Polkadot and Polygon are two of the top crypto blockchains in the world. They are both proof-of-stake (PoS) networks that rely on stakers to validate transactions and keep the network secure.
In this, there are several similarities between the two networks. However, there are also many differences between the two that you should know about. In this guide, we explore the differences to help you appreciate them more.
What is Polygon?
Polygon is a top PoS blockchain network created as a layer 2 network for the Ethereum blockchain. It helps to improve the speed and efficiency of Ethereum, supporting Ethereum-based projects.
Through Polygon, the cost of transactions on Ethereum are also greatly reduced. However, the project still enjoys the security, interoperability, and structural benefits of the Ethereum blockchain.
The native token for the network, MATIC is an ERC-20 token used to pay network fees as well as to secure the Polygon network through staging. It is also used as a governance token that empowers its holders to make decisions concerning the future of the project.
Polygon was first created in 2017 as Matic Network. It later changed its name to Polygon after a successful initial coin offering in 2020, and has since retained the name. However, several changes have occurred on the network over the years.
These changes include the creation of Polygon Labs, as the company behind blockchain development and Polygon Foundation which provides support in research, development, and blockchain education.
As a network that uses PoS consensus, Polygon relies on validators who stake their MATIC to secure the network. This gives every holder of the token an opportunity to stake as well and earn rewards.
Polygon Pros and Cons
Polygon has many advantages as a Layer 2 network that supports Ethereum, the largest PoS network in the crypto space. However, this doesn’t mean that it is without weakness. The following are the Pros and Cons of the network.
Pros
- It is fast, efficient and low-cost to use. This is the reason it is used as Layer 2 for Ethereum.
- Polygon facilitates interoperability, which is the ability of blockchains to share data.
Cons
- It is not an autonomous network since it runs on Ethereum, which means it can collapse should anything serious go wrong with Ethereum.
- MATIC has limited use cases as it is used only to run the Polygon network.
What is Polkadot?
Polkadot is a Layer 0 network that is used to build interoperable chains. This means it is much bigger than Polygon. The network seeks to break the barriers between blockchains to allow for transfer of information between them.
The network uses a PoS consensus, just like Polygon. Its native token, DOT is used to pay for network fees and to secure the network through staking by validators. It is also a governance token that is used to vote for new developments on the network.
With Polkadot, even very different blockchain networks can interact with each other through the use of parachains. This is what sets Polkadot apart. Parachains are specialized blockchains that have their own functionality and tokens.
The parachains also serve as the governance layer of the network and are a management mechanism, connected by the relay chain which is responsible for shared network security, consensus, and interoperability.
Pros and Cons of Polkadot
Like Polygon, Polkadot has both pros and cons, some of which are as follows.
Pros
- It brings about scalability and interoperability.
- It has increased efficiency due to parallel processing.
- Enjoys high security through a shared security model.
Cons
- It can be complicated for new users because of its complex structure.
- Requires a lot of investment for security
- The network has to keep growing for its potentials to be realized.
Final Thoughts
These are just the basic differences between Polygon and Polkadot. There are a lot more details to them, but this is enough information if you simply wish to know the difference between the two.
