How can on-chain data be aggregated?


On-chain data aggregation can be approached in different ways:

  1. Spectrum of Chains: Sandeep Nailwal of Polygon describes a spectrum of solutions ranging from fully sovereign chains with simple bridges to Ethereum, to Polygon PoS, and up to pure layer twos like ZK roll-ups. These differ based on how they handle data and its linkage back to Ethereum. For instance, Polygon PoS involves activities posted on Ethereum, where every transaction can be verified, but less data is transmitted to conserve costs. Pure layer twos offer higher security by including all off-chain data and dispute resolutions back into Ethereum, though this can be costly 1.

  2. Crypto Oracles: Balaji Srinivasan discusses the use of oracles that broadcast data on-chain, such as weather or medical records. These oracles can be integrated into a broader 'ledger of record', which compiles various data feeds into a cryptographically verifiable, unalterable history. This not only provides transparency but also creates economic incentives, as this data is often valuable for trading and other financial activities 2.

Both methods highlight how the aggregation of on-chain data is pivotal for enhancing blockchain functionality and reliability by connecting real-world data with blockchain protocols.

Ethereum Scaling Spectrum

Sandeep discusses the broad concept of ethereum scaling, highlighting the spectrum of solutions available. From fully sovereign chains to layer twos, he explains the trade-offs between security and cost, and shares insights on the preferences of big participants in the web3 space.


94 - The Swiss Army Knife of Scaling | Polygon's Sandeep Nailwal & Mihailo Bjelic