Bitcoin is the gold 2.0 digital store of value, but it’s the other Layer-1 protocols (and Layer-2s built on top) that will facilitate the vast majority of tomorrow’s digital economic transactions.
And concerning these L1s and L2s, the future is likely multi-chain. Various use-cases and economies will develop within a select basket of protocols. Savvy investors will benefit by performing due-diligence on the protocols best positioned to become the powerhouse economic chains of tomorrow.
This article will be exploring two such contenders: Polygon vs Solana. Below, investors, stakers, and validators will find helpful comparison perspectives, data, and high-level positives and criticisms of both projects. So LFG!
What Are Polygon and Solana
Polygon and Solana are both decentralized, proof-of-stake (POS) blockchain networks. Both support diverse economic ecosystems. Both are in the top 12 crypto projects by market cap and provide users with fast transactions and low fees. However, there are major conceptual and technical differences between the two.
- Polygon is a decentralized, POS, L2 multi-blockchain network for Ethereum. Polygon has a POS main-chain, but it also has a software framework that allows third-party developers to create new L2 chains that work with its main-chain and Ethereum chain. Polygon’s core mission is to bolster Ethereum by reducing the latter’s gas fees and increasing its transaction output. Polygon is EVM compatible, and its native token is MATIC.
- Solana is a decentralized, hybrid POS and proof of history (POH), L1 blockchain protocol. Solana is considered one of the most technically advanced in the industry due to this hybrid nature. Solana has a single global state – meaning there is only one working blockchain – with no need for additional scaling solutions or sharding. Solana was engineered to dramatically improve transaction output and fees over other POS competitors. Solana’s native token is SOL.
How Do Polygon and Solana Work
Polygon and Solana use differing macro-schemes and technologies to achieve diverse economic ecosystems, high scaling, low fees, and fast transactions. Let’s examine the details.
Polygon Technicals
- As a POS, L2 multi-blockchain network, Polygon was built for the purpose of supporting Ethereum. With its high TPS and fees at a fraction of a penny, the system is clearly fulfilling its mission for Ethereum.
- Proof of Stake: Polygon’s main-chain uses a decentralized network of 100 permissionless POS validators to secure the network. With a set of staking management contracts deployed on Ethereum, anyone can stake MATIC on these contracts and join as a validator. However, one must currently stake approximately $20K of MATIC in order to become a top 100 validator. So entry is difficult. Validators are subject to rewards and slashing.
- Layer-2: L2s are built “on top” of the underlying L1 for the purpose of improving the latter’s scalability and efficiency. Polygon achieves lower gas fees and increased TPS for Ethereum by processing transactions on the Polygon chain, and then batching over in bulk the synthesized transaction data onto the Ethereum chain.
- Multi-Blockchain Network: The core of Polygon is the Polygon software development kit (SDK). The SDK allows third-party developers to create Ethereum-compatible side-chains and…
David learned about bitcoin in 2015 and has closely followed the crypto industry since then.
His professional interests center around bitcoin, layer-one blockchain protocols, decentralized finance, and clean energy.
An attorney by trade, David has held licenses to practice law in the State of Hawaii and in US federal courts.
