If someone asked you the differences between Polygon (MATIC) and Polkadot (DOT), what would you say to them? It appears as if these networks have many similarities when viewed from a distance. For example, they both are developer-centric multilayered networks that support the latest DeFi features available. However, when you pull out the magnifying glass, there are some distinct differences that emerge. Here’s everything you need to know about Polygon and Polkadot.
What is Polygon?
Polygon originally launched as MATIC before rebranding. Polygon differs from other protocols because of its core functionality, which is to connect the growing number of Ethereum-based blockchains. The network wants to see this massive sector enjoy more interoperability and communicate freely.
The reason for this desire is simple – this strategy would reduce the costs of creating new Dapps by enabling developers to leverage other network’s functionalities. Polygon’s developers want to help organize this massive sector of the market. The protocol envisions a future where it operates as the “Internet of Ethereum blockchains.”
Developers will be able to finally have this enormous ecosystem organized. Then, they can leverage the best aspects of other protocols to improve performance and the user experience. In this way, Polygon seeks to drive adoption and create a more useful blockchain economy for everyone.
What is Polkadot?
Polkadot is a multilayered third-generation smart contract programmable blockchain. The protocol enables developers and businesses to create sub-blockchains that have unique features including tokens, consensus, and governance systems. This strategy has helped the network to become one of the most recognized smart contract programmable blockchains in the market.
Since its launch in 2018, Polkadot has seen considerable adoption. The protocol has gained favor with DeFi users due to its staking options and with developers due to its ability to create using multiple languages. Polkadot developers can program in Go and C++.
What Problems was Polygon Built to Alleviate?
Like most smart contract programmable networks today, Polygon was intended to provide Ethereum developers with better options. However, unlike the competition, Polygon wants to keep these developers within the Ethereum ecosystem. As such, the network provides full Ethereum compatibility. This strategy removes the technical barriers for developers.
Polygon’s infrastructure improves security through the integration of modular security options. Developers can introduce these modules into their network to save time and effort. Additionally, the protocol supports the full suite of Ethereum Leverage tools, languages, and standards.
Polygon tackles another major concern for users, security. The network operates as an open-source alternative that has been vetted by multiple third-party organizations and the Ethereum community. The system is upgradable to meet future security threats and leverage a community governance system to ensure it remains community lead.
What Problems was Polkadot Built to Alleviate?
Polkadot solves some of the biggest issues encountered by crypto users today. It streamlines the creation of purpose-built blockchains. This strategy makes it easier for developers and businesses to integrate these systems into their existing protocols. Polkadot provides lower fees than most competitors and has a growing Dapp ecosystem that places it amongst the top options for developers.
Polkadot seeks to increase the level of interoperability within the crypto market. While Polygon focuses on Ethereum networks, Polkadot takes a broader approach. The network enables completely sovereign protocols with different standards to communicate. This strategy helps to drive innovation across the market.
Polkadot is incredibly scalable. The network offers users more performance and reduced fees compared to earlier networks like Ethereum. The lower costs extend to gas fees as well, which has resulted in a booming Dapp infrastructure. Polkadot continues to see new protocols launch monthly which has only helped to drive up awareness of the platform.
How Does Polygon Work?
Polygon leverages chain validators to remain secure. The protocol leverages multiple layers to provide users with advanced DeFi capabilities. The platform has an execution layer that interprets and completes transactions. This layer is also responsible for the creation of new blocks.
The Execution environment functions as a real-time pluggable virtual machine implementation. This feature improves Dapp creation. Then, the Execution logic layer is capable of deciphering Ethereum smart contracts and executing them. It also states the transition function of sub-networks.
Notably, Polygon supports two main types of blockchains. The first type is called standalone blockchains. These networks have unique features and leverage internal consensus systems. These networks can be flexible and include new tokens and consensus. For example, the Reliant Network leverages Polygon’s security to reduce costs and programming time while providing top-notch security.
How Does Polkadot Work?
Polkadot provides developers access to two distinct types of networks, Parachains and Parathreads. Parachains are custom-built blockchains that serve a particular service. They are ideal for enterprise clientele. The second type of network supported is called Parathreads. These networks rely less on the blockchain and can be set up using a pay-as-you-go model to reduce costs.
Polkadot enables these networks to communicate in a seamless manner. Additionally, the network bridges expand this functionality to other unrelated blockchains. This strategy has helped Polkadot to gain a major following in the market. Today, the Polkadot Dapp ecosystem is one of the fastest growing.
Users can stake the DOT token to secure the network. They earn returns in the form of DOT for their efforts. Staking is a popular option in the DeFi market today for many reasons. Primarily, its gained popularity due to the fact that it takes the guesswork out of securing long-term passive returns from your holdings.
How to Buy Polygon (MATIC) and Polkadot (DOT)
Currently, Polygon (MATIC) and Polkadot (DOT) are each available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from purchasing most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Polygon Vs. Polkadot – Brothers in Arms
After reviewing the key differences between Polygon vs Polkadot, it’s easy to see that both networks have their respective advantages. Polygon is well positioned as Ethereum remains the dominant network in the market. However, Polkadot has taken a bite out of the Ethereum ecosystem thanks to its lower fees and greater functionality. Notably, both of these projects are a smart addition to your portfolio for 2022.
To learn more, make sure to visit our Investing in Polygon and Investing in Polkadot guides.