Polygon SubNet Architecture Analysis: How Polygon plans to scale out

TLDR at the bottom

Recently, Polygon announced a new roadmap, branding and architecture for how they plan to scale out the Polygon stack. In this post, I am interested in breaking down how this architecture operates and how it can positively impact the Polygon network.

Polygon Rebrand

Polygon’s rebrand from MATIC to POL, made some shockwaves around the Ethereum ecosystem and in Crypto. The rebrand came with a few major changes, however, the one I want to highlight is it’s change from a single blockchain, to a Validium Rollup.

This change, could be an instance that makes Polygon Network, a decentralized Rollup, which is a feat not obtained yet, by networks like Arbitrum and Optimism. This change, would utilize the current day Polygon validator set, to not only validate transactions on the Polygon network, but also, send batches of these transactions to the Ethereum to obtain final settlement on Ethereum mainnet. This provides a clear difference between Polygon and Optimism and Arbitrum, where these other two networks utilize a single sequencer to validate and send these batches of transactions to the Ethereum Mainnet.

Polygon: SubNet Security

With the renewed architecture for the chain itself, one of the major new features for Polygon, will be the ability for Polygon Validators to run new nodes, to secure subnets as well. This is extremely similar to EigenLayer, or Interchain Security V2, on the Cosmos Hub, if you’re familiar with those architectures. One of the main differences would be, that these SubNets would be Validiums, which would be validated by the Polygon validators and settled onto the Ethereum mainnet.

Basically, it’ll go like this. A Validator will have the option to to opt-in or out of running a new node, with this node running the operations of a new blockchain or SubNet. In order for this SubNet to be ran in a trustworthy manner, this Validator will have its POL stake, at risk of being slashed, if it performs a malicious operation on the SubNet. In return for the slashing risk, the validator will earn fees from the new SubNets it validates.

This slashing risk and additional reward makes it a potential wonderful opportunity for Delegators and Validators to earn additional rewards.

However, on the other hand, this can have centralization risks. As the Validators with the most capital, will be the ones able to risk such slashing events as well as be able to afford the costs associated with new nodes and general upkeep for a validator node. It will be extremely interesting to see how this upgrade to the Polygon network, works in practice and it’s important for delegators in the Polygon Network to stay vigilant, in order for the network to retain decentralization amongst the validators in the network.

TLDR

Polygon is undergoing a new upgrade, in which I the network will become a validium with a distributed validator set, which will operate the validation of the network and the sequencing of the networks transactions, to the Ethereum Mainnet.

In addition to this change, the Polygon network will also be utilizing its validator set, to allow for a Polygon validium or SubNet stack and SDK. In addition to this SDK, the stack will enable a new validium to be spun up and various Polygon validators too Opt-In to running a new node, for this new validium. In order to ensure economic alignment for trustworthy behavior by the validators, the validators will be have their POL (previously MATIC) stake at risk of slashing, if they perform malicious actions on the new validium. However, in response to this additional slashing risk, these Validators will be able to earn revenue from the fees generated through this new Validium or SubNet.