With the price of Ethereum gas rising, the chain that inspired Web3 is becoming more sophisticated, with higher transaction costs driving less affluent users to competing blockchains or scaling solutions.
This means that many use cases are rendered useless in the first layer of the city center, and suburban neighborhoods are being developed to allow affordable second layer blockchain experiences.
Since Polygon was recognized around the time of its launch in late 2019, Samep Singhania has been a strong supporter of protocol-based projects. In 2021, he created QuickSwap, a decentralized exchange (DEX) that serves the needs of the nascent Polygon ecosystem.
Singhania left a promising career as a software developer in 2017 to work as a freelance developer, only to find himself writing code for a range of blockchain projects in DeFi and the Layer 2 sector. Among the many projects he worked on, he spent 18 months with e-commerce site OpenBazaar on the blockchain, and worked as the lead developer of the DeFi exchange ParaSwap.
Polygon is a layer two solution built on Ethereum that offers users lower fees when transacting across the chain. QuickSwap is Polygon’s primary DEX and serves as the heart of the network.
After working on possibly dozens of projects on Polygon from 2019 onwards, “Singhania realized that to grow the Polygon ecosystem, we needed DEX.”
This is because while “99% of blockchain projects have a token,” listings on popular exchanges are not easy to rank, and many users don’t want to set up an account on an obscure exchange just to trade a specific token that isn’t listed elsewhere. DEX can act as the central market square of the blockchain network, allowing its users to access everything they need without having to venture into another chain.
Singhania remembers being encouraged to create DEX by Polygon’s co-founder Sandeep Nailwal, who put him in touch with Roc Zacharias, a marketer with Lunar Digital Assets. “This is how we built a team — we had developers, we had a marketing team, the perfect mix, and we launched the app,” he explains.
Polygon – formerly called the Matic Network, with MATIC remaining on its strip – is a Layer 2 blockchain. This means that it is a blockchain built on top of an existing chain. While Lighting is an example of Layer Two, or L2, built on Bitcoin, Polygon is built on Ethereum. As a result, Polygon-based tokens can be sent to Ethereum addresses, which users can redeem simply by switching to the Polygon network on a DApp such as MetaMask.
The often mentioned advantage of second language solutions is that they are smarter than their giant parents, allowing for faster and cheaper transactions. with bitcoin Transactions At a cost of more than $10 and taking about 10 minutes for the first out of six confirmations, it is clear that dealing on the parent chain is not practical for day-to-day transactions in El Salvador, for example, where workers can earn as little as $100 per month. Instead, Salvadorans use Bitcoin Lighting, whose transactions cost less than 1 satoshi.
Transaction costs on the Ethereum network are much higher, making it “unusable for small users” who are efficient its price From using DeFi solutions or decentralized exchanges like Uniswap. In January 2021, “a normal Ethereum transaction on Uniswap cost about $100,” Singhania recalls.
“If I’m a regular user and want to do a small transaction, I can’t do that on Ethereum – the average transaction size on Uniswap is somewhere around $50,000.”
“Polygon is there to scale Ethereum,” says Singhania, which has its pros and cons. He further explains that while “Ethereum is the safest solution,” it comes at the cost of high gas fees and relatively slow transaction times.
This is completely undesirable for the economy – there are smaller denominations of currencies because not everything can be done with $100 bills. L2s are the solution to allow micro-transactions on existing networks such as Bitcoin and Ethereum. On Polygon, users can exchange Ethereum-based tokens and NFTs and interact with smart contracts cheaply.
– QuickSwap (QuickswapDEX) June 15, 2021
The urgency for L2s is relatively new, as transaction costs have risen dramatically in the past two years along with the blockchain user base. In QuickSwap, transactions between more than 23,000 available pairs cost just a few cents. “You can basically use QuickSwap to trade any ERC-20 token that has liquidity and is on the Polygon network,” says Singhania. Fees are normally paid at MATIC.
Considering the savings, transferring digital assets from Ethereum to Polygon appears to be an obvious solution for many users. However, some activities, such as the trading of six-figure NFTs, remain critically far from the Polygonian suburb. Similarly, Singhania acknowledges that those making multi-million dollar deals have few to gain from Polygon.
