Popular duo of the cryptocurrency listing, Polygon and Ethereum, are two of the proof-of-stake networks developed for on-chain users to trade with DeFi or interact with the metaverse via GameFi on NFTs. But some investors are confused as to what the difference is between both chains.
Overview of Polygon and Ethereum
Polygon and Ethereum are both leading blockchain projects with different goals. Ethereum is an open-source, public blockchain platform that supports smart contracts and decentralized applications (dApps). It allows developers to create digital assets, decentralized exchanges, lending protocols and stablecoins. On the other hand, Polygon is a scaling solution for the Ethereum network, designed to address scalability challenges. Using second-tier solutions such as Plasma, Optimistic Rollups and zkRollups, Polygon increases throughput and reduces costs.
Polygon is designed to be Ethereum compatible, allowing developers to deploy dApps without changing their code. Therefore, Polygon acts as a complementary layer to Ethereum, improving its scalability, security, and interoperability. Together, these projects offer a powerful combination that supports a robust ecosystem for decentralized applications.
Polygon and Ethereum: NFTs
Recently, the OpenSea platform has added support for Polygon NFTs as well as Ethereum NFTs. The addition of Polygon NFTs was due to the fact that the cost of swapping in Ethereum became too expensive for regular investors and they needed an alternative.
While Polygon is a cheaper alternative, the NFTs in their network are significantly worse and have little cultural significance. Major popular NFTSs like Cryptopunks, Bored Ape Yacht Club, Azuki’s and Pudgy Penguins are all based on Ethereum and not available on secondary chains like Polygon.
Polygon and Ethereum: DeFi
If you are managing less than $1 million in capital, it is inefficient to use DeFi products on Ethereum because the cost of deposits and withdrawals or liquidity is too high. Gas fees on Ethereum significantly reduce your yield and then make your yield farming on the network unnecessary.
For example, on Polygon instead of Ethereum, you can use the AAVE platform and get the same return for significantly less transaction fees. Polygon is therefore by far the best way to interact with DeFi for smaller accounts.
Polygon and Ethereum: GameFi
Because the cost of transacting on Ethereum is so high, the gaming industry has completely moved away from the ETH blockchain. We’ve seen popular GameFi games like CryptoRaiders and CryptoUnicorns migrate natively to the Polygon blockchain thanks to sub-cent fees and fast accuracy.
This ultimately means that if you want to play blockchain games, Polygon is again your best bet.
Polygon or Ethereum?
Polygon and Ethereum are different but complementary blockchain projects, each meeting specific needs in the decentralized ecosystem. While Ethereum focuses on providing a platform for dApps, smart contracts and digital assets, Polygon offers faster and cheaper transactions by addressing Ethereum’s scalability issues.
Both networks support DeFi, NFTs, and GameFi, but Polygon dwarfs Ethereum for users looking for smaller capitals and lower transaction fees. As a result, these two networks together form a strong synergy that supports the growth and success of the decentralized space.
