Will the price of Polygon (MATIC) increase after the release of “Polygon ID”?

Ethereum’s leading sidechain, Polygon (MATIC), recently launched Polygon ID, a web3 identity service that allows blockchain-based applications to validate user credentials without risking personal data. The Polygon ID self-sovereign identity infrastructure stack will bring developers one step closer to solving the digital trust problem, according to the official announcement.

ZK Proof Powered Polygon ID has been released

The official release states that the use of Polygon ID could be beneficial in compliance use cases such as the “Know Your Customer (KYC)” process required for centralized exchanges, permissioned DeFi protocols, as well as fiat payment gateways that facilitate ramps in and out . In addition, it can also be applied to customer onboarding for e-commerce platforms, passwordless login, use by banks as a method for issuing secured loans, and use in decentralized autonomous organizations (DAOs). Additionally, it can be used in conjunction with Polygon’s wallet.

Read more: Check out the Top 10 DeFi Lending Platforms of 2023

This may mean that companies using Polygon ID will no longer have to deal with the problems associated with maintaining user data. For individuals, this means more control over their identity, as well as more latitude in how they use their personal data to respond to inquiries from public and commercial organizations.

A representative representing the project is quoted as saying:

Polygon ID enables compliance for both web2 and web3 industries, which strengthens the regulatory framework through KYC/AML checks.

“Credential reuse and self-mastery also reduces the cost, time and complexity of user onboarding and verification,” he added.

Polygon (MATIC) Price Increase Ahead?

Grail, DePay, Kaleido, Fractal, and Clique are examples of polygon-based crypto and NFT initiatives that have already demonstrated their support for Polygon ID, which comes with developer tools. The solution leverages zero-knowledge pools, commonly called ZK Proofs, which authenticate data while keeping it encrypted and hidden from the verifier — validating user data for Dapps while maintaining on-chain privacy.

The technical team behind Polygon Labs has included the recognition toolkit technology in Polygon zkEVM, which is scheduled to be released later this month. The Polygon community has largely welcomed this new development, and market watchers expect a significant price spike in the coming days ahead of launch. As things stand, Polygon (MATIC) price is currently trading at $1.24, representing a 4.22% increase over the past 24 hours, as opposed to a 8.15% decline over the past seven days, according to CoinGape crypto tracker.

Read also: Hedera Onboards Top official Coinbase to drive development. HBAR Price Ready for Bull Run?

Pratik has been a crypto evangelist since 2016 and has been through almost everything crypto has to offer. Whether it’s the ICO boom, the bear markets of 2018, Bitcoin halving by now – it’s seen it all.

The content presented may include the personal opinion of the author and is subject to terms of purchase. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.