The advent of the internet way back in the 90s led to a new discovery of a new era which is now slowly being digitally transformed. Meanwhile, the invention of the blockchain & main cryptos has transformed payment mechanisms over time. Hence cryptos are been slowly accepted globally and have also been regulated as legal tender in many countries.
Earlier, Bitcoin & Ethereum were considered the top blockchains, but in recent times, many such chains have been deployed which are claimed to be more efficient than these chains. Some of them are Solana, Polkadot, Polygon, Arbitirum, Optimism, Cosmos, etc and many more which are offering very tough competition for the primitive chains.
Let’s have a look at 3 of such chains, Polygon, Arbitrum & Optimism to make out in what way these chains are better than the other popular blockchains and also among themselves.
Polygon is one of the best ‘2-layer’ or a ‘sidechain’ scaling solutions that work alongside the Ethereum network, enabling faster transactions at affordable costs. The chain works parallelly with the Ethereum network and to use the chain one can easily bridge their cryptos over to Polygon and interact with the wide range of Ethereum-based crypto apps.
The Polygon chain uses the Proof-of-Stake mechanism aiming to scale Ethereum with its abundance of sidechains which are intending to unclog with the main platform in an effective & cost-efficient manner. The chain presently carries out nearly 7000+ TPS in comparison with 15 TPS of that of Ethereum, while the average block processing time is around 2 seconds.
Read more: Polygon whitepaper summary
Arbitrum is a scaling solution that sits above the base layer of the Ethereum blockchain offering cheap & fast transactions. It is designed to enhance the Ethereum Smart contracts in terms of speed while adding additional privacy features. It uses a unique technique to make the transactions on Ethereum more scalable and inexpensive.
The chain uses a technology known as an Optimistic Rollup which interacts between the two chains. While the transaction processing will be completed at layer 2 and Arbitrum records the results in the main chain. The chain aims to drastically increase its working speed & efficiency with this process.
Similar to Arbitrum, Optimism is also a layer-2 scaling solution for Ethereum which helps to reduce the transaction fees & time on the Ethereum chain without sacrificing decentralization & security. It handles the transactions off the Ethereum chain while taking the advantage of its infrastructure.
Optimism communicates with Ethereum’s layer-1 chain which handles security, decentralization & data availability, while Optimism handles the layer-2 scaling solution. In short, Optimism reduces the load from Ethereum by removing the burden of the financial transactions which reduces the congestion from the network.
|It is more secure due to the validation system||It offers 100 times the throughput with only 2% of the fees||EVM equivalence focuses on going one-step ahead|
|It uses a joint system of PoS & Hemidall architecture which increases the scalability & power||As it is completely deentralized, the KYC requirement is eliminated||High secured data|
|The mutli-chain system allows Polygon to access & use the full power of Ethereum||A good ecosystem with powerful tools||Faster transactions with low costs|
|Polygon offers a similar experience to that of Ethereum||Higjh EVM compatibility|
|If Ethereum 2.0 is developed completely, Polygon’s existence may be challenged in the coming days||Does not have any native token||Long & costly withdrawals|
|It is ethereum dependant||The Arbitrum gas fees are different from the Ethereum gas fees, serving a different purpose||Potential incentive misalignment between network participants|
|There is high competition among the other scaling networks like Polkadot, Solana, etc||Underlying L1 censoring transactions|
|Lauch Date||2017||28 May 2021||December 2021|
|Founder||Sandeep Nailwal||Steven Goldfeder||Jinglan Wang|
|Blockchain Protocol||Polygon Chain working for Ethereum Mainnet||Arbitrum Chain working for Ethereum Mainnet||Optimism Chain working for Ethereum Mainnet|
|Market Cap||$7.89 billion||NA||$244.79 million|
|Circulating Supply||8.73 billion||NA||234.78 million|
|Max Supply||10 billion||NA||4.29 billion|
|Consensus Method||PoS||PoS||Optimistic Rollup|
|Architecture||Multi-layer Architecture||Arbi-turm Virtual Machine Architecture||Optimistic Architecture|
|Scalability||Layer-2 scaling solution||Layer-2 scaling solution||Layer-2 scaling solution|
|Transaction Speed||65000 TPS||40000 TPS||2000 to 2000 TPS|
Observing the fundamentals & the working mechanisms, all three blockchains appear to be equally important and secure. To have a deeper knowledge to choose the best among them, let us know the major differences between them
Ethereum which worked earlier on the Proof-of-Work mechanism has recently transited to the Proof-of-Stake consensus mechanism. Polygon also uses the same PoS mechanism, whereas both Arbiturm & Optimism use the Optimistic roll-ups.
The transaction speed of Ethereum was very low and hence the layer-2 solution chains addressed the issue. While Arbitrum can carry out nearly 40K TPS, Optimism 2K TPS, Polygon is the fastest among the 3 with nearly 65K TPS. As Polygon processes the highest transactions of all, the scalability issues remain highly negligible, having access to faster transactions.
Read more: Polygon MATIC Price Prediction
Read more: Optimism Price Prediction
Before diving into trading in Polygon, Arbitrum, or Optimism it is imperative to do thorough research and gain a deep knowledge of the market conditions & sentiments. Fundamental knowledge plays a pivotal role in understanding the next price action of the token. Therefore, before entering into any trade, it is important to have deeper research on all aspects.
Investing in Polygon or Arbitrum or Optimism is extremely simple & safe. All you need to do is,
Read more: Ethereum vs Polygon