If looked back a couple of years, the massive impact crypto has had, will not have been deemed possible. With every passing day, blockchain technology is proving to be the Gen Z of what the Internet was when it was first introduced to the world. Blockchain technology has made its mark out of the various technologies worked upon today. Why so? It is because Blockchain has been the ‘talk of the town’ at this moment. It has undoubtedly entered various segments of today’s world and has helped shape the decentralized finance sector. With blockchain opening doors to many opportunities for various applications, many new genres of technology were introduced. From crypto assets to NFTs to DeFi applications, blockchain is helping the world shape the new future. With an increasing demand for blockchain technology, newer applications are being rolled out at a faster pace.
The applications that are being worked upon to provide various solutions to different use cases are being built upon different blockchain protocols available in the market. Out of the many protocols available, some of the most promising ones are Ethereum, Solana, and Polygon. All of these three blockchain technologies are the core of this deep dive. Here we will not only be looking into the three mentioned blockchain protocols but will also take a comparative analysis of them.
- Ethereum is the more transparent blockchain that pioneered smart contracts and DApps.
- Solana, the Ethereum killer is all set to take over Ethereum? It has a transaction speed of up to 65,000 TPS.
- Polygon is the fastest of all three blockchain protocols with up to 75,000 TPS!
What is Ethereum?
Ethereum is said to be one of the most diverse blockchain protocols with a market cap of over 230 billion as of writing this article. It is a decentralized open-source blockchain system that has its own crypto, often termed as a native crypto, Ether (ETH). Ethereum has been well known for its smart contract functionalities that open the doors for creation of new web3 applications, cryptos, DeFi projects and more.
It was launched back in 2013, when Vitalik Buterin, the founder of Ethereum crypto, described its working and applications on a white paper along with his co-founder and secured funding for the same in a public crowd sale of 2014. The Ethereum blockchain officially became live on July 30, 2015 and since then, the community and developers are working to make this disruptive network even more robust and scalable. There have been several upgrades implemented on Ethereum since its launch, with the most recent being the Ethereum Shanghai Capella Upgrade which went live on April 12, 2023, after London Hard Fork, the Merge upgrade that shifted Ethereum from its Proof of Work consensus mechanism to the Proof of Stake consensus mechanism.
Ethereum Shanghai Update:
The Shanghai Capella Upgrade has been one of the most highly anticipated events since the Ethereum Merge went live back in September 15, 2023. The reason being- Shapella Upgrade implemented the EIP-4895, which has enabled the un-staking of ETH tokens for the first time since December 2020, back when the PoS-based Beacon Chain was launched. Previously, users needed to stake 32 ETH or more which then were locked for an indefinite period to become a validator node and contribute to the network’s security, but with this upgrade, they can now withdraw their locked assets from deposit smart contracts. The new upgrade has also made some improvements to reduce gas fees of transactions and it is set to bring the Ethereum network one step closer to become a fully functional and scalable Proof of Stake (PoS) blockchain network. Following this one, Ethereum is now prepping for a new Cancun Deneb (Decun) upgrade that aims to bring more scalability, security and new use cases to the Ethereum network- it is expected to take place in the second half of this year.
Hi Shapella 👋
Withdrawals have appeared! pic.twitter.com/POqeZwkZJ4
— Etherscan (@etherscan) April 12, 2023
Unique Features of Ethereum
Looking at what Ethereum is, calls for what makes it unique to the crypto space. Here are some of the most unique features of ETH.
- Ethereum made the development of smart contracts possible. ETH is the pioneer of the smart contract concept along with being the reason NFT could be introduced to the Crypto space.
- Ethereum blockchain is able to host various other crypto tokens using its ERC-20 standard. Other variations of ETH are ERC-721, ERC-1155, and ERC-1238.
- Ethereum’s London Hard Fork and Shanghai Cappella update was implemented to reduce gas transaction fees and enhance scalability.
Additional Read: Ethereum vs Tron
What is Solana?
One of the most talked about crypto tokens that have been making the best use of blockchain technology to provide Decentralized solutions to the crypto space since 2017. Often termed as the Ethereum Killer, SOL provides faster transactions than Ethereum and has been facilitating the creation of DApps in the crypto ecosystem. Solana aims to improve scalability via its Proof of History consensus mechanism along with the blockchain’s underlying Proof of Stake mechanism.
The Solana protocol is designed in such a way that it enables the creation of a decentralized app also known as DApp via deploying smart contracts onto its blockchain. Solana aims to improve scalability by presenting a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
Because of its speed and low-cost model, it is possible to verify payments sent on the Solana chain within seconds and costs an average of $0.00025. This also functions as the USP for Solana, as most of the issues surrounding crypto involve transaction fees and speed. Solana’s innovative hybrid consensus model makes it possible for both small-time traders and institutional traders to enjoy the platform equally. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.
- Solana has recently surpassed Ethereum and Polygon in numbers of NFT transactions per day. It has witnessed a massive surge with over 60k NFTs minted in the past month, per Messari data.
— Messari (@MessariCrypto) June 17, 2023
- Solana launched its v1.14 upgrade in May this year. This upgrade improves Solana’s overall network experience- making it even more efficient for the creation of dApps, projects and NFTs.
— Solana (@solana) May 30, 2023
Unique Features of Solana
Looking back, SOL has a nickname in the crypto world, i.e. Ethereum Killer due to its functionalities. However, what makes it unique are its features. They are:
- SOL’s consensus mechanism is known as PoH (Proof of History) which enables every node to have its own clock and take decisions without consulting each other.
- The Byzantine Fault Tolerance (BFT) algorithm of Solana makes sure that a particular node failure does not impact the working of the entire system.
- The Solana ecosystem enables multiple smart contracts to work at the same time with upto 65,000 transactions per second!
Read On: Aptos vs Solana
What is MATIC?
Polygon (formerly known as Matic Network) is a Layer 2 scaling solution for Ethereum scaling and infrastructure development. The project aims to create “Ethereum’s internet of blockchains”, by solving scalability issues of existing Ethereum blockchain and offers developers a set of tools to build ultra-scalable and high-performance blockchains and decentralized applications (DApps).
The main aim of the Polygon (MATIC) network is to help enable developers of the multichain Ethereum ecosystem. MATIC helps effectively transform Ethereum into a full-fledged multi-chain system known as the Internet of Blockchains. The multi-chain system that Polygon provides is of a similar nature to that of the other ones such as Polkadot, Cosmos, Avalanche, etc. The advantage of the Polygon multi-chain system is that it comes with the advantages of Ethereum’s security, vibrant ecosystem, and openness.
Polygon is also the only scaling solution that supports the Ethereum Virtual Machine (EVM), which allows different blockchains to exchange value and information easily, and eliminates the technological barriers that exist between most blockchains. Polygon blockchain can process up to 65,000 transactions per second, with a block confirmation that takes less than two seconds.
- There have been several major updates and releases on Polygon network- users can now advantage PancakeSwap to transfer tokens and swap them at low costs and high speed with Polygon’s zkEVM support.
Enhancing efficiency, reducing gas cost, and increasing network throughput ⚡️
— Polygon (Labs) (@0xPolygonLabs) June 30, 2023
- Polygon’s new architecture proposal is announced- this new architecture has 4 layer namely the Staking layer- where validator nodes stake assets to contribute, Intertop layer- which enables cross-chain transactions and communication within the ecosystem, the Execution layer- where transactions are validated and confirmed, and last the Proving layer- that defines machine state and proves transactions.
1/ Today, we are excited to propose the Polygon 2.0 architecture, designed to provide unlimited scalability and unified liquidity, thus transforming Polygon into the Value Layer of the Internet!
