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A comparison between a layer 1 and a layer 2 blockchain? That is an interesting combination to move along in the process of understanding the crypto asset! Given the last decade has been mostly heavy on blockchain, another subpart that captured the attention of the crypto enthusiasts was DeFi. Ready for the front row seat to dabble into the basics of both DeFi protocols; Polygon and Ripple?
What is Polygon?
Earlier referred to as Matic Network; Polygon is a Layer 2 scaling solution that helps in the development of Ethereum scaling and infrastructure. As per the description from the developers, the Polygon project aims to create “Ethereum’s internet of blockchains”, by providing solution to the scalability issues of existing blockchains while also offering developers a set of tools to help build ultra-scalable and high-performance blockchains and decentralized applications (DApps).
Apart from scaling, the more important goal for the Polygon (MATIC) network is to help enable developers of the multi-chain Ethereum ecosystem. Polygon MATIC works with the aim to help the community in effectively transforming Ethereum into a full-fledged multi-chain system. This is also often referred to as the Internet of Blockchains. The multi-chain system provided by Polygon is of a similar nature to that of the other ones available; for example, 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.
Apart from that, Polygon is also the only scaling solution which supports Ethereum Virtual Machine (EVM). This allows different blockchains to swiftly exchange value and information, while eliminating the technological barriers that exist between most blockchains.
Did You Know? Polygon blockchain can process up to 65,000 transactions per second, with a block confirmation which takes less than two seconds.
Additional Read: Polygon vs Arbitrum vs Optimism
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.
Latest Polygon News:
- Working on the scaling solutions for the crypto community, the Polygon network worked on its zkEVM solutions. It is a scaling solution that is developed to make dApps more scalable. The Polygon zkEVM feature is equivalent to Ethereum; which means that its byte code can be run on layer 1 as well as layer 2.
📢 zkDay 2.0
🗓 MARCH 27
✨Launch of Polygon #zkEVM Mainnet Beta✨
The journey to the frontiers of Web3 that will take Ethereum further than ever before ⚡️
special guest ➡️@VitalikButerin ⬅️ 👏🏿
— Polygon (Labs) (@0xPolygonLabs) March 16, 2023
- As per the data shared by DappRadar in its Blockchain Games Report, Polygon has emerged as the second largest blockchain gaming network with about 138,081 unique active wallets (UAWs) that has engaged in games in March 2023.
Top Projects Built on Polygon Blockchain
|It is a cross-chain atomic swap protocol supporting multiple blockchains
|It is a decentralized application on Polygon
|It is a file storage service offering privacy vis decentralization
|It is the first native stablecoin protocol on Polygon
|It is a decentralized protocol enabling indirect liquidity provision
Polygon vs Ripple: Comparative Analysis
|Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun
|David Schwartz, Jed McCaleb and Arthur Britto
|Plasma Framework + Proof of Stake (PoS)
|XRP Ledger Consensus Protocol
What is Ripple?
Back in 2011, the developers of Bitcoin started noticing the waste that was left behind after mining Bitcoin. That is when the developers of XRP started working on building a distributed ledger that will solve the major fundamental limitations of Bitcoin. Hence, at the beginning, Ripple was labeled as “Bitcoin without Mining”.
To describe it further, XRP is the native crypto, on the XRP Ledger public blockchain, which is there to be used for the suite of products that is developed by RippleLabs. The interesting fact is that, all the XRP coins are pre-mined, which means that all the 100 billion tokens have already been mined. No new XRP tokens will be mined now. Thus, the only two sources of deflation in XRP are the transaction costs and sending the XRP tokens to accounts for which no one has a key.
Unlike the well known consensus mechanism of Proof of Work and Proof of Stake, Ripple works on its consensus protocol, known as the XRP Ledger Consensus Protocol. Similar to any other protocol, this also caters to the act of negating the possibility of double spending.
A set of nodes works on this validation of transactions in the blockchain; which is also called the Unique Node List. They are expected to act independently and not collude with each other. Once a majority of these nodes agree on a certain state, that state is adopted and added to the XRP Ledger History.
Unique Features of Ripple (XRP) crypto are:
- All the XRP tokens are pre-mined.
- The XRP ecosystem caters to a wide variety of applications and use cases that are related to payments which includes micro payments, DeFi, and, NFTs.
Latest Ripple News
- Staying true to their initiative to work with lesser waste in the crypto world, Ripple has been making investments in carbon removal solutions to fight against climate change.
Our investments in carbon removal solutions from BC Biocarbon and @CarbonCure accelerates their decarbonization mission and scales impact in the fight against climate change. 🌎
See how we are working together on innovative climate action. https://t.co/XyJ7IcCib6
— Ripple (@Ripple) April 7, 2023
Pros and Cons of Polygon vs Ripple
|The placement of the validation system makes Polygon more secure.
|The XRP transactions are fast and cheap.
|The Polygon blockchain is built to solve the scalability issue and can process upto 72,000 transactions per second.
|The Ripple payment network is already used by financial institutions.
|The experience of the MATIC blockchain is similar to that of Ethereum.
|Small business owners and consumers can use XRP for secure money transfers.
|The development happening to bring forth ETH2.0 might solve the issues that are currently being taken care of by MATIC.
|According to crypto enthusiasts, Ripple’s consensus protocol is arguably less secure than other methods.
|A lot of Ripple’s banking partners use RippleNet and not its XRP crypto
|The Ripple network has attracted controversy as it is run by a private company and due to the recent SEC lawsuit
- The MATIC price today is running on $1.12, with a 24-hour trading volume of $241,150,877. The price has seen an upward trajectory of about 2.53% in the last 24 hours. The market cap of Polygon is standing at $10,320,642,046, as of April 11, 2023.
- The MATIC price has surged from the interim lows around $1.046 during the first week of April 2023 and is believed to be heading towards $1.245, which has been a major resistance and also a price where it had previously faced a rejection
- Given the upward trajectory continues, the price may reach around $1.8 to $2.2 by the end of Q2.
- The XRP price today is running on $0.51, with a 24-hour trading volume of $987,101,577. The price has seen an upward trajectory of about 2.32% in the last 24 hours. The market cap of XRP is standing at $26,675,093,196, as of April 11, 2023.
- The RSI is hit the oversold levels during the first week of April, but has not continued with the trend. This may result in the pace of the XRP rally to be lowered for a while.
- However, if the upward swing continues and XRP manages to secure price levels above $0.53, the price has a chance to remain that way and reach beyond $0.6 within Q2.
MATIC vs XRP: Which Is The Better Buy?
Both the crypto assets cater to a different aspect of the crypto market. While Polygon is laser focused on improving the scalability solution for the crypto community, XRP is working on the payments methods and diversity for the same. Given the current scenario, Polygon has been making improvements to its network for the better adoption of Web3, while XRP is working on maintaining a greener way of working while also catering to processes that will soon enable NFT payments options as well.
On a wider lens, both of these crypto assets do not have a major difference as they are working for different use cases. In order to make up one’s mind about which token to choose, a thorough research on the tokens are imperative, nonetheless.
How to Invest in Polygon and Ripple
Investing in crypto is super simple, safe, and secured with CoinDCX app. It does not matter whether you want to buy MATIC or wish to trade XRP price today, we have got you covered.
Here are the 3 simple steps to buy your first MATIC or XRP with CoinDCX.
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