The apps that are being developed for diverse solutions to various use cases are based on various blockchain protocols that are now accessible on the market.
And polygon vs ethereum are two of the most promising protocols of the many available. Here we will not only be looking into the two mentioned blockchain protocols but will also take a comparative analysis of them.
Overview
There are a few important variations between the two ecosystem kinds that might make deciding which one is best for you challenging. Polygon is a website devoted to digital art and design, whereas Ethereum is devoted to nature and environment. Is there a significant difference between Polygon and Ethereum?
What Is a Crypto Ecosystem?
A crypto ecosystem is a group of processes and functions that all have to do with cryptography. Each participant wants to do or get something out of the different things that keep the crypto environment active and alive.
Blockchain protocols and developers, miners and stakers, crypto exchanges, investors, and crypto media are some of the essential parts of the crypto ecosystem.
The blockchain ecosystem can give daily business activities genuine decentralization, immutability, transparency, accountability, and flexibility.
What is Polygon (MATIC)?
A blockchain called Polygon (MATIC) was created with developers in mind to address some of the most pressing problems they are now facing.
The protocol was created to serve as Ethereum’s “Internet of Blockchains eventually.” Early on, the creators anticipated that there would be thousands of Ethereum-based blockchains active in the market.
MATIC such a beautiful asset to look at, reasoning with how Polygon’s capacity to improve Ethereum’s multi-chain ecosystem makes it a unique crypto asset that can be regarded as having blended attributes of both Ethereum and Solana.
- A Layer 2 scaling option for Ethereum infrastructure development is Polygon (MATIC).
- The Ethereum Virtual Machine is supported by it as the only scaling solution (EVM).
- Secure and standalone chains are both supported by Polygon.
What is Ethereum (ETH)?
Ethereum is a blockchain-based decentralized global software platform at its heart. It is most commonly known for its native cryptocurrency, ether, or ETH.
Scalable, programmable, secure, and decentralized are all features of Ethereum. It is the blockchain of choice for businesses and developers who are building technologies on top of it to transform several sectors.
Advantages vs. Disadvantages
Ethereum
| Advantages | Disadvantages |
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Polygon
| Advantages | Disadvantages |
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What Do They Have in Common?
Both Polygon and Ethereum are blockchain platforms that allow developers to create and deploy decentralized applications. Both platforms use smart contracts to facilitate transactions and both platforms are powered by their own native tokens.
Polygon Vs Ethereum: What Are The Differences Between 2 Ecosystems?
There are some key differences between the two platforms. Let’s find out with Covemarkets!
Mechanism
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. It is designed to provide a scalable and secure environment for decentralized applications and smart contracts.
Polygon
Polygon uses a unique consensus mechanism called Proof of Stake Security Deposit (PoSSD). PoSSD is a hybrid of Proof of Stake (PoS) and security deposit consensus. It combines the best features of both consensus mechanisms to provide a more secure and scalable platform.
Programming language
Polygon uses the Solidity programming language, while Ethereum uses a variety of languages including Solidity, Vyper, and Bamboo.
Technology
Polygon
Polygon is a layer 2 solution for Ethereum. It is a modular platform that provides scalability and security to Ethereum-based applications. Polygon uses a variety of different technologies to achieve its goals. These include:
- Plasma: Plasma is a scaling solution for Ethereum. It allows for the creation of child chains that can be used to process transactions off-chain. This reduces congestion on the main Ethereum network and allows for faster transaction processing.
- PoS Bridge: The PoS Bridge is a technology that allows for the transfer of value between different Ethereum-based networks. This allows for the creation of cross-chain applications and services.
- Matic Network: The Matic Network is a sidechain solution for Ethereum. It uses Proof of Stake (PoS) to secure its network and allows for fast and cheap transaction processing.
- Security: Polygon uses a variety of security measures to protect its network. These include a decentralized fraud detection system and a security deposit system.
- Ecosystem: Polygon has a growing ecosystem of applications and services. These include wallets, exchanges, and dapps.
