Sports betting company, DraftKings, has announced that it has become a full validator on the Polygon Network, a scaling platform based on the Ethereum network. DraftKings has a market capitalization of $20 billion and made the announcement on Monday.
Details Of The Collaboration
Draftkings provides mainstream accessibility, allowing custom NFT drops with secondary market transactions. The partnership will enable the DraftKings Marketplace to access an eco-friendly, scalable blockchain solution that offers expanded capabilities and extra throughput. DraftKings could also contribute to governance on Polygon, helping to secure the network with its own stake pool.
DraftKings Role As A Validator
DraftKings Marketplace is an ecosystem that focuses on NFTs and will be launching a node on the Polygon Network. The node will utilize a Proof-of-Stake consensus mechanism to authenticate transactions. This will reduce the cost of transactions on the Polygon Network while also reducing the Carbon cost of each transaction.
The Co-founder and president of global product and technology at DraftKings, Paul Liberman, released a statement on the partnership, commenting,
“Scalability and sustainability remain among the critical challenges of blockchain technology, so as we lay the groundwork today for the vision of DraftKings Marketplace tomorrow, the vast insights and proven products from Polygon around scalable solutions are invaluable. Although DraftKings Marketplace is still in its nascency, we are bullish on the possibilities that blockchain, NFTs, cryptocurrency, and more will present as we prepare for Web 3.0 alongside Polygon and the new innovations ahead for digital collectibles.”
DraftKings has already collaborated with Autograph to launch its Pre-season Access Collection. Autograph is backed by NFL superstar Tom Brady and features NFT collectibles from athletes, including US gymnast Simone Biles and Jamaican Sprint legend Usain Bolt. It also features others such as Naomi Osaka, Wayne Gretzky, and Derek Jeter.
“Leveraging Polygon’s technology, DraftKings will be able to expand the variety and capabilities of DraftKings Marketplace for an enhanced user experience with even more exclusive content and drops, said Sandeep Nailwal, co-founder at Polygon. “DraftKings Marketplace already provides fans and collectors with a seamless way to buy and resell authentic digital collectibles within a highly accessible ecosystem, so we look forward to being part of its continued growth.”
Cryptocurrencies As Payment
CEO of DraftKings, Jason Robins, also revealed that the company has looked at adding cryptocurrencies as a mode of payment, but current regulations have been a significant hindrance that have prevented the company from going ahead.
He stated that while crypto is currently not an accepted form of payment in any of the states, he foresees cryptocurrencies as game-changing, with the potential to “transform entire industries.”
The Emergence Of Ethereum Alternatives
Cheaper blockchains such as Polygon have emerged as a strong alternative to the Ethereum blockchain, which has been seeing significantly high fees since the start of September. The high fees, coupled with the negative environmental impact of transactions on Ethereum, have prompted several users to move towards cheaper and more sustainable blockchains such as Polygon and Solana.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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