— Polygon (Labs) (@0xPolygonLabs) June 29, 2023
Unique Features of Polygon MATIC
Reasoning with how Polygon’s capability to enhance Ethereum’s multi-chain ecosystem makes it a unique crypto asset that can be described to have mixed qualities of both Ethereum and Solana, below are some of more such unique features that make MATIC such an amazing asset to look at.
- Polygon (MATIC) is a Layer 2 scaling solution for Ethereum scaling and infrastructure development.
- It is the only scaling solution that supports the Ethereum Virtual Machine (EVM).
- Polygon supports two types of chains – standalone and secure.
Read More: Polygon vs Arbitrum vs Optimism
Pros and Cons of Solana vs Ethereum vs Polygon
One of the major misconceptions that many novice traders often think regarding the crypto space is that the value of the asset is somehow related to the blockchain and how it performs. That is not the case. The value of the assets is completely different and in no way related to how the asset is performing in their blockchains. While you’re doing your research regarding the blockchain you will pick to make a DApp on, be assured that other than the tokenomics, the community of the assets, the use cases, and the roadmaps are the only criteria you will need to look out for.
While Ethereum started the trend within the blockchain platforms to create NFTs and smart contracts, it also opened doors for other crypto protocols to explore the sections and provide faster and better solutions. Similarly, how the well-known competitors of Ethereum, i.e. Solana and Polygon, were born. While Ethereum killer – Solana provides major competition to the ETH platform, Polygon is just a step behind. The SOL blockchain provides much faster transactions at a reduced cost when compared to Ethereum and Polygon. However, Polygon came up to provide faster transaction speeds. No matter how advanced Solana and Polygon are, Ethereum is still the most diverse and transparent landscape for creating decentralized applications.
Besides the solutions all three of the blockchains provide, there are a set of Pros and Cons that comes with it.
|The Ethereum blockchain emphasizes features and improvements, making it one of the best blockchain app development platforms.||The blockchain follows a stateless architecture, making it more open for developers to use according to their requirements.||The placement of the validation system makes Polygon more secure.|
|The Ethereum blockchain is one of the most stable and efficient platforms available.||Very high transactional speed. Can process upto 65,000 transactions per second.||The Polygon blockchain is built to solve the scalability issue and can process upto 72,000 transactions per second.|
|The architecture is suitable for developers to use and build various DApps.||SOL incorporates a high performance protocol, which helps the blockchain in its scalability||The experience of the MATIC blockchain is similar to that of Ethereum.|
|It is always in need of power, thus little involvement from miners is required.||The hardware support needed for the Solana blockchain is costlier than most.||The development to bring forth ETH2.0 might solve the issues currently being taken care of by MATIC.|
|The blockchain’s performance takes a toll due to high resource requirements.||SOL is not decentralized enough|
|Less transaction speed|
Ethereum vs Polygon vs Solana Comparative Analysis
|Founder||Vitalik Buterin and Gavin Wood||Anatoly Yakovenko and Greg Fitzgerald||Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun|
|Blockchain Protocol||Ethereum Blockchain||Solana Protocol||Ethereum Blockchain (ERC20 token)|
|Market Cap||$230 billion||$8 billion||$7 billion|
|Circulating Supply||120,219,083 ETH||400,892,658 SOL||9,319,469,069 MATIC|
|Consensus Method||Proof-of-stake (PoS)||Proof of History (PoH)||Plasma Framework + Proof-of-stake (PoS)|
|Architecture||Stateful architecture||Stateless architecture||Multichain architecture|
|Scalability||Limited Scalability||High-Performance protocol for scalability||Multichain solutions offer better scalability|
|Transaction Speed||13-15 TPS||65,000 TPS||72,000 TPS|
Should you Invest in/Difference Between Ethereum & Solana & Polygon
Looking at the details of the three projects, the overall sentiment might appear similar for Ethereum, Polygon and Solana. To set these blockchain protocols apart, let us discuss the major differences between the three protocols.
