Enterprise Ethereum platform Kaleido is teaming up with Polygon, the popular scaling service, to bring the convergence of public and private blockchains a step closer.
Unveiled on Thursday at Ethereum’s annual community gathering in Paris, EthCC, Polygon Edge is intended to offer businesses a user-friendly, cloud-based system connected to the Ethereum mainnet. It will offer companies a range of high to zero gas fee models, depending on the transaction requirements.
Historically, blue chip companies have looked to create private blockchains to keep control of their data and stay within existing regulations. However, these firms are now being drawn to the transparency of public blockchains, driven by the growing interest in Web3, decentralized finance (DeFi) and non-fungible tokens (NFT).
“We’ve been saying for years the enterprise blockchain segment, that popped up in 2015, would come together with these public ecosystems,” Kaleido founder Steve Cerveny said in an interview. “Now we are seeing enterprise NFTs that are references to digital twins and real world things and all kinds of utility being created and happening now in 2022.”
Polygon is developing a whole range of clever overlay and side channel systems to make the Ethereum blockchain, with its congestion and high gas costs, fast and affordable. But an additional scaling layer is required, which Cerveny calls “app-chains.” This is a kind of dedicated blockchain for an application, he said, that comes with additional choices out of the box when it comes to intuitively bridging Ethereum.
For example, if an enterprise customer wants to set up a stablecoin, that might require high gas fees on the Ethereum mainnet to some extent, Cerveny said. A second tier of transactions could use the Polygon mainnet and would incur a smaller fee, he noted. Then there are a large percentage of use cases and transaction loads that need to be zero gas fees, he added.
“We are bringing along a framework that offers the power to choose. It’s as simple as a different flag on the API to choose a super-special transaction, or something very high volume with a different mix of security and decentralization,” Cerveny said. “Making it that simple to build on really does unlock a lot more zeros in the scaling equation.”
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.