainnet by the end of 2024. 

If accepted by the community, the upgrade will mark the first time that an existing chain has added ZK proofs and transitioned to become an L2. Polygon is currently one of the most widely used blockchains in the crypto sector in terms of daily transactions and holds over $2 billion in on-chain assets.

Gemini Plans Asia-Pacific Expansion As Part Of ‘Next Wave Of Growth For Crypto’

In a blog post dated June 19, US-based crypto exchange Gemini announced its plans to expand into the Asia-Pacific (APAC) region. 

Gemini stated that it plans to increase the number of staff at the firm’s Singapore office to more than 100 employees and also hinted at “larger” plans for expanding into the region in the next 12 months. 

It also stated that it is establishing an engineering division in India. 

“We believe that APAC will be a great driver of the next wave of growth for crypto and Gemini,” said the exchange in a tweet. 

The expansion plans come amid Gemini facing a lawsuit filed in January by the U.S. Securities and Exchange Commission (SEC) over “Gemini Earn.” 

The exchange’s product – offered in partnership with Genesis – allowed users to lend crypto assets to Genesis, which the SEC alleges violated U.S. securities laws. 

Gemini seemed to be exploring different markets amid the crackdown on many crypto firms in the United States. 

In April, the exchange took the first steps to become a restricted dealer registered with Canada’s Ontario Securities Commission, one of the country’s major financial regulators. 

In May, the Winklevoss twins (the founders of Gemini) announced they had chosen Ireland as a base to grow the firm’s services across Europe.

Deutsche Bank Applies For Digital Asset License Amid Growth Push

A logo hangs on the temporary headquarters of Deutsche Bank AG in Frankfurt, Germany, on Wednesday, July 22, 2009. Deutsche Bank AG releases its earnings next week. Photographer: Alex Kraus/Bloomberg

Deutsche Bank AG has reportedly applied to Germany’s financial regulator for a regulatory license to operate a custody service for digital assets such as cryptocurrencies. 

The move is part of a wider strategy to increase fee income at Deutsche Bank’s corporate bank and also mirrors similar digital asset-focused efforts at its investment arm, DWS Group. 

Speaking at a conference earlier this week, Deutsche Bank’s global head of corporate bank David Lynne said that the bank is “building out our digital assets and custody business,” and confirmed that it had put in an application to BaFin for a digital asset license. 

The German bank has reportedly been working on a crypto asset custody platform since late 2020, with a view to establishing a “minimum viable product in 2021 while exploring global client interest for a pilot initiative.” 

With assets worth $1.3 trillion, per S&P Global data of largest banks in 2023, Deutsche Bank is the largest bank in Germany in terms of total assets, and Europe’s ninth largest bank. 

Its enthusiasm for digital asset custody marks somethin of an about-face for Deutsche Bank, which in a 2021 research not described Bitcoin’s value as being “entirely based on wishful thinking.”

Luke Baldwin

0 thoughts on “Polygon Labs Proposes Flagship Sidechain Upgrade”

Leave a Comment

Your email address will not be published. Required fields are marked *