Polygon vs Ethereum: A Comparison

Polygon vs Ethereum

By Keval Sayar

Updated April 18, 2023 • 10 min read

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Summary

Polygon (formerly Matic Network) is a Layer-2 scaling solution with payment and lending solutions, atomic swaps, and improved dApp and DEX performance.

Contents

• Ethereum Blockchain: Background
• Tier-2 Scaling Solutions
• Polygon Blockchain: Background
• Polygon vs Ethereum
• Features, Pros and Cons of Polygon and Ethereum

Ethereum Blockchain: Background

Ethereum scales by creating a global network of computers that connects users to the marketplace of dApps, providing unprecedented functionalities, security, and control. Thanks to its combination of features such as smart contracts, Ethereum is used for many new applications in financial markets, web browsing, gaming, advertising, self-regulation, and supply chain management.

Tier-2 Scaling Solutions

Tier-2 refers to a network or technology that runs on top of the underlying blockchain protocol to increase its scalability and efficiency. Such a solution removes some of the transactional burden to an adjacent system architecture, making the underlying blockchain less congested and more scalable.

Polygon Blockchain: Background

Polygon is a Layer-2 scaling solution created to help bring mass adoption to the Ethereum platform. It caters to the diverse needs of developers by providing tools to create scalable decentralized applications (dApps) that prioritize performance, user experience (UX), and security. Polygon operates through Commit chains, which are transaction networks that operate adjacent to the main blockchain (Ethereum). Commit chains bundle together batches of transactions and confirm them before returning data to the main chain. Polygon currently uses Commit Chain connectivity to improve transaction times and will eventually utilize other Layer-2 scaling mechanisms like Optimistic Rollups.

Polygon vs Ethereum

1. Consensus mechanisms and block confirmation times

   Ethereum follows the Proof of Work (PoW) consensus mechanism, requiring high processing power for security but limiting participation. Polygon utilizes the Proof of Stake (PoS) consensus mechanism, allowing users to earn rewards in the form of Matic tokens and achieving faster consensus.

2. Transaction Speed

   Ethereum has a transaction speed of 27-30 TPS, while Polygon offers a much faster transaction speed of 65,000 TPS due to its hybrid environment.

3. Architecture

   Ethereum has a stateful architecture suitable for dApp development, but it is slower compared to stateless networks. Polygon aims for a borderless society and economy, providing efficient and faster transactions.

4. Scalability

   Ethereum has a transaction speed of 15 TPS, while Polygon can process 65,000 TPS, making it more scalable.

5. Transaction fees & gas prices

   As Ethereum's popularity has grown, so have transaction gas prices. Polygon has lower gas prices and transaction fees due to its PoS consensus algorithm, reducing network energy consumption and costs.

Features, Pros and Cons of Polygon and Ethereum

1. Polygon

Features

• Interoperability of elements based on the existing architecture of Ethereum.
• Compatibility with Ethereum.
• Transaction speeds up to 65,000 TPS.
• Multi-chain architecture for better scalability.

Pros

• Secure thanks to the validation system.
• Scales with increasing transaction volume.
• Provides a similar experience to Ethereum.

Cons

• Might not be required as a Tier-2 solution with developments in Ethereum.

2. Ethereum

Features

• Development of smart contracts.
• Enables democratic decision-making through DAOs.
• Uses the EVM to compile contracts and interact with them.

Pros

• Feature-rich and efficient blockchain development platform.
• Minimal downtime and highly efficient.
• Stateful architecture suitable for dApps development.

Cons

• Requires significant processing power, limiting miner involvement.
• Performance may be affected due to resource requirements.
• Lower transaction processing speed compared to Polygon.