Polygon 2.0: Canto to Launch Polygon-Powered RWA Focused Chain

Cosmos-based Canto is the latest to express an interest in joining Polygon’s multichain ecosystem.

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  • The Polygon 2.0 roadmap continues to attract big projects.
  • Canto has revealed interest in joining Polygon’s planned network of ZK-powered Layer-2 chains.
  • Polygon Labs Ventures co-founder Sachi Kamiya suggests that more adoption is on the horizon.

In June 2023, Polygon Labs unveiled the 2.0 roadmap with a vision to transform the Polygon ecosystem into a network of zero-knowledge-powered Ethereum Layer-2 chains with seamless interoperability to offer infinite scalability and unified liquidity. 

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As the network races ahead, recently unveiling Phase 0 of the Polygon 2.0 implementation plan, the appeal of this multichain vision is attracting big-name projects. The latest to indicate interest in joining the fold is Canto, a hyped Cosmos-based Layer-1 chain that hopes to take advantage of the deep liquidity of the Ethereum ecosystem.

Canto Mulls Pivot to Polygon-Powered Ethereum Layer-2

In a blog post on Monday, September 18, Polygon Labs disclosed that Canto is set to join the Polygon ecosystem by transitioning to a zero knowledge-powered Ethereum Layer-2 chain built with Polygon’s Chain Development Kit (CDK), pending an agreement by Canto contributors known as Canto Commons.

Canto intends to leverage Ethereum’s deep liquidity as it moves from the Cosmos ecosystem and its general-purpose origins to a protocol focused on real-world asset tokenization believed to be the next frontier of DeFi

Canto, which rose to prominence at the beginning of 2023, hailed Polygon’s CDK for its ability to deploy a customizable ZK Layer-2 with easy access to Ethereum without compromising security or sovereignty. 

According to Polygon Labs, there will be no changes to Canto’s validator set and staking system.

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As highlighted by Polygon co-founder Sandeep Nailwal, Canto is joining the likes of Astar, Gnosis Pay, and Palm Network, which are building  ZK-powered Ethereum Layer-2 chains with Polygon’s CDK.

More to Come?

Outlining some of the projects building on Polygon’s ZK technology in a tweet on Tuesday, September 19, Polygon Ventures founding member Sachi Kamiya suggested this was just the tip of the iceberg. “Many are in talks or already closed,” she wrote.

The release of the CDK is, without a doubt, a game-changer for the expansion of the Polygon ecosystem in line with the 2.0 roadmap. Polygon’s Nailwal contends that developers can launch a zkEVM Layer-2 using the tool in ten minutes.

On the Flipside

  • Other Ethereum solutions, like zkSync and Optimism, also pursue a multichain scaling approach.
  • Canto’s TVL sits at $43.19 million, down nearly 79% from its peak of $204.66 million in March 2023, according to Defi Llama data at the time of writing.

Why This Matters

In recent months, Canto has been one of the most talked about crypto projects to come out of the Cosmos ecosystem. The planned transition to an Ethereum Layer-2 powered by Polygon is a nod to Polygon’s ZK technology and 2.0 roadmap. Additionally, it looks set to bring the millions of dollars and thousands of users in the Canto ecosystem to Polygon.

Read this to learn more about Phase 0 of the Polygon 2.0 implementation:
Polygon 2.0: Phase 0 Proposals Released for Community Review

Learn about last week’s crypto fund flows:
Bitcoin Funds Worst Hit as Crypto Outflows Streak Hits $500M

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.