Nailwal’s Leadership Signals Polygon’s AggLayer as Interoperability Leader

Polygon co-founder Sandeep Nailwal has taken the helm as the first CEO of the Polygon Foundation, signaling a bold pivot toward establishing the AggLayer protocol as a cornerstone for blockchain interoperability.

As competition intensifies in the layer-2 space, Nailwal’s leadership aims to unify fragmented blockchain ecosystems, positioning Polygon as a leader in decentralized finance (DeFi) and gaming applications.

AggLayer’s Vision for Seamless Blockchain Connectivity

Polygon’s interoperability protocol, the AggLayer, is designed to bridge disparate blockchain networks and enable seamless data and value transfer across layer-1 and layer-2 chains, with its v0.3 release set for December 2025.

Under Nailwal’s direction, the Polygon Foundation is prioritizing AggLayer’s integration with major partners like JPMorgan and Stripe, aiming to create a unified ecosystem for DeFi platforms and Web3 gaming.

This move addresses a critical industry challenge: the fragmentation that hinders user experience and scalability. “AggLayer is about making blockchains work as one internet-like system,” Nailwal said in a recent keynote, emphasizing its potential to support over 100,000 transactions per second via the upcoming “GigaGAS” upgrade to Polygon’s proof-of-stake chain.

Industry analysts project that AggLayer could capture 20% of cross-chain transaction volume by 2026, challenging rivals like Cosmos and Polkadot.

ALSO READ | Parataxis’ South Korea Expansion Signals Asian Crypto Market Boom

Understanding Polygon’s AggLayer

Polygon’s AggLayer, short for Aggregation Layer, is an innovative protocol that enables different blockchains to interoperate as a cohesive network, sharing liquidity and data without relying on centralized bridges.

Unlike traditional cross-chain solutions, AggLayer uses zero-knowledge proofs to ensure secure and efficient communication between chains, reducing latency and costs.

For example, a DeFi user could execute a trade on a Polygon-based decentralized exchange while accessing liquidity from an Ethereum layer-1 protocol, all within a single transaction.

The protocol’s upcoming Bhilai upgrade in July 2025 will enhance its capabilities, introducing faster transaction finality and lower gas fees, making it attractive for high-volume applications like gaming and payments.

By unifying ecosystems, AggLayer aims to simplify Web3 development, allowing builders to focus on creating user-friendly applications rather than navigating complex chain interactions.

Did you know?
Polygon’s AggLayer, in its v0.2 testing phase, achieved a transaction latency of under 2 seconds for cross-chain transfers between Ethereum and Polygon’s proof-of-stake chain, as reported by Polygon Labs in a March 2025 technical update, highlighting its efficiency in blockchain interoperability.

Overcoming Interoperability Challenges

Despite its promise, AggLayer faces technical and competitive hurdles. The planned sunsetting of Polygon’s zkEVM chain in 2026, due to performance bottlenecks, has raised concerns among developers, who must now transition to AggLayer-compatible solutions.

Nailwal’s team is addressing these issues by streamlining developer tools and offering grants through the Polygon Foundation to support projects building on AggLayer, with $15 million allocated in 2025 alone.

Competition from other interoperability protocols, such as Chainlink’s CCIP, adds pressure with a reported 30% increase in cross-chain transactions in Q1 2025. However, Polygon’s established partnerships and Nailwal’s centralized leadership could accelerate AggLayer’s adoption.

“The shift to a CEO-led model gives Polygon the agility to execute on AggLayer’s ambitious roadmap,” said blockchain analyst Priya Sharma at CryptoInsights.

Empowering Web3 Gaming Ecosystems

AggLayer’s interoperability is poised to transform Web3 gaming, a sector projected to reach $40 billion globally by 2026, by enabling seamless in-game asset transfers across multiple blockchains.

For instance, players could use polygon-based NFTs in games hosted on Ethereum or Binance's Smart Chain without complex bridging processes, enhancing the user experience and adoption.

Nailwal’s strategy includes partnerships with gaming studios like Animoca Brands, which plans to integrate AggLayer into its portfolio of over 400 Web3 games by mid-2026.