Ethereum
The technology of Ethereum is very different from other virtual currencies. The main difference is the use of smart contracts. A smart contract is a computer protocol that allows the exchange of digital assets between two parties without the intervention of a third party.
Ethereum uses the blockchain technology to store and manage the smart contracts. The blockchain is a distributed database that stores all the transactions made on the network. It is a public ledger that can be verified by anyone.
Ethereum is built on the Ethereum Virtual Machine (EVM), which is a decentralized network of computers that can run smart contracts. It executes the smart contracts and stores the results on the blockchain.
Decentralization
Ethereum
Ethereum has been working on its own scaling solutions, which includes the implementation of sharding. Sharding will allow the Ethereum network to be divided into multiple shards, each of which can process transactions in parallel.
This will greatly increase the throughput of the Ethereum network. Ethereum are both working on scaling solutions that will allow them to handle more transactions per second.
Polygon
Polygon has planned to decentralize itself. So far, the network has been centralized and managed by Matic Foundation.
Polygon is also working on a decentralized exchange, which will allow users to trade cryptocurrencies without having to trust a central authority.
Downtimes
Polygon has been operational for a while and has never seen any downtime. However, Ethereum has gone through many downtimes. There have been issues with forks and upgrades that have led to a lot of downtime.
Ethereum had an average downtime of 18 hours and a maximum downtime of 1 day and 3 hours.
Transaction cost (Gas fees)
The transaction cost of Polygon is very low when compared to Ethereum. This is because the transaction cost of Polygon is only a fraction of Ethereum’s transaction cost. Polygon has a transaction fee of $0.00015, while Ethereum has a transaction fee of $0.001.
Transaction speed
Polygon is a fast and scalable Ethereum-compatible blockchain network. It achieves high transaction speeds by using a system of sidechains.
Ethereum’s transaction speed is limited by its use of a single blockchain. This results in slower transaction speeds and higher fees.
Polygon’s transaction speed is much faster than Ethereum’s, due to its use of sidechains. However, Ethereum’s transaction speed is still faster than most other blockchain networks.
Network size
The size of the Ethereum network is constantly growing and as of June 2018, there were over 32,000 nodes active on the network. The size of the Polygon network is not publicly available but is estimated to be around 500-1,000 nodes.
Scalability
Ethereum
As for scalability, Polygon has an edge over Ethereum. It can process about 65,536 transactions per second as compared to Ethereum’s 15 transactions per second. Such a high transaction rate comes in handy when you need to get large amounts of transactions processed quickly. For example, it comes in handy during times of peak traffic.
Polygon
Polygon is also the better option if you need to process more complex transactions. These transactions tend to take longer on Ethereum due to its high transaction fee. However, Polygon offers faster processing at a lower transaction fee. This makes it the better option if you need to process large amounts of data quickly.
Market cap
| NAME | POLYGON | ETHEREUM |
| Volume 24h | $265,264,323 | $8,811,584,029 |
| Price | $0.8783 | $1,551.38 |
| Total Supply | 10,000,000,000 MATIC | 122,230,714 ETH |
| Market Cap | $7,618,160,006 | $189,596,878,824 |
DeFi ecosystem
Polygon
Polygon has launched a new website to promote its DeFi ecosystem. The website highlights the benefits of using Polygon for DeFi applications and also provides information on the various protocols and platforms built on top of Polygon.
The website contains a section on “Why Polygon” which explains the advantages of using Polygon for DeFi applications. It also has a section on “How to use Polygon” which provides instructions on how to use Polygon for DeFi applications.
The website also contains a section on “Resources” which provides links to various resources such as tutorials, documentation, and forums.
Ethereum
Ethereum’s DeFi ecosystem is the most active in the industry. The total value locked in Ethereum DeFi protocols has risen from $675 million to $13 billion in just one year. The leading protocols in Ethereum’s DeFi ecosystem are MakerDAO, Synthetix, Kyber Network, and Compound.
NFTs
Polygon
Polygon launched its Polygon NFT Marketplace. The marketplace allows users to mint, buy, and sell NFTs. The marketplace is integrated with the Ethereum network, allowing users to mint NFTs using their Ethereum addresses.