One of the most important factors that will be common for most of the decentralized blockchain protocols is having a consensus mechanism. The various consensus mechanisms available help in reaching an agreement on the present state of the networks. Ethereum and Polygon both use a consensus, based on Proof of Stake or PoS. Users get a chance to earn native tokens by staking and securing these networks. The consensus for Polygon can be achieved faster due to the combination of technologies offered by Polygon. Now taking a look at Solana, the consensus mechanism provides an efficient operation to cater to its faster transaction speed. SOL’s consensus mechanism uses an array of computations to identify an ideal verification method of the time gap between two events. The consensus used by Solana can be called a Hybrid form of consensus as it uses the best features of PoW, PoS, and PoH, which is Proof of History. The mix of various consensus allows for more flexibility in sorting transactions which helps SOL in reaching a total of 65,000 transactions per second.
One of the major differences between ETH, SOL, and MATIC is the transaction speed of the blockchain protocols. The speed of transactions not only differentiates the blockchains but also helps developers in choosing the best protocol they need for their usage. When it comes to comparing the TPS for these three, Ethereum needs to catch up. ETH can incorporate 13-15 transactions per second while Solana and Polygon enable upto 65,000 and 72,000 transactions per second, respectively!
The scalability of a blockchain is one of the most critical factors that the developer should look into before choosing a platform for the development of any blockchain application. The scalability factor helps show if the network is scalable enough to ensure the transaction is completed. With Ethereum, the transaction speed is 15 transactions per second, which is less than compared to Polygon or Solana. However, Polygon’s layer 2 scaling with multichain network support helps in resolving the scalability issue. Solana can process upto 65,000 transactions in a second, so scalability issues are almost nonexistent. With SOL or MATIC users can have access to faster transaction speeds, a better consensus model along with an efficient architecture.
Top Projects Built on Ethereum, Solana, & Polygon
- Some of the top projects built on Ethereum are Cryptokitty, crypto punks, OpenSea, Rarible, Nifty Gateway, and Decentraland.
- Projects that have been built based on the Solana protocol are Degenerate App AcademySolPunks, Sollamas, Solsea.
- Projects built on the Polygon blockchain are Plasma-Enabled Sidechain, PoS SportX, ZED RUN, Easy Fi, QuickSwap.
Polygon Price Analysis
- MATIC price showed strength in the beginning of year and recovered over 95% of its price, but it could not sustain the level for longer and started to drop.
- It has formed a death crossover in Mid may, dropping down to $0.488 level.
- But bulls have managed to diverge MATIC price from the oversold region and it might rise upto $1 if the market sentiment becomes positive.
Solana Price Analysis
- Like MATIC, SOL price also had a great start and rose by more than 150% in the first two months.
- SOL price has been trading in a close range with upper level at $25 and lower level at $19.1 since then, before it had a breakdown.
- SOL price has however strengthened and is currently trading above its 50-day moving average.
Ethereum Price Analysis
- ETH price has remained positive or bullish overall this year, it surged by more than 75% in Q1 of 2023 and reached a YTD high of 2137.45 amidst weak crypto markets.
- ETH price has been oscillating in a consolidated range for the past few weeks before it witnessed a breakdown to the level of $1650.
- However, ETH price has again recovered but there does not seem to be much strength in the market and it might experience some resistance at $2200.
Know More: Ethereum Price Prediction
Tips for Trading in Ethereum, Solana & Polygon
Trading on any crypto asset requires a thorough understanding and research of the investor. However, staying on top of what is happening in the community of the tokens is the key to keeping tabs on the tokens of choice. Below is the list of the official accounts of the Ethereum, Solana, and Polygon communities.
How to Invest in Solana, Ethereum, & Polygon
Investing in crypto is super simple, safe, and secured with the CoinDCX app. It doesn’t matter whether you want to invest in Polygon, Ethereum or Solana coin, we have got you covered. CoinDCX is India’s safest and simplest crypto investment app for your one-stop purchase of any crypto asset.
Here are the 3 simple steps to buy your first token with CoinDCX.
Ethereum consolidating, here’s when you can expect a rebound
Mastering risk management is key to thriving in crypto trading.