The most talked about blockchain technology has seen a steady rise in adoption over the last couple of years. While that has been widely explorative technology, another sub-part of Blockchain; i.e. DeFi also captured the attention of the developers. That being said, in today’s dive into crypto tokens, we will be comparing the two of the most prominent second layer Ethereum Blockchain tokens; i.e. Polygon vs Polkadot!
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 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. Polygon MATIC works towards helping in effectively transforming Ethereum into a full-fledged multi-chain system which is also 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 easily exchange value and information, 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.
Additional Read: Polygon Whitepaper Summary
Polygon’s zkEVM is one of Polygon’s scaling solutions developed to make dApps more scalable. A zk roll up means Zero Knowledge roll up sends transactions in batches to Ethereum for approving it on the main chain. Validity proof is given by Ethereum after the zk roll up is deployed with cryptographic proof. Polygon zkEVM is Ethereum equivalent which means its byte code can be run on layer 1 as well as layer 2.
zkEVM uses a unique approach of batching transactions on Polygon and relaying it to Ethereum for proof of validation. Bulk transactions are processed through zkEVM – zero knowledge Ethereum Virtual Machine equivalent using encrypted bytecode used in EVMs. This reduces the transaction fee without compromising on security of transactions.
Ethereum Merge Impact on Polygon Ecosystem
The Merge is the most awaited event in the entire crypto space which is believed to turn the tables for many altcoins, Polygon is one among them. It is the Layer-2 scaling solution, mainly a sidechain running alongside Ethereum and hence the transition may make the two networks alike, working on the same consensus mechanism, Proof-of-Stake(PoS)
The Polygon Network in the recent blog highlighted the importance of the upcoming merger that may further impact the MATIC price. According to the blog, the Ethereum Merge may not reduce the gas fees or increase the speed at once as it is dependent on Polygon & the other Layer-2 solutions.
Polygon has been closely working for a more efficient & scalable Ethereum Network for a pretty long time. Therefore, the upcoming Merger may turn the tables for the entire ecosystem that runs along the ETH chain.
Unique Features of Polygon (MATIC) crypto are:
- 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.
Recent Developments in Polygon
- GK8, an institutional-grade asset custody platform that offers DeFi, NFTs and crypto marketplace solutions, has announced its integration with Polygon blockchain – the fastest growing layer 2 blockchain on the Ethereum network.
GK8 customers can now seamlessly manage and monetize their Polygon and $MATIC holdings directly from GK8’s digital asset custody solution.
— Polygon – MATIC 💜 (@0xPolygon) August 17, 2022
- Catheon Gaming announced their initiative with Polygon Studios to launch a preferred blockchain gaming partnership. The partnership’s agenda is to leverage Catheon’s powerful blockchain gaming infrastructure and Polygon’s intelligent solutions to help developers build dApps or decentralized applications that require low transaction costs without having to compromise on security.
We are excited to announce a strategic blockchain gaming partnership with @CatheonGaming, driving forward a shared vision of bringing quality entertainment and gaming to the blockchain and elevating the user experience front and center.👇https://t.co/yEfMsNaBEV
— Polygon Studios (@polygonstudios) August 18, 2022
What is Polkadot?
The other prominent layer two Ethereum blockchain token; Polkadot; is a shrading multichain protocol connecting and securing blockchain networks along with 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 is also called layer-0 metaprotocol since it describes a format of network for layer 1 blockchains also called parachains (parallel chains). Polkadot is also capable of effortlessly updating its code with the help of on-chain governance according to the votes of the community. Polkadot also serves as the foundation for the decentralized web which shall eventually be controlled by the users and shall simplify the creation of new services, applications, and institutions.
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.
Additional Read: Polkadot Whitepaper Summary
Ethereum Merge Impact on Polkadot
Both Polkadot and Ethereum 2.0 are sharded blockchain protocols. This means that they provide scalability by executing transactions in separate shards and provide a protocol to send messages between shards. Being a network that runs on its own blockchain, Polkadot (DOT) may not have any fundamental impact by the Ethereum Merge. However, the changes that the Merge will bring onto the Ethereum blockchain is said to result in making ETH even more efficient. Prices of the two crypto assets is a segment of interest for traders. To keep a tab on the prices of DOT and ETH; click here.
