Watch: Polygon to 'overtake Ethereum in terms of economic activity,' claims co-founder | The Crypto Mile
Polygon is set to "overtake Ethereum in terms of economic activity", claimed co-founder Mihailo Bjelic, after the layer two blockchain announced its zkEVM upgrade earlier this week.
Polygon, which issues the matic (MATIC-USD) cryptocurrency, said that zkEVM (Zero-Knowledge Ethereum Virtual Machine) technology will now be used on their blockchain, which is built on top of the underlying Ethereum mainnet (ETH-USD).
The Ethereum blockchain gets congested and users face high transaction fees whenever the network gets too busy and high volumes of transactions need to be processed in short periods of time. Ethereum is known for its security and level of decentralisation, but it becomes slow and costly when used at scale.
Polygon's upgrade seeks to allow for the processing of high volumes of transactions at speed and at a low cost, without sacrificing privacy and network security.
It could see a shift in transaction volume from Ethereum to the Polygon network.
On this week's episode of The Crypto Mile, Mihailo Bjelic, co-Founder of Polygon, told Yahoo Finance UK: "Polygon is going to overtake Ethereum in terms of economic activity.
"One of the previous implementations on Polygon already has higher transactional activity than Ethereum."
But he said there is no competition: "Ethereum and Polygon as its layer two blockchain have this symbiotic relationship, where Ethereum serves as the foundational security layer".
"The roadmap that Vitalik Buterin, as founder of Ethereum, communicated recently said that the intention of Ethereum is not to cause these end user transactions, but to become the security layer that will just verify activity from layer two blockchains, such as Polygon.
"So it is a mutually beneficial relationship where it has already been agreed that Polygon will be the one hosting this end user activity.",
He said the new upgrade was "the beginning of a new chapter for blockchain technology, fulfilling Ethereum’s original promise of becoming a true 'world computer' and creating a fairer, more egalitarian internet for all".
How far is Polygon from being adopted by business, enterprise, and industry?
Bjelic said the zkEVM upgrade was a critical step in seeing mass adoption of this web3 technology by the global technology, e-commerce, fashion, and entertainment industries.
A number of big corporations and enterprises have started using Polygon and that companies including Telefónica (TEF) have said that they will build applications using Polygon zkEVM, according to Bjelic.
"Reddit, which is one of the biggest and most popular social networks has introduced their Collectible Avatars Programme on Polygon," he said.
"And, it has been a huge success with millions of people being onboarded through that to Polygon and to web3 in a matter of weeks.
Read more: Crypto live prices
"We are seeing very clear signs of mainstream adoption with a number of big popular games now deploying their game assets on Polygon.
"So, from in multiple industries, such as the fashion and automotive industry, with brands liuke Dolce & Gabbana and Mercedes (MBG.DE), we are seeing them delpoy on Polygon and exploring multiple use-cases of the technology."
Polygon has committed $1bn (was £807.5m)and raised $450m to build zkEVM.
On Friday, Polygon's native cryptocurrency, matic, fell 2.7% to $1.08, according to data from Coinmarketcap.