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Lithium is integrating fully on Polygon

Polygon x Lithium

A collaboration to unlock more founding teams, and move us to further decentralisation

If you had to sum up the purpose of blockchain in one, pithy sentence, you would say it exists to ‘maintain integrity in a decentralised system’.

The value of blockchain does not come through hash functions, private keys, quadratic voting, or any of the other advanced computing techniques it can employ. Its value comes from the fact it can help us move from a world in which centralised organisations control the flow of information, and resources, into one in which the idea of a central authority is completely dissipated.

Of course, a system is not centralised or decentralised from a binary point of view. Rather, gradually over time, a protocol can become more and more decentralised. Initially, you probably need some level of centralisation to set up processes, systems and best practices, until you gradually relinquish control to the masses.

But why am I talking about the gradations of decentralisation in an article announcing a collaboration with Polygon? Well, to answer that, we have to take a quick look at Binance Smart Chain (BSC), the first protocol Lithium chose to work with.

BSC was one of the first real competitors to Ethereum, it achieved this by offering substantially lower gas fees.

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The Blockchain Dilemma, pick you two, you can’t have three.

The cost of these lower gas fees (improvements in scalability), while maintaining security, lowered levels of decentralisation. BSC is not really a decentralised protocol. For starters, it was created by one of the biggest centralised exchanges in the game. You can also get a taste of its level of decentralisation by looking at its validator nodes (only around 27, v Eth’s 1000’s). Crucially, not everyone can run a validator node on BSC, you must be selected by Binance.

At Lithium, we don’t think decentralisation is the answer for everything (and definitely not for deciding investment decisions!), but we do think, in the long-term, largely decentralised protocols will be more popular, as they escape the problems blockchain are trying to solve.

But how do you get the benefits of a decentralised protocol such as Ethereum, while maintaining low gas fees, which have rendered Ethereum unusable for so many retail investors.

What Is Polygon?

You’ve probably heard of Polygon, and if you haven’t, there’s some really great content on the protocol out there, so I’ll keep this brief.

Effectively, Polygon is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. Polygon seeks to solve the scalability issues through a host of clever technologies.

The easiest way to think about how Polygon achieves this is to imagine a court of law. In this case, we’ll imagine Polygon is operating as a layer 2 on top of Ethereum, although it is can operate on top of any Ethereum-compatible network. In this case, most of the consensus that is required to make a blockchain function is decided on the Polygon layer. It is only when there is certain disagreements in consensus, that this decision is passed down to the Ethereum layer 1 to decide.

This framework means that the throughput (transactions per second) on Polygon is much higher than Ethereum, lowering gas fees.

We are bullish on Polygon, because it leverages the strong network effects and decentralisation Ethereum has built while delivering a protocol that is much more usable.

How The Collaboration Will Work

We will now take a look at how our collaboration with Polygon will work.

IDOs

The most obvious benefit to Lithium investors is that they will soon be able to access IDOs on the Polygon network. This is incredibly exciting as it unlocks a tonne of talented founding teams to the Lithium ecosystem.

Lithium holders will stake their $EBSC token on the BSC network, as usual, but on entering the Launchpad, they will be able to see both pools for BSC and Polygon projects. Polygon projects will raise cash through the native $MATIC token.

Grant

We will do a stand-alone post to specify the details of the Polygon grant. At a high level Polygon will be providing Lithium with a cash payment from their Developer Support Program to help us quickly unlock Polygon on our Launchpad, Polygon will also assist with technical support.

Deal Flow

Lithium will assist Polygon with deal-flow, helping them identify exceptional founding teams for investment, launch or both.

Exposure of Users

Research indicates that users are, at least for now, protocol sticky. This means BSC users generally won’t easily migrate to Polygon. This is a shame, as it leaves out a tonne of potential value to investors. This stickiness is one of the reasons we have struggled with the decision about whether to branch onto another chain.

Ultimately, we made the decision because we think this protocol stickiness is just a phase, and it’s inevitable that in the future users will be far more chain agnostic. We also feel, with the level of engagement we have with our community, we can guide our investors to adopt the Polygon protocol, through education and exposure to value via IDOs.

{insert name} of Polygon is excited about the Lithium x Polygon integration  ‘Lithium Ventures have a track record of identifying the most talented founding teams in the early-stage crypto space, and promoting them through their wildly successful IDOs. We are really excited to be integrating with Lithium so they can continue adding huge value to nascent teams on the Polygon protocol.

Lithium is also looking forward to the collaboration, chief product officer, Tom Littler says ‘I’ve been watching Polygon keenly for the last 6 months and their progress as a full-stack scaling solution is unrivalled. I think our community will quickly adopt the Polygon protocol when they see the quality of projects and founders working in this space, and the opportunity for financial upside being involved in Lithium IDOs on the Polygon network’

About Lithium

Lithium

Lithium is a cross-chain incubator, launchpad and seed fund for early-stage crypto startups. With a number of successful IDOs under their belt, Lithium has a reputation for adding huge value to founding teams, helping with product development, community building and marketing.

If you are a founder you can apply for Incubation here.

If you are an investor looking to get involved in the most exciting IDOs you can find our more on our site, or our Telegram

About Polygon

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Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 500+ applications hosted, ~600M total transactions processed, ~60M unique user addresses, and $5B+ in assets secured.

If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.

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About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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