Polygon VS Ethereum
So at the time of this recording the Russian invasion of ukraine has entered Its third day and unfortunately fighting Continues to intensify now this crisis Is showing us a lot of things but it's Also reminding us that any money fiat Money that is held in centralized bank Accounts is ultimately not under our Control it's under the control of Centralized bodies that is to say Whether or not we can access it during Such times of crisis is completely at The discretion of those banks who Control it take a look at this for Example spare bank which is the largest Bank in russia has limited cash Withdrawals for its customers to just 20 While ukrainians are already facing a Cash withdrawal limit due to this Conflict people are gonna have different Opinions about this but as we see it Such unfortunate events emphasize the Need for a parallel financial system Where we can take our money wherever we Want and thankfully we have access to Such blockchain backed financial systems Right now but which one should you rely On well in this video we're about to Compare ethereum and polygon two of the Biggest decentralized finance enabling Projects and by the end of our video we Should be able to conclude where the Future of our finance lies and which of These two heavyweights is the better
Project polygon or ethereum Hey guys happy weekend my name is maddie And this is altcoin buzz we are a crypto Investment research company i'm always Proud to say that we've been making Millionaires since all the way back in 2017 that's because we were early Investors and vocal about our Investments in ethereum binance cardano Crypto.com engine matic network chili's Quant network polka dot uni swap and a Lot of other big winners that netted us 100 x profits or more so if you don't Want to miss out on the next potential Crypto gem or altcoin moonshot be sure To like this video subscribe to our Youtube channel altcoinbuzz and hit the Bell to receive notifications because That way you're alerted by youtube every Time we publish new content and a quick Disclaimer as usual guys there's no such Thing as a guaranteed return whether You're talking about cryptocurrency or Any other financial space yes with due Diligence and deep research you increase Your odds but there's no such thing as a Sure bet so just as a friendly reminder This video represents neither financial Nor investment advice with that being Said let's launch right into ethereum Here if you've been in this space the Crypto space that is at all over these Last six months you already know that Despite the scalability issues the
Ethereum network is still attracting a Lot of development and investment of Course in fact it leads the entire d5 Ecosystem by locking over 56 Tvl that's total value locked and in the Last 12 months eth has increased its Value by 170 percent and at present it has 415 Protocols built on top of it on the Other hand polygon has only 3.3 of the Total tvl and it has 180 protocols built On its networks but we can't ignore the Fact that polygon is fairly new in the D5 space and as a result matic that's The native polygon token it's grown four Thousand seven hundred percent in the Last 12 months will polygon continue to Grow at this rate and outpace ethereum Or is ethereum going to continue to hold Its own and maintain that first mover Advantage in the defy space we're Looking at the merits of both of these Projects in detail let's start with a Head-to-head comparison of what they're All about in their main features let's Start with matic here that's the ticker Right for polygon which is a secondary Scaling solution for ethereum's Blockchain it lets developers connect Their ethereum compatible smart Contracts in polygon and this blockchain Fills the gap of the existing ethