As Ethereum gas prices rise, the chain that inspired Web3 is becoming gentrified, with high transaction costs pushing less wealthy users onto competing blockchains or scaling solutions.
Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
L2s are the path to mass adoption says QuickSwap founder Sameep Singhania
Cointelegraph Magazine | Elias Ahonen | Jan 12, 202
As Ethereum gas prices rise, the chain that inspired Web3 is becoming gentrified, with high transaction costs pushing less wealthy users onto competing blockchains or scaling solutions.
This means that many use cases are becoming unfeasible in the proverbial layer-one downtown, and suburban neighborhoods are being developed to allow for a cost-effective layer-two blockchain experience.
Since getting acquainted with Polygon around the time of its launch in late 2019, Sameep Singhania has been an avid supporter of projects built on the protocol. In 2021, he created QuickSwap, a decentralized exchange (DEX) serving the needs of the budding Polygon ecosystem.
A DEX for Polygon
After working on perhaps dozens of projects on Polygon from 2019 onward, Singhania “realized that to grow the Polygon ecosystem, we need a DEX.”
See: Single largest Ethereum contract worth $33.5 billion ‘trapped’
This was because while “99% of blockchain projects have a token,” listings on popular exchanges are not easy to arrange, and many users are not willing to create an account at an obscure exchange just to trade a particular token that is not listed elsewhere. A DEX can function as the central market square of a blockchain network, giving its users access to everything they need without having to venture to another chain.
Polygon — previously called Matic Network, with MATIC remaining its ticker — is a layer-two blockchain. That means it’s a blockchain built on top of an existing chain. Whereas Lighting is an example of a layer-two, or L2, built on Bitcoin, Polygon is built upon Ethereum.
QuickSwap is Polygon’s primary DEX and functions as a heart of the network.
“Polygon is there to scale Ethereum,” Singhania says, which has its pros and cons. He further explains that while “Ethereum is the most secure solution out there,” it comes at the cost of high gas fees and relatively slow transaction times.
See: tbDEX: Square Releases White Paper Detailing Protocol for a Decentralized Bitcoin Exchange
Onboarding the next generation
Now that Polygon is a low-cost option to L1 and has a reliable DEX, Singhania believes that the next step in scaling the layer is to improve the user experience in order to make it user-friendly for millions of people who are new to cryptocurrency. As QuickSwap is a central point of the Polygon ecosystem, much of the responsibility falls to his shoulders.
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