We recover a general representation for the quantum state of a relativistic
closed line (loop) in terms of string degrees of freedom. The general form
of the loop functional splits into the product of the Eguchi functional, e
ncoding the holographic quantum dynamics, limes the Polyakov path integral.
taking into account the full bulk dynamics, times a loop effective action,
which is needed to renormalize boundary ultraviolet divergences. The Polya
kov string action is derived as an effective action from a phase space, cov
ariant, Schild action, by functionally integrating out the worldsheet coord
inates. The area coordinates description of the boundary quantum dynamics,
is shown to be induced by the 'zero mode' of the bulk quantum fluctuations.
Finally, we briefly comment about a 'unified, fully covariant' description
of points, loops and strings in terms of matrix coordinates.