Tier 2 Scaling Solution Polygon has raised $ 450 million in a round of funding backed by some of the largest blockchain investment funds, further evidence that large investors want to support the future of Web3 development.
The investment round was led by Sequoia Capital India with over 40 venture capital funds, including SoftBank Vision Fund 2, Galaxy Digital, Tiger Global and Republic Capital. Billionaire investor Kevin O’Leary also participated in the increase.
Polygon will use the funding to expand its expansion solutions, which include Polygon PoS, Polygon Edge and Polygon Avail, and to support mass adoption of Web3 applications. The team will also continue to invest in zero-knowledge technologies after committing more than $ 1 billion to such initiatives in November 2021.
Polygon, which provides the infrastructure and scaling support for Ethereum, has attracted a lot of interest over the past year as the explosive growth of decentralized finance and non-perishable tokens raised concerns about the bandwidth of the Ethereum network. In an interview with Cointelegraph in December 2021, Polygon founder Sandeep Nilewal said that the upcoming Ethereum upgrade is unlikely to provide enough scalability to meet demand. This is to explain:
“Even if 2.0 comes here, it will not provide enough scalability. [In 2022], the Proof of Stake update will keep everything intact; since Ethereum currently has 13 transactions per second (TPS), it will probably reach 20 TPS [after PoS ], but no more. So it adds nothing to scalability. ”
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On the Web3 front, Polygon is very active in expanding its developer network to support the next generation of decentralized applications. As Cointelegraph reported, Polygon has partnered with Seven Seven Six, a venture capital firm led by Reddit co-founder Alexis Ohanian, to launch a new $ 200 million Web3 fund.
In January, Silicon Valley venture capitalist Andreessen Horowitz announced that it would provide an additional $ 1 billion to Web3 startups.