Without a question, the Ethereum blockchain has the most extensive ecosystem of protocols, DApps, and other blockchain-based applications. On the other hand, it is an expensive and long process. This has resulted in the development of blockchains with the goals of lowering Ethereum’s gas expenses and increasing the volume of cryptocurrency transactions. At this point, Avalanche and Polygon make their appearances. The purpose of these two blockchains is to link Ethereum intraoperative blockchains, reduce the prices of transactions, and speed up the process. Stay updated with all the Avax crypto news.
What are Avalanche and Polygon?
Avalanche is a decentralized open-source platform that will be released in September of 2020. It facilitates the development of apps for DeFi and other types of smart contracts. The cryptocurrency known as Avalanche is widely considered to be one of the “Ethereum killers”.
Polygon is an Ethereum scaling method that works at the layer two level. It is constructed on Ethereum and operates in conjunction with the sluggish and pricey blockchain. Polygon was founded in India, but prominent cryptocurrency investors like as Mark Cuban have put money into the company’s ecosystem.
On the Ethereum network, new chains may be created and existing chains can interact with one another thanks to the two blockchains.
Chains That Are Backed Up
Avalanches consists of three different blockchains, each with its own unique functionality.
- Contract Chain (C-Chain) makes it possible for developers to effortlessly design smart contracts and port apps that are compatible with EVM.
- The Platform Chain (P-chain) is responsible for validator coordination and helps to facilitate the construction of subnets.
- The exchange chain allows for the buying and selling of assets using AVAX as payment for the transaction costs.
Polygon, on the other hand, contributes to an increase in the scalability of blockchains by facilitating the use of many chains inside the Ethereum ecosystem. According to polygon crypto latest news, it does this by using validators to carry out transactions off-chain before completing them on Ethereum’s main chain. This results in a large reduction of burden placed on the mainnet, which effectively increases speed and decreases the price of transactions.
- The platform supports both solo and secured chain configurations.
- Chains that are not compatible with Ethereum but have their own proof of stake systems are known as stand-alone chains.
- Validators who are trained professionals should be used to ensure the safety of chains.
There are three applications for avalanches are:
Avalanche blockchain transactions need fees to be paid to the network. The fees associated with the transactions are calculated using Ethereum’s gas fee model EIP-1559.Staking is a mechanism that enables users to take part in the validation process and strengthen the security of the blockchain.The final use case is more technical and includes the use of AVAX as a basic account unit for avalanche numerous subnets.
In addition to these use cases, Avalanche hosts a large number of decentralized applications (dApps), games, and non-fungible tokens (NFTs). Also, Avalanche is compatible with metaverse. Avalanche is the fourth biggest DeFi, and it uses Ethereum for parts of its protocols, such as the Sushiswap lending protocol and the Aave lending protocol. The entire value of the assets locked up in the protocols is 11 billion dollars. Trader Joe is the most prominent decentralized exchange, with around $1.47 billion worth of assets locked inside its liquidity pool.
In a similar way, Polygon encourages the production of games, decentralized gaming platforms, and non-traditional games. As an example, Polygon Studios has shifted their game development focus from Web 2.0 to Web 3.0. In a similar vein, the trading of NFTs may be enabled on the Polygon network via the use of NFT markets such as Opensea. In addition to this, Polygon is quickly becoming one of the major DeFi platforms, with a total locked value of $5 billion (TVL).
Projects Based on the Blockchain
Both blockchains now host hundreds of active projects on their own networks. The initiatives include a wide range of categories, including gambling, collectibles, markets, social media, and gaming. In this particular comparison, Polygon comes out on top with more than 900 projects, whereas avalanche has more than 200 projects. Despite the fact that this is the case, Matic’s most recent forecasts are not quite as positive as Avalanche’s.
The ApeSwap Decentralized financial initiative, which has a total value of assets of $5 billion, is the most ambitious undertaking associated with the Polygon. On the other side, Teddy Cash has established a commanding lead on the Avalanche platform.
Mechanism for Reaching Consensus
A proof-of-stake consensus mechanism is used by Avalanches. Users who have more than 2000 nodes are eligible to operate validator nodes and earn AVAX prizes. Validators with less resources may combine their efforts to form a single validator. Polygon employs a proof of stake system and utilizes random selection to choose transaction validators.
The maximum number of coins that may be issued by Polygon is 10 billion, whereas the total number of tokens that can be issued by AVAX is 395 million. The Avalanche Network comes in at position 10 with a market valuation of $25.7 billion and ranks immediately after Polygons, which sits in the seventeenth position.
While one AVAX coin may be purchased for $96.22, one MATIC can be purchased for $1.68. The current market capitalization of Polygon is $12 billion.