The Polygon NFT Marketplace supports ERC-721 and ERC-1155 tokens. ERC-721 tokens are non-fungible tokens that represent unique items, such as digital art or in-game items. ERC-1155 tokens are non-fungible tokens that represent a class of items, such as a set of digital trading cards.
Ethereum
Ethereum was the first platform to implement NFTs. One of the most famous examples is CryptoKitties, a game that allows you to breed and collect virtual cats. Since then, Ethereum has become the blockchain of choice for NFTs. Over 95% of all NFT transactions take place on Ethereum.
The majority of NFTs have been created using Ethereum’s ERC-721 and ERC-1155 standards. The best-known examples of NFTs on Ethereum include digital collectibles such as CryptoKitties, Decentraland land parcels, and NBA Top Shot packs.
At a Glance
| Name | Ethereum | Polygon |
| Launch Date | 2013 | 2017 |
| Founder | Vitalik Buterin and Gavin Wood | Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun |
| Blockchain Protocol | Ethereum Blockchain | Ethereum Blockchain (ERC20 token) |
| Native Token | ETH | MATIC |
| Token Type | Native | ERC-20 |
| Market Cap | $186,101,941,070.28 | $7,205,508,242 |
| Circulating Supply | 121,609,295.81 ETH | 8.01B MATIC |
| Max Supply | NA | 10,000,000,000 |
| Consensus Method | PoW but soon to move to Proof-of-stake (PoS) | Plasma Framework + Proof-of-stake (PoS) |
| Architecture | Stateful architecture | Multichain architecture |
| Scalability | Limited Scalability | Multichain solutions offer better scalability |
| Transaction Speed | 13-15 TPS | 72,000 TPS |
Potential Projects
Both Polygon vs Ethereum have potential projects for investors to invest in.
On Polygon
There are a variety of projects that can be done on Polygon. Here are some examples:
- FarmHero: On this list, this endeavor is arguably the most distinctive. A unique system called FarmHero combines NFT, gaming, and DeFi ideas. Users can make money in many different ways, including yield farming, single-sided staking, NFT trading, playing house games, rebasing prizes, and I’m sure there will be more options in the future. They have used CertiK’s SkyNet to monitor their website in real-time and have had an audit performed by CertiK.
- Firebird.finance: As a “one-stop” DeFi platform, Firebird offers farming as a service, liquidity pools, vaults, governance staking, and a swap aggregator service (similar to 1inch). They have established some excellent collaborations and have undergone a few audits. Being the first to participate in the Iron Finance relaunch and the only vault approved for usage by Kyber’s DMM
- Harvest.finance: The DeFi project with the strongest foundation, in my opinion, is Harvest. In light of the fact that they have undergone numerous audits and have successfully finished four of them, security appears to be satisfactory. Additionally, Harvest recently released three Polygon techniques, with the promise of more to follow.
- Dinoswap.exchange: At the time of writing, they have more than $350 million TVL, but I’m ready to assume that number is rather inflated given the price of DINO tokens at the moment. They presently rank among the top 6 DeFi projects on Polygon according to DeFillama.
- Dfyn.network: Dfyn is a cross-chain Decentralized Exchange (DEX) that has farms and a built-in gas-free mode. And let me tell you, Dfyn’s gasless mode has come to my rescue a number of times when I’ve unintentionally switched all of my MATIC to a coin I want to farm. Dfyn’s initial release was on Polygon, and future expansions include BSC, HEC, Avalanche, Polkadot, Algorand, and others.
On Ethereum
Ethereum is a leading computing platform that enables the development of decentralized apps able to manage digital currency. In the past, numerous projects have developed their concepts on the Ethereum network.
However, when Ethereum underwent its eleventh upgrade, dubbed the “London Hardfork” on August 4, 2021, it attracted the attention of even more projects because to its efficiency and performance mechanism.
- Infinite Axie: As one of the most popular NFT games and a profitable coin, Axie Infinity is popular on the NFT market. Axie Infinity is a prominent Ethereum NFT project that enables participants to engage in a trading battle game in which they can train and cultivate Axies.
