- Ryan Wyatt is the CEO of Polygon Studios and a former YouTube game chief.
- Polygon is Layer 2 of Ethereum, allowing developers to build decentralized apps on that chain.
- Other Layer 2 scaling solutions include Arbitrum, LoopRing, xDai Chain, Optimism, and ImmutableX.
On YouTube, Ryan Wyatt was familiar with how users monetize their content: participating in the creator economy. He states that the jump to Ethereum’s CEO of Polygon, the developer of scaling solutions, is “eerie.”
“If you think about it, Web3 has a lot of similarities between the developer ecosystem and the creator economy, right?” Wyatt wants insiders to earn money from their work and build it on an innovative platform. Said by quoting.
Wyatt started the YouTube gaming industry and was previously Vice President of Programming for Major League Gaming.
Last year, a 35-year-old kid noticed that venture capital was flooding the gaming industry. In the past, funding was often provided by game publishers rather than major investment companies, Wyatt said.
“I’m starting to realize that people I really believe and really smart are raising money to start their own game studio, and what they were doing with that capital was blockchain. It was a base game, “he added. “That’s just starting to excite me.”
Large institutional players such as Andreessen Horowitz, Tiger Global and Sequoia have all invested in early space. According to blockchain research firm Dapp Radar, blockchain-based gaming funding reached $ 4 billion in 2022.
“This was a new way to monetize,” Wyatt said of the NFT integrated into the game, a non-fungible token. “The agreement between the user and the game developer is a license, and in most cases the item is not fluid.”
Owning tokenized assets on the chain enables new monetization strategies for both traditional game studios and players participating in the ecosystem, Wyatt said. Most commonly, players buy character skins. This is a market that generates about $ 40 billion in annual revenue, according to the trading platform DMarket.
With the advent of blockchain games, players now have true ownership of virtual products.
Cramps
Co-founder Justin Kang told insiders earlier.
“The only difference is that these companies themselves have relinquished control, and the reward is a stronger economy,” said the game-focused NFT Marketplace Fractal. Mr. Kan who started says.
For beginners, Layer 2 is a separate blockchain that extends Ethereum. Especially with Polygon, developers can build decentralized apps (DApps) on the chain. However, the protocol can be used to build games, create non-fungible tokens, and continues to expand its use cases.
In February, Polygon announced a $ 450 million funding round led by Sequoia Capital India. Other investors include Softbank, Tiger Global and Galaxy Interactive. The startup has previously partnered with NFT artists Beeple, OpenSea, Dolce & Gabbana and DraftKings.
“The most reputable companies in the world choose polygons after doing due diligence,” said Wyatt, citing a partnership with payment processor Stripe.
Layer 2 war
Wyatt claims that polygons are a single layer 2 built on Ethereum.
“Ethereum stays here, which will be an important layer 1 for the world,” he said. “Polygon is the best way to build on the network because there are various technical solutions that can build the experience you are looking for.”
Polygon’s technical solutions include
Proof of stake
Chains and super net chains. This gives developers more freedom to choose the type of app they want to build. Proof of stake improves energy efficiency and leads to slower transaction speeds. In March, Polygon announced that it would invest $ 100 million in a more customizable network.
Ethereum has lower transaction costs and is known for its gas charges compared to polygons. For example, Layer 1 is limited to about 13-17 transactions per second, but Polygon can run 7,000 in the same time frame.
Other Layer 2 scaling solutions include Arbitrum, LoopRing, xDai Chain, Optimism, and ImmutableX.
In the coming months, Ethereum will undergo a series of upgrades over a network called Eth2 or “The Merge”. This includes improving the energy efficiency of Ethereum. This is a general compliment for building on layer 2 like polygons.
Polygon’s native tokens, known as MATIC, have been brought along with the broader crypto market downturn. MATIC fell 30.34% last month and traded at $ 1.04 on Friday. Have an altcoin
Market capitalization
$ 8.2 billion is down 64.15% from a record $ 2.90.
