🟪 PolyPulse #27: Polygon ID, a decentralized identity solution goes live.
Also, read about Polygon going Carbon Neutral.
Welcome to Poly Pulse - your guide to staying up-to-date on the latest trends in the Polygon DeFi ecosystem.
This newsletter breaks down top stories, developments, updates, and trends from the third week of June 2022.
Weekly Active Users have stabilized on-chain, settling in the 740K-775K range. The top three TVL gainers in the past week were:
Uniswap ($120 Mn, +64%),
Gains network ($9.3 Mn, +20%), and
Sphere Finance ($3.5 Mn, +15556%)
Quickswap remains the most engaging DeFi dApp on Polygon with approximately 300k total weekly transactions and 46k unique users.
👉 Also Read:
What is Polygon ID?
Polygon ID is a self-sovereign identity solution powered by Zero-Knowledge cryptography that brings the next wave of privacy innovation to the Web3 space. So, what problem(s) does Polygon ID solve?
Currently, we are forced to trade data access to the most basic services on the web. Polygon ID enables users to own their data and keep information private by responding to a specific verification versus sharing the actual data.
Polygon ID puts users in complete control of their data. With ID, you don’t need to disclose any info about yourself. The platforms you use over the Web can check against aspects of your identity without seeing or possessing the actual personal data itself. For instance, when you check in to a hotel, you need to give a government-issued form of ID to prove who you are. The hotel keeps this personal information on record and it can be used later without you knowing. With Polygon ID, such personal information is stored on-chain, so that only the original owner can access them. In this case, for verification purposes, the hotel will need to send a request in the form of a question to interact with this data and get a Yes/No response to his/her query.
Polygon ID also creates the possibility for fully-private & verifiable reputation building. Anyone adding value to a particular user or corporation can be rewarded with claims in exchange for their efforts. Those claims can then serve as a basis for financial incentives and decision-making powers within their ecosystem. To read more, please check here.
The Polygon ID product suite is comprised of the following:
Polygon ID native app: a set of open-source user and developer kits to integrate or whitelabel for custom applications.
Polygon ID Platform: an open, public platform developers and organizations can use to define and manage the trust lifecycle of their applications and other requirements, such as Zero-Knowledge Proofs (ZKPs), sources of trust, etc.
Polygon ID Connect: public service platform to integrate access across the native app and applications.
This week the Polygon ID did its first collaboration with the Polygon DAO. Let’s take a deeper look:
In the real world, no one questions the value of voter anonymity. Yet blockchain-based voting systems default to tying voting behavior to public identifiers. This is because there is no way to allow for private voting while guaranteeing that each user gets verifiably correct voting power. Similarly, there is no way to qualify for participation in online governance processes based on specific user attributes without directly tying voting activity to a user’s public wallets.
All of that changes with Polygon DAO’s integration with Polygon ID.
DAOs can now issue ecosystem-wide attestations about their members in a fully private and permissionless way. Consequently, DAOs can verify attestations about their users without the need to actually collect any private information, trusting solely the ZK proof, and the source of trust (the issuer). Those attestations can then be used within governance to assist in decision making, or any other system like incentive distribution, e.g., targeted airdrops.
Polygon DAO aims to avoid the pitfalls of simplistic token-driven governance structures that naively confuse an actor’s (interested party) investment size for merit. That said, use of Zero-Knowledge solutions in a DAO has never been done before. This allows Polygon DAO members to access an entire range of previously unexplored governance frameworks in Web3.
Polygon has become a part of the Singapore FinTech Association, which helps them collaborate with the Southeast Asian market and boost Web3 adoption.
Polygon’s DeFi ecosystem is still thriving in the bear market against its competitors.
The latest alpha podcast with Bartek from MakerDAO is live on “Polygon Alpha Podcast.”
Polygon goes 100% carbon neutral.
Quickswap proposes to launch a Concentrated Liquidity Model and is open for governance discussions.
Is the Brain drain from countries stringent around crypto laws real?
Web3 has been rolling eyeballs everywhere. FAANG jobs were considered the dream job for many at one point, but the Web3 world is becoming the new flex. A lot of talent is moving into the Web3 space and leaving their Web2 jobs even though they provide more comfort and job security. However, regulators around the world have not been completely transparent and open about regulations around the Web3 space.
This is forcing many developers and those actively involved in the space to move to countries with better and friendlier laws. For example, effective the 1st of July 2022, the Indian government has levied a 1% Tax at source (TDS) on the transfer of crypto and any digital asset while transferring crypto through a cryptocurrency exchange. Such laws create bottlenecks for the Web3 ecosystem as it is very difficult to deduct TDS if one transfers BTC since it's challenging to go ahead and deduct 1% on BTC in fiat. Such laws have resulted in around a 50% reduction of the crypto exchange volumes in the country. As a result, many people from India have been moving to other nations like Dubai and Singapore which have more friendly rules and less taxes.
We need to understand that the Brain Drain is a real threat, especially in developing economies where the right laws can bring massive adoption and growth to the economy.
- Aishwary Gupta (Strategy/Marketing Lead at Polygon DeFi & Community Lead at DeFi Pulse).
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