Aggregation layers, or AggLayers, are the future of scalable decentralized networks because they help users overcome the issue of blockchain fragmentation. With the aggregation layer, decentralized blockchain networks can share liquidity and users to create a unified ecosystem for cross-chain operations. Aggregation layers have two main functions: aggregate the ZK proofs of all the connected blockchains and ensure the safety of near-instant [atomic] cross-chain transactions.
Keep reading this article to learn more about Polygon AggLayer’s evolution, features, and advantages and to understand how it will power the future of decentralized finance (DeFi).
What is Polygon AggLayer?
As the name suggests, the AggLayer, powered by Polygon, borrows monolithic and modular approaches to scaling to provide interoperability between multiple chains. The polygon AggLayer has two main components:
- a common bridge
- a ZK-powered mechanism
Together, these two components power seamless safety and cross-chain interoperability.
Aggregated blockchain layers such as Polygon result from the constant evolution of blockchain networks. In the beginning, there were only monolithic blockchains. Monolithic blockchains had many limitations regarding scalability, security, and decentralization. The increasing infrastructure requirements increased the centralized nature of the blockchain. In addition, monolithic blockchains could not be customized.
Modular blockchains have emerged with solutions to these issues. Modular blockchain architecture would enable the coexistence of independent blockchains with utmost sovereignty. However, this multi-chain ecosystem led to inefficient bridging that compromised on sovereignty of individual blockchains.
The founding of aggregated layers solved the inherent issues of monolithic and modular blockchains. Aggregated layers were formed by combining the sovereignty and scalability of modular blockchain architectures and the liquidity and user experience of monolithic blockchain architectures.
Features of the Polygon AggLayer
The peculiar features of the existing Polygon Agglayer are given below.
- Native Tokens: All the cryptocurrency assets and smart contracts found on the polygon AggLayer are native tokens. These native tokens ensure a better experience for the users than other wrapped tokens.
- Unified liquidity: All the assets on the Polygon Agglayer enjoy shared liquidity. This will allow developers to navigate any bootstrapping issues. Safety is ensured in this setup.
- Sovereignty: The individual chains can still enjoy utmost sovereignty even if they are linked to each other through the AggLayer.
The Polygon AggLayer is expected to integrate the following features in the future.
- Chain Aggregation: Chain aggregation enables direct cross-chain interoperability without having to set up each layer to Ethereum.
- Unified Liquidity: Fast, asynchronous cross-chain transactions can be made using the unified liquidity feature. This enables shared Total Value Locked (TVL) for all the concerned chains operating with the aggregation layer.
- Sgared Sequencing: Aggregated blockchains will be able to coordinate with shared sequencers to execute synchronous cross-chain transactions at times of near-instant finality.
- Chain State Accounting: Chain state accounting is done using the pessimistic proof that secures all associated chains and ensures that no one chain withdraws more than their deposits.
- Low Cost: Aggregation layer blockchains are less costly because there are no intermediaries present who extract any kind of fees.
Advantages of Polygon AggLayer
As the Polygon AggLayer uses ZK proofs to facilitate seamless transactions and scalability, near-instant, atomic transactions are made possible between different blockchains without compromising on efficiency or user experience.
Polygon AggLayer ensures the sovereignty of transactions to all the layer 1 and layer 2 networks connected. Developers and users can choose from a large pool of aggregated networks. The decentralized applications (dApp) developers can reach many users at a time through the Polygon AggLayer. Cross-chain interaction between dApps on different chains is now possible. For the end users, Polygon AggLayer provides an environment that doesn’t compromise on user experience.
The Bottom Line: What Would the Future Look Like for the Polygon AggLayer?
Aggregation layer blockchains are going to be the future of decentralized finance. With more users expected to flock into the DeFi sector in the coming years, aggregation layers will take care of the issues of scalability and security.
The Polygon Lab is busy inventing innovations for its AggLayer such as ensuring the speed of finality. They are also planning to innovate in all spheres of the AggLayer’s development such as proof aggregation, optimistic confirmations, and atomic cross-chain transactions.