Latest News on Polkadot
- Polkadot (DOT) prices were able to climb above the $7 mark due to steady demand from crypto investors. However, the buyers quickly turned into sellers as fear gripped the market yet again. According to AMB Crypto, Polkadot has traded within the $7.7 and $6.9 area for most of the past two weeks. The Volumpe Profile Visible Range tool showed the Point of Control to lie at $7.25.
Unique features of Polkadot (DOT) crypto are:
- Polkadot can process several transactions parallelly. This improves the scalability of the network.
- The Polkadot network is highly flexible and adaptive allowing sharing of information as well as functionality between users.
- Polkadot can automatically upgrade its codes or remove bugs.
Polygon vs Polkadot: Comparative Analysis
|Founder||Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun||Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.|
|Blockchain Protocol||Ethereum Blockchain||Polkadot Blockchain|
|Circulating Supply*||8.68B MATIC||1.11B DOT|
|Consensus Method||Plasma Framework + Proof of Stake (PoS)||Proof of Stake|
Pros and Cons of Polygon vs 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 MATIC blockchain is similar to that of Ethereum.|
|The development happening to bring forth ETH2.0 might solve the issues that are currently being taken care of by MATIC.||The DOT ecosystem has been hacked and drained of a lot of funds before being stopped|
Polkadot vs Polygon Price Prediction
How high will Polygon (MATIC) price go in 2022?
Following the spike early today morning, Polygon (MATIC) price gained about 3.39% in the past 24 hours and is currently trading at around $0.89 – with a current market cap of $7.83 billion as of writing. The crypto asset has the potential to keep up the surge as huge buying pressure has mounted up, the possibilities of huge corrections are also fewer. Therefore, the MATIC price is expected to continue coiling up as the bulls regain their power and eventually uplift the price above $7.
Additional Read: Polygon Price Prediction
How high will Polkadot (DOT) price go in 2022?
Polkadot price is trading above $7 & has maintained firmly through the month of August and is currently hovering at around the same levels it traded during the beginning of the month. Despite a huge drop, the price appears to be extremely bullish as the asset held the lower support firmly and rebounded with extreme buying pressure.
The upswing could elevate the price beyond 2-digit levels initially & if the asset surpasses the crucial resistance at $10.48, the asset may close the September trade above $11.80.
Additional Read: Polkadot Price Prediction
DOT vs MATIC Technical Analysis
Polygon (MATIC)Technical Analysis
MATIC price has shown a strong recovery on the charts ever since the market hit its lows between June and July 2022. Since its lows, MATIC has rallied over 250%, going all the way from $0.306 to $1.05 at its high in the middle of August. Since then MATIC prices have fallen a little bit but its bullish prospects haven’t been hurt too much yet. MATIC price is still above the trendline support zone (marked in blue) and marginally below the 50-DMA (marked in cyan).
On the upside, the upper trendline resistance and the 200-DMA are coinciding at $1.02 and which isn’t too far away. With the RSI at 50 as of writing this, it can be expected that a recovery in broader sentiments can push MATIC up and make it one of the leading gainers in amongst the top few cryptos.
Polkadot DOT Technical Analysis
DOT price is currently stuck within a descending triangle pattern and is pretty close to the bottom trendline support. If DOT prices aren’t able to sustain above it, we may see a freefall beneath that level. On the flip side, if we see positive action and a breakout from the descending triangle pattern on the chart, we could see some relief from the bears trying to push the prices down.
DOT price are quite close to the 50-DMA and its upper trendline resistance too (diagonal one). If we see a breakout over that, DOT may give healthy returns. However, the RSI is at 40 as of writing, which indicates poor buying strength amongst the buyers so bullish action can’t be expected too soon either.
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 MATIC apart. While DOT runs on its own blockchain, MATIC 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 (MATIC) 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.
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.
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