Polygon announces an innovative Layer 2, Tesla sells Bitcoin due to liquidity problems and Enjin hosts Final Fantasy NFTs
Polygon is always on the move! After its participation in last week’s Disney Accelerator Program, the blockchain announced an Ethereum Layer 2 based on the very fast zero-knowledge protocols! For other news coming from the crypto world this week, Tesla, Elon Musk’s company,has decided to sell some Bitcoin to overcome some liquidity problems. Finally, Square Enix faces digital collectibles by announcing a Final Fantasy NFT collection together with Enjin.
Polygon and the layer-2 everyone was waiting for
The first news has left the entire crypto community stunned: Polygon (MATIC), the blockchain dedicated to Web3, has created a Layer 2 that could solve many of Ethereum’s problems. How? With a protocol called zkEVM (zero-knowledge Ethereum Virtual Machine). This new solution implemented by Polygon promises to significantly improve Ethereum’s performance by lowering both gas fees and transaction waiting times. But how does this new crypto technology imagined by Polygon work? The innovative Layer 2, instead of processing transactions individually, groups them together and then sends them to the Ethereum Layer 1. This way, gas fees are reduced because they are divided among all users involved and finalisation is faster.
The result? Fast, cheap and secure transactions. This system will have tangible benefits both for normal transactions and for the entire ecosystem of dApps and NFT marketplaces that will enjoy better performance. According to Polygon, its system will reduce the cost of using Ethereum by 90 per cent! In spite of this, however, Ethereum 2.0 continues to move forward fast, and its goal is to make Layer 2s like Polygon’s zkEVM unnecessary.
Elon Musk: Tesla sells 75% of its Bitcoin holdings
From Bitcoin enthusiast to paper hand? According to Tesla‘s new financial report, Elon Musk‘s company has sold 75% of its Bitcoin reserves. From $936 million in BTC, Tesla now holds only $218 million. Although it seems like a move by a crypto sceptic, Elon Musk was quick to explain that it is in no way a lack of confidence in digital gold. The reasons for the sale are to be found in the closure of factories in China due to Covid, so Tesla needs liquidity to protect itself against the lack of supply of electric car batteries.
Everyone knows the story of Elon Musk and Dogecoin, but the story of Tesla and Bitcoin also deserves to be told. The company bought its first Bitcoins in 2021 for a total of $1.5 billion. For a time, it was also possible to buy Tesla cars by paying in Bitcoin, however Elon Musk soon removed this option because he was concerned about the environmental impact of transactions with BTC. The news of Tesla’s sale, however, did not shake the price of Satoshi Nakamoto’s crypto too much: from $23,700, the price briefly dropped to $23,000 before returning to $23,400. In short, BTC confirms itself as a tough nut to crack in the crypto market, regardless of Elon Musk’s support!
Final Fantasy enters the NFT space, Square Enix launches on Enjin
Square Enix’s legendary fantasy RPG saga Final Fantasy has been making millions of gamers dream since 1987 . Now it is jumping into the world of NFTs by relying on Enjin, the blockchain dedicated to video games! The Japanese company has decided to launch a collection of both physical and digital trading cards for all fans of the saga. For the price of $4, Final Fantasy fans will be able to buy sachets containing 6 cards and a code to redeem an NFT on Efinity, Enjin’s platform built on Polkadot. Additionally, in November 2023, Square Enix will release a limited edition figurine of Cloud Strife, the famous sword-wielding protagonist from Final Fantasy VII. The figurine will come with an NFT certificate of authenticity, while a digital version of the action figure can also be obtained directly on Efinity for a small extra charge.
Enjin is a blockchain completely dedicated to video games and play-to-earn, and this collaboration with Square Enix could be the beginning of a new way of developing video games. Unlike other blockchains such as Ethereum, Enjin is much more accessible and has very low gas fees, ideal for an ecosystem where transactions are the order of the day! But Square Enix doesn’t want to stop at collectible NFTs: it wants to do much more with Enjin! In fact, the Japanese company sold the Tomb Rider franchise for a sum of 300 million dollars. Part of the proceeds were used for the development of NFT games, which will probably be integrated with Enjin and Efinity. Eyes open: the next Final Fantasy could be on blockchain!
