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Polygon’s AggLayer Welcomes Astar Network for Enhanced Cross-Chain Liquidity – Paving The Way for Interoperability
March 06, 2024
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  • The AggLayer of Polygon is welcoming its first network integration with a prominent Japanese Web3 community Astar. 
  • Astar users would be able to access liquidity in the Polygon ecosystem in addition to several other benefits. 

In the wake of recent shortcomings of blockchains that pose scaling limitations to users, Polygon (MATIC) announced the introduction of Aggregation Layer (AggLayer) to unify the divided landscape into secured L1 and L2 chains. Drawing insight from a previous publication by the Crypto News Flash, the first version of the AggLayer was launched in February 2024 with the second version (V2), which would support asynchronous cross-chain transactions, expected to be launched later this year.  

In less than two months after launch, a very popular blockchain in the Japanese Web3 community, Astar Network, has disclosed that its Astar zkEVM is on the verge of becoming the first network to be fully integrated into the Polygon’s AggLayer. 

Sandeep Nailwal, co-founder of Polygon announced:

Today is an important first step to welcoming communities to a seamless multi-chain ecosystem. With Astar and numerous other ZK-powered chains onboarding soon, Polygon CDK and AggLayer are poised to bring internet-scale capabilities to the world of crypto.

With technology advancing at a rapid pace, Astar zkEVM made earlier attempts to catch up as it seized the opportunity to be powered by Polygon’s Chain Development Kit (CDK). The opportunities in this collaboration appear limitless, ranging from access to liquidity in the Polygon ecosystem to the possibility of cross-chain transactions between Astar and Polygon zkEVM. 

More Light on the Polygon’s AggLayer

According to the initial announcement by Polygon, the AggLayer does two main things – aggregates ZK Proofs from all connected chains, and ensures the safety for near-instant cross-chain transactions. Digging deep into the first AggLayer released shows that it has a bridgeAndCall() Solidity library that enables developers to program logic to execute calls on different chains.

In this case, users can trigger contracts on a different chain after the arrival of the asset in addition to transferring assets between chains (bridge). The next version to be launched would reportedly focus on increasing the speed of finality and the synchronizer for fast execution of messages between chains. 

The report also explained the gap in blockchains and the need for AggLayer:

Blockchains today don’t look or feel like the Internet. Instead of a unified, highly scalable network, users face scaling limitations and bad UX due to fragmented liquidity and state. Unfortunately, the ever-increasing list of new chains being launched has compounded the problem. This environment is reminiscent of the pre-Internet era, siloed and lacking interoperability. We need to do better.

The advantage of this project to dApp developers is that they can now reach users in aggregate. In this case, users can interact with it without bridging UX even if the users are on a different chain. End users would enjoy a single environment that does not demand frequent bridging. L1s and L2s connected to the AggLayer would also have full control on top of tapping into a huge pool of unified liquidity. 

Polygon (MATIC) was down by 4% in the last 24 hours, trading at $1.08 despite this groundbreaking development. The asset, regardless, has a bullish market sentiment with a score of 76/100, and a market cap of $10,637,831,877. Crypto News Flash recently reported that MATIC has a good chance of hitting $2 but would have to deal with a series of obstacles

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The Great Onboarding: US Government Anchors Global Economy into Web3 via Pyth Network

For years, the crypto world speculated that the next major cycle would be driven by institutional adoption, with Wall Street finally legitimizing Bitcoin through vehicles like ETFs. While that prediction has indeed materialized, a recent development signifies a far more profound integration of Web3 into the global economic fabric, moving beyond mere financial products to the very infrastructure of data itself. The U.S. government has taken a monumental step, cementing Web3's role as a foundational layer for modern data distribution. This door, once opened, is poised to remain so indefinitely.

The U.S. Department of Commerce has officially partnered with leading blockchain oracle providers, Pyth Network and Chainlink, to distribute critical official economic data directly on-chain. This initiative marks a historic shift, bringing immutable, transparent, and auditable data from the federal government itself onto decentralized networks. This is not just a technological upgrade; it's a strategic move to enhance data accuracy, transparency, and accessibility for a global audience.

Specifically, Pyth Network has been selected to publish Gross Domestic Product (GDP) data, starting with quarterly releases going back five years, with plans to expand to a broader range of economic datasets. Chainlink, the other key partner, will provide data feeds from the Bureau of Economic Analysis (BEA), including Real Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index. This crucial economic information will be made available across a multitude of blockchain networks, including major ecosystems like Ethereum, Avalanche, Base, Bitcoin, Solana, Tron, Stellar, Arbitrum One, Polygon PoS, and Optimism.

This development is closer to science fiction than traditional finance. The same oracle network, Pyth, that secures data for over 350 decentralized applications (dApps) across more than 50 blockchains, processing over $2.5 trillion in total trading volume through its oracles, is now the system of record for the United States' core economic indicators. Pyth's extensive infrastructure, spanning over 107 blockchains and supporting more than 600 applications, positions it as a trusted source for on-chain data. This is not about speculative assets; it's about leveraging proven, robust technology for critical public services.

The significance of this collaboration cannot be overstated. By bringing official statistics on-chain, the U.S. government is embracing cryptographic verifiability and immutable publication, setting a new precedent for how governments interact with decentralized technology. This initiative aligns with broader transparency goals and is supported by Secretary of Commerce Howard Lutnick, positioning the U.S. as a world leader in finance and blockchain innovation. The decision by a federal entity to trust decentralized oracles with sensitive economic data underscores the growing institutional confidence in these networks.

This is the cycle of the great onboarding. The distinction between "Web2" and "Web3" is rapidly becoming obsolete. When government data, institutional flows, and grassroots builders all operate on the same decentralized rails, we are simply talking about the internet—a new iteration, yes, but the internet nonetheless: an immutable internet where data is not only published but also verified and distributed in real-time.

Pyth Network stands as tangible proof that this technology serves a vital purpose. It demonstrates that the industry has moved beyond abstract "crypto tech" to offering solutions that address real-world needs and are now actively sought after and understood by traditional entities. Most importantly, it proves that Web3 is no longer seeking permission; it has received the highest validation a system can receive—the trust of governments and markets alike.

This is not merely a fleeting trend; it's a crowning moment in global adoption. The U.S. government has just validated what many in the Web3 space have been building towards for years: that Web3 is not a sideshow, but a foundational layer for the future. The current cycle will be remembered as the moment the world definitively crossed this threshold, marking the last great opportunity to truly say, "we were early."

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US Dept of Commerce to publish GDP data on blockchain

On Tuesday during a televised White House cabinet meeting, Commerce Secretary Howard Lutnick announced the intention to publish GDP statistics on blockchains. Today Chainlink and Pyth said they were selected as the decentralized oracles to distribute the data.

Lutnick said, “The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto President. And we are going to put out GDP on the blockchain, so people can use the blockchain for data distribution. And then we’re going to make that available to the entire government. So, all of you can do it. We’re just ironing out all the details.”

The data includes Real GDP and the PCE Price Index, which reflects changes in the prices of domestic consumer goods and services. The statistics are released monthly and quarterly. The biggest initial use will likely be by on-chain prediction markets. But as more data comes online, such as broader inflation data or interest rates from the Federal Reserve, it could be used to automate various financial instruments. Apart from using the data in smart contracts, sources of tamperproof data 👉will become increasingly important for generative AI.

While it would be possible to procure the data from third parties, it is always ideal to get it from the source to ensure its accuracy. Getting data directly from government sources makes it tamperproof, provided the original data feed has not been manipulated before it reaches the oracle.

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