Polygon(POL) vs Polkadot (DOT): Explore the Web3 Frontiers

In the quest for achieving scalability, interoperability, and seamless user experiences has led to the emergence of diverse blockchain ecosystems. Two prominent players in this space, Polygon and Polkadot, have been gaining significant attention for their unique approaches to addressing traditional blockchains’ challenges. 

As we venture deeper into the era of Web3, where decentralization is a key tenet, understanding the nuances of blockchain networks is crucial for both enthusiasts and newcomers alike. In this blog, we embark on a journey to unravel the intricacies of Polygon and Polkadot—two platforms that have been making waves with their innovative solutions.

What is Polygon?

Formerly known as MATIC Network, Polygon 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 blockchains. It offers developers a set of tools to build ultra-scalable and high-performance blockchains and decentralized applications (DApps).

The main aim of the Polygon (POL ) network is to help enable developers of the multichain Ethereum ecosystem. Polygon POL works towards helping in effectively transforming Ethereum into a full-fledged multi-chain system which is also known as the Internet of Blockchains. 

Staying true to their commitment, Polygon introduced their Polygon Ecosystem token, POL, which is set to bring together all the innovations that Polygon had been working on. POL, an advanced token, powers an extensive ecosystem of Layer 2 chains through a native re-staking protocol. This allows POL holders to validate multiple chains and assume diverse roles, including sequencing, ZK proof generation, and participation in data availability committees. The POL upgrade not only introduces these features but also paves the way for key milestones in the Polygon 2.0 roadmap, including a new staking layer, the shift of Polygon PoS to zkRollup, and the implementation of a sophisticated ZK-powered interoperability and shared liquidity protocol for all Layer 2 solutions.

Read More: Ethereum vs Polygon vs Solana

Key Features of Polygon (POL ):

• Polygon 2.0 Evolution: Aligning with Polygon 2.0 specifications, Polygon is undergoing a transformative process to integrate zero-knowledge technology, positioning itself as a comprehensive scaling solution for the Ethereum blockchain.
• Proof-of-Stake to ZK Validium Layer 2: This evolution includes reconfiguring the Polygon Proof-of-Stake (PoS) chain into a ZK validium Layer 2 network specifically designed for the Ethereum blockchain, enhancing its scalability and efficiency.
• Supernet Architecture for ZK Layer 2 Networks: A supernet architecture is under construction to support a hub of ZK Layer 2 networks. These networks operate cohesively within an ecosystem that emphasizes efficient interoperability, contributing to a seamless user experience.
• Token Upgrade: As part of this comprehensive upgrade, the POL token is set to transition into the enhanced POL token. This upgraded token not only reflects the expanded ecosystem but also brings significantly improved utility. Additionally, it introduces new features such as restaking, enhancing the overall functionality of the token.

5 Benefits of Polygon 2.0 Token

POL introduces several key advantages for the Polygon ecosystem.

• Enhanced Security: POL heightens security in the Polygon ecosystem through a decentralized pool of Proof-of-Stake (PoS) validators, enhancing resilience and impartiality across all chains. Validators are incentivized to secure multiple chains concurrently.
• Unlimited Scalability: POL facilitates exponential expansion in the Polygon ecosystem, enabling widespread adoption. The validator pool scales seamlessly to accommodate thousands of Polygon chains, maintaining overall network security.
• Sustained Support: In recognition of the Polygon ecosystem’s early stages, POL introduces a sustainable, in-protocol mechanism for ongoing support. This ensures the longevity and robustness of activities as the ecosystem evolves.
• Frictionless Operation: POL streamlines operations by eliminating common frictions found in many blockchain protocols. Users and developers experience a smooth process without the need to hold, stake, or consume native tokens.
• Community Governance: Polygon emphasizes community governance with POL granting governance rights. This inclusion in governance frameworks reinforces Polygon’s community-driven nature, empowering users in the decision-making processes and evolution of the ecosystem.

Latest Polygon News:

• Polygon handled an impressive 16 million+ transactions earlier this week and the POL founder Sandeep Nailwal commented it has been possible due to the changes that the PoS is bringing in.

Yesterday, @0xPolygon PoS handled 16+ million transactions, and the network didn’t even blink.

At its peak, PoS had a throughput of 255 tps— thats around 2-3 times of the entire Eth ecosystem combined. Total transaction fees generated by the Validators is around 1mn in a single… pic.twitter.com/WEvuADktrf

— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) November 17, 2023

• Post the POL upgrade announcement, Polygon’s MidemVM is also making a noise for it being a ZK-friendly hash function.

For proof generation, MidenVM uses the RPO hash function. Though traditional hash functions like BLAKE3 are very fast, they are not optimal for use inside zero-knowledge proof systems. For efficient recursive proof generation, you need a ZK-friendly hash function.

But why use… pic.twitter.com/gEG3k1oSap

— Polygon (@0xPolygon) November 3, 2023

What is Polkadot?

The other prominent layer-two Ethereum blockchain token, Polkadot; is a shrading multichain protocol connecting and securing blockchain networks and facilitating the transfer of data and other assets across chains. This helps the data to become interoperable. The foundation for decentralized internet for blockchains which we also call the Web3 was laid out by Polkadot. 

Polkadot aims to address the scalability, security, and governance challenges faced by existing blockchains. The platform introduces a unique “relay chain” that connects multiple specialized blockchains, known as parachains, enabling them to operate in tandem. This interoperability fosters a more scalable and adaptable ecosystem where various decentralized applications and networks can communicate and share information seamlessly. Polkadot’s consensus mechanism, Nominated Proof-of-Stake (NPoS), enhances security and scalability while allowing token holders to participate in network governance.