There are two primary ways to transfer assets to Polygon, according to Singhania: withdrawals from the exchange and bridges. “A lot of big exchanges like Binance support deposits and withdrawals on the Polygon network,” which means that it is possible to avoid the Ethereum network altogether. For assets that are already on Ethereum instead of a central exchange, it can be bridge, which is an efficient transfer between the blockchain.
“L1 and L2 apps each have their own pros and cons and each have their own use cases – now it’s up to the user to choose the platform that best suits their needs”
Learn the ropes
Singhania, 31, grew up in the Indian capital, New Delhi. He had an early passion for programming since high school, and described the programming process as “like magic happens”, where “cool things” can be created with just a few lines of code. He pursued his passion in 2008 to the JSS Academy of Technical Education, on the outskirts of the capital, where he completed a bachelor’s degree in computer science and served as an ambassador for IBM on campus.
Graduating in 2013, he began his career in software testing and automation at Dell, but soon realized he wanted to “focus more on development” rather than remaining as a software tester, a role with fewer opportunities for creative input, for the rest of his work. Professional life. He made the switch to a software developer in 2015 at Drishti-soft Solutions, where he worked on customer service software and organized web development courses.
Not yet settled in the role and in search of “something I don’t get bored of”, Singhania moved to software freelancing in 2017. “When you work as a freelancer, you get to meet a lot of people and learn about a lot of new industries and fields,” he recalls, He indicated that he was finally interested in his work. One of these new industries was blockchain, which he had previously heard about while working as a developer.
“I came across blockchain and Bitcoin stuff again while researching a project, so I decided to give it more time and do some more research – to find out ‘What is this Bitcoin? What is this blockchain?’”
By mid-2018, Singhania was a full-time blockchain engineer for a number of projects, including Akila Labs, Bitgrit, and Toptal, where he developed ERC-20 tokens and smart contracts for things like airdrops, token maturity, and mass selling. Among these are the 18 months he spent working with the decentralized startup Open Bazaar, “which was trying to create something very similar to Amazon – but on the blockchain” using the peer-to-peer interplanetary file system (IPFS), Singhania recalls excitedly.
When DeFi just started in 2018, Singhania served as lead developer and first employee of ParaSwap, which is an aggregation DApp that combines several DEXs so that users can seamlessly trade cryptocurrency pairs that do not exist together on any exchange. All of this trading is done through Singhania smart contracts, which are “handling millions of dollars every day,” he says proudly, adding that the platform has seen a trading volume of $3.3 billion in the past month.
“This project allowed me to get into DeFi — it basically introduced me to everything out there like Uniswap, Bancor, Kyber Network, because to build ParaSwap we needed to learn all about DeFi.”
With DeFi under his belt, Singhania ran into Layer 2 blockchain solutions while working on a dice game for one of his clients, a blockchain casino.
He quickly realized that “it was too expensive to do this on Ethereum” – even though the 2019 gas fee was a fraction of what it is today. Something new was needed, and Singhania “began to explore second-tier solutions,” he recounts. He first built his dice on the now defunct first layer blame network Shutting down shortly thereafter, Singhania discovered the Matic network, which in late 2019 was “too new and its main network had not yet launched.” Working with the Matic Network team, now called Polygon, Singhania turned dice, becoming familiar with Polygon in the process.
Ethereum dice games are not the first to experience scaling issues. Eric Voorhees satoshiAnd For example, it was launched in 2012 and quickly took over half of all bitcoin transactions. With the increase in transaction prices, making small on-chain bets on the main bitcoin layer has since become impractical.
We offer them a $1 million liquidity mining incentive to boost the platform’s liquidity
🌐: https://t.co/Z3fb8BOCmw pic.twitter.com/gHN9ZL89U6
– Polygon | $matec 💜 (@0xPolygon) September 30, 2021
Qualifying the next generation
Now that Polygon is a low-cost option for L1 and has a reliable DEX, Singhania believes that the next step in scaling the tier is to improve the user experience to make it easy to use for the millions of people who are new to cryptocurrency. Since QuickSwap is a central point in the Polygon ecosystem, a lot of the responsibility rests with it.
“The way things are designed right now, it’s not for beginners – it’s for a well-trained crypto user.”
In Singhania’s view, MATIC price can be expected to follow the adoption of the Polygon layer. If the team continues to implement, “it’s just a matter of time” as to when prices may start to rise steadily. One thing is clear: Singhania is no longer bored with his work and “doesn’t do any kind of independent work because I don’t have the time”.