- Decentraland: Decentraland is an entirely three-dimensional online virtual realm. Since its introduction in 2020, the platform, which is based on the Ethereum blockchain, has made significant progress. The platform enables gamers to purchase land parcels with its native cryptocurrency token, MANA. Players can purchase land and explore Decentraland, and they have complete power over the platform using smart contracts.
- The Sandbox: The Sandbox is an additional well-known NFT project that is primarily recognized for its blockchain-based virtual environment and video game. It is a community-driven virtual metaverse game that enables the monetization of assets and gameplay on the blockchain network.
Polygon vs Ethereum: MATIC vs ETH – Which Is a Better Investment?
Polygon is a protocol that allows users to interact with the Ethereum blockchain in a more efficient and secure manner. It is also a project that is backed by some of the biggest names in the crypto industry, including Coinbase, Binance, and Polychain Capital.
Ethereum, on the other hand, is the second-largest cryptocurrency by market capitalization and the most popular smart contract platform in the world. It has a large and active developer community and is constantly evolving.
So, which is a better investment? Well, it depends on your investment goals and risk tolerance. If you’re looking for a safe and stable investment, then Ethereum is a better choice. However, if you’re looking for a high-growth investment with the potential for big returns, then Polygon is a better option.
Where to buy MATIC and ETH?
Polygon (MATIC) and Ethereum (ETH) are now available for buy on the following exchanges.
Bitstamp – Founded in 2011, Bitstamp is one of the world’s oldest and most trustworthy exchanges. This exchange presently welcomes inhabitants of Canada, the United Kingdom, and the United States, with the exception of Alabama, Hawaii, Idaho, Louisiana, Nevada, and New Jersey.
Uphold – This is a leading exchange for residents of the United States and the United Kingdom, offering a diverse choice of cryptocurrencies. Germany and the Netherlands are not permitted.
Uphold Disclaimer: The assets available on Uphold vary by area. All investments and trading are hazardous and may result in money loss. Because cryptoassets are mostly unregulated, they are not protected.
Binance – Best for Australia, Canada, Singapore, the United Kingdom, and the rest of the globe. Most tokens are not available to residents of the United States. Use Discount Code: EE59L0QP to receive 10% off all trading costs.
FAQs
Which one should I choose?
If you are looking for a blockchain platform that is scalable, secure, and easy to develop on, then Ethereum is the better choice. However, if you need a blockchain that is specifically designed for data storage and processing, then Polygon is the better option.
Is Polygon more secure than Ethereum?
Overall, Polygon may be slightly more secure than Ethereum due to its additional security features and robustness against potential attacks. Because it uses a different consensus mechanism (Proof of Stake vs. Proof of Work) and because it has built-in mechanisms to prevent 51% attacks.
Which is more advanced?
Polygon is more advanced than Ethereum in terms of scalability, privacy, and security. Polygon also has a more robust governance model and is better equipped to handle large-scale enterprise applications.
Is Polygon an Ethereum killer?
No, Polygon is not an Ethereum killer.
Will Polygon be as big as Ethereum?
It is not possible to compare the two platforms directly as they serve different purposes. However, Polygon has seen significant growth since its launch in 2021 and is now one of the largest Ethereum scaling solutions. Polygon has a lot of potential and could become a major player in the cryptocurrency space.
Is Polygon or Ethereum more popular?
It is difficult to say which is more popular as both have their own dedicated communities. However, Ethereum may have a slight edge in popularity due to its status as the leading platform for smart contracts and decentralized applications. So Ethereum is more popular than Polygon.
Where can I learn more about them?
There is a lot of information available about both Polygon and Ethereum. You can find a lot of it by searching online. Alternatively, you can go to the websites Covemarkets.com for each project and read your own information.
Conclusion
Polygon and Ethereum are two of the most popular platforms in the cryptocurrency space. Both have their own strengths and weaknesses, but which one is better? Both Polygon and Ethereum have their own benefits and drawbacks. However, overall, Ethereum is the better platform due to its larger user base, more development activity, and stronger ecosystem. Hopefully, this article will help you to find the best cryptocurrency to invest in in 2023!
