EQONEX welcomed MATIC into its community of listed tokens earlier this month, giving EQONEX users the opportunity to invest in this exciting new asset class. To celebrate the announcement, EQONEX held a webinar to uncover Polygon's journey and its plans for the future. Hosted by Justin d'Anethan, Sales Manager at EQONEX, the webinar featured Jaynti Kanani, the CEO of Polygon, and Kelvin Ting, Head of Blockchain Strategy at EQONEX.
Here are the key talking points from the riveting symposium.
Jaynti revealed that initial work on Polygon started after he encountered roadblocks in a few side projects. As a developer, he loved to tinker around on new things and build apps on the side. In 2017, while working as Lead Data Scientist for Indian startup Housing.com, Jaynti tried his hand on building a fantasy betting site. He soon discovered that Indian financial regulations prevented him from incorporating a payments platform without a registered legal entity and verified bank account.
Crypto piqued his interest as a potential solution to his problem. As he dug into the ecosystem further, he discovered that the decentralized nature of crypto had potential far beyond what he had imagined. Cue to the 2017 crypto boom, and Jaynti was happy to quit his job to explore building crypto tools full-time. Polygon was conceptualized after the crypto kitties hype jammed the Ethereum blockchain, but Jaynti was convinced that scalability issues needed to be addressed.
Kelvin added that his story had several parallels with Jaynti's. While he did not take the entrepreneurial route, it was the challenge of integrating Bitcoin into an options trading platform that helped him become a subject-matter expert in the payments space. Later, after joining Crypto.com, Kelvin worked on similar projects tackling scalability issues which further entrenched him in the field.
At the moment, the Ethereum blockchain can only handle 13 transactions per second. That's very low, especially when you consider traditional payment services like Visa can scale up to 65,000 transactions per second. Ethereum 2.0 will solve some of these issues, but both Jaynti and Kelvin believe there is plenty of opportunities to continue to solve scalability issues.
"If there's a sudden spike in transactions, you'll see that the fees on the Ethereum network [...] will go up maybe about 5, 10 times. This basically makes it very unfeasible," said Kelvin. "If your technology is unable to support large amounts of transactions at any given time, it becomes very hard to adopt. So I think the Matic network is a very good example of something that can help with this."
Jaynti agreed. "Let's say if you're new to crypto right and paying $100 as gas fees. That's not a good way to onboard any new users," he explained. "With Polygon, we are solving two kinds of issues: Scalability, as you can send multiple transactions at the same time. And lower transaction fees."
The listing process at EQONEX is comprehensive, as tokens must meet rigid criteria before being accepted into the platform. The team at EQONEX evaluates hundreds of tokens at any given point, but MATIC was a great fit for EQONEX, explained Kelvin.
To begin with, the listing team at EQONEX looks at the real-world utility of the token and whether it solves an actual problem. The scalability of the Ethereum blockchain is certainly an issue faced by the crypto community across the world, so MATIC fits that definition. But other than that, it's equally important for the token to display trust, governance, and transparency. Things like whether the source code of the smart contract is audited, the GitHub repository of the project and whether code upgrades are being made, and the team's strength behind the token are all factors that weigh into EQONEX's decision of listing.
"The protocol of the team has gotten a lot of community interactions, and it's a very well-rounded perspective of any project. MATIC essentially topped our list because it ticks all the boxes," said Kelvin.
Polygon has come a long way since work started on the project in 2017, and Jaynti reflected on a few key events that helped them get to where they are today.
The initial investment by Coinbase and Binance was a big shot in the arm for the fledgling company, especially for a Blockchain startup from India. The country has traditionally been hostile to Blockchain companies, banning Bitcoin and other cryptocurrencies in 2018 and sending out mixed signals about its future intentions to the market.
"Having EQONEX on board with MATIC is a huge vote of confidence for the project. It means we have enough liquidity in the market [...] it is a big thing for us and for the MATIC community," said Jaynti.
"We are also expanding to optimistic roll up, secure roll-ups, and app-specific side chains using the Polygon SDK. Every day, we onboard three to five applications on Polygon. That's huge and unprecedented. You cannot see this kind of traction anywhere right now," added Jaynti.
But success is never a linear path and entails multiple sacrifices. Jaynti agreed that the team had its fair share of ups and downs. When you're just starting and have no brand recognition, it's hard to hire good people and use them to build something great. Jaynti's workaround was to hire new STEM grads and teach them about the Blockchain.
"Building a good project or startup. It takes a lot of time and your energy," he said.
Are you interested in watching the entire conversation to learn more about Ethereum scalability, MATIC price predictions, and the possibility of a multi-chain future? Check it out here.
Global Head of Sales Trading Matt Blom went live with The Birb Nest to discuss the EQONEX vision for crypto, and the power and potential of its exchange token EQO. Watch the AMA, where he discusses our institutional grade technology, EQO, the upcoming EQO Dollars airdrop, and more!
While today is a day of celebration, we’d also like to take the opportunity to reflect on some of our successes over the last year.