Polkadot is also capable of connecting private and public chains, oracles, and permissionless networks, thereby allowing these technologies to share information in a trustless fashion through its relay chain. In 2021, Polkadot also conducted Parachain auctions followed by an un-permission candle auction system. This approach positions Polkadot as a robust foundation for the development of a decentralized internet, often referred to as Web3, by providing a flexible framework for diverse blockchain applications and use cases.

Key features of Polkadot (DOT):

• Interoperability: Polkadot is designed to enable interoperability between different blockchains, allowing them to seamlessly connect and share information.
• Nominated Proof-of-Stake (NPoS): Polkadot’s consensus mechanism involves token holders who can nominate validators, enhancing security and decentralization in the network.
• Decentralized Governance: Polkadot incorporates a decentralized governance model, allowing token holders to participate in decision-making processes and the evolution of the platform.
• Cross-Chain Communication: The relay chain facilitates communication and the transfer of assets between different parachains, fostering a more connected and collaborative blockchain ecosystem.

Additional Read: Solana vs Polkadot

Latest News on Polkadot

• Polkadot ecosystem is growing on adding new parachains, as the DOT price also sees an uptick since ‘Uptober’

The #Polkadot and #Kusama ecosystems are growing impressively with great news on a daily basis 🗞️#PolkadotInsider is pleased to bring you the recap of highlight events in the @Polkadot and @kusamanetwork ecosystems in the last 72hrs 📰

Check it out 👇🧵#DOT #KSM pic.twitter.com/7o6BzdLHEE

— Polkadot Insider (@PolkadotInsider) November 18, 2023

• The DOT has launched a Decentralized progmram for the Web3 community, backed by $20 million and 5 million DOT throughout 2024, equivalent to over $45 million.

🔹 @Web3Foundation has announced the Decentralized Futures program
🔹 The next Polkadot parachain auction
🔹 Polkadot referenda & treasury updates, the latest Kusama news, and more…

Check out today’s #PolkadotDigest 👇 https://t.co/r7157wlpAd

— Polkadot (@Polkadot) November 16, 2023

Polygon vs Polkadot: Comparative Analysis

Coin Name	Polygon	Polkadot
Launch Date	2017	2017
Founder	Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun	Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.
Blockchain Protocol	Ethereum Blockchain	Polkadot Blockchain
Native Token	POL	DOT
Market Cap*	$47,379,274	$6,504,587,055
Token Type	Native	Native
Circulating Supply*	59,591,817 POL	1,255,802,341 DOT
Max Supply*	10,000,000,000	NA
Consensus Method	Proof of Stake (PoS)	Proof of Stake

Pros and Cons of Polygon vs Polkadot

Pros

Polygon	Polkadot
The placement of the validation system makes Polygon more secure.	Each chain built within Polkadot uses Parity Technologies Substrate modular framework that allows developers to choose from components that suit their application-specific chain best.
The Polygon blockchain is built to solve the scalability issue and can process upto 72,000 transactions per second.	The modular framework of Relay Chain offers developers the flexibility to select specific components that best suits the application-specific chain.
The experience of the POL blockchain is similar to that of Ethereum.

Cons

Polygon	Polkadot
The development happening to bring forth ETH 2.0 might solve the issues that are currently being taken care of by POL .	The DOT ecosystem has been hacked and drained of a lot of funds before being stopped

DOT vs POL Technical Analysis

The well appreciative advances that DOT and POL had made in 2023, saw the tokens rise quite the curve. However, currently both DOT and POL are trending down, the communities are expected to push through and probably enter 2024 with POL price reaching its $1 mark and DOT price breaking from $5 level to attempt reaching $5.5 by December end. 

With POL coming to the picture, it is very likely that the surge in price to reach the $1 mark may be achieved within the month of December. 

Polygon Price Prediction

Following the spike early today morning, Polygon (POL) price dropped and is currently trading at around $0.79 – with a current market cap of $47 million as of writing. The price had shown a consistent upward trajectory since the announcement of POL, however the MA shows POL price to keep aiming to reach $1 mark within Decemeber. The current 8% drop in its value is anticipated as a bear run till the bull picks up the pca and aims to reach $1.

Additional Read: Polygon Price Prediction

Polkadot Price Prediction

Polkadot price is trading above $5 at the time of writing and it has failed to keep up the upward journey that it had begun earlier in 2023 to reach a double digit value. The market sentiment is expected to remain bearish until it drops to the previous value of $4.5. However, this drop in ita value is expected to bounce back and reach $5 again to probably aim a $5.2 – $5.5 by the beginning of January 2024.

Additional Read: Polkadot Price Prediction

Should You Buy Polygon or Polkadot?

While anyone investing in any of the crypto tokens should have thorough research done, as per their preferences, it is also important to know a few things that sets DOT and POL apart. While DOT runs on its own blockchain, POL is build on the vast Ethereum blockchain, which is getting an upgrade of its own. Looking back, while Polkadot has had break-ins, its unique Relay chain makes it a perfect blockchain for many crypto enthusiasts. On the other hand, Polygon (POL ) with its EPI-1559 and London Hard Fork paving the way has a lot of potential for the evolved crypto world, that is to come. 

Now with the POL token set to bring together all of Polygon’s usages, the comparison of POL vs DOT might get an interesting turn. As new projects are being developed in partnership with POL, the DOT ecosystem has a lot of parachain projects sighing up.

Having said that, conducting your own research before investing in any coin is imperative. Do not fall for social media-led discussions before diving into investing and make sure to do your research.

How to Invest in Polkadot and 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. 

1. Sign up on CoinDCX Bitcoin App
2. Link your bank details
3. Buy Polygon (POL) or Buy Polkadot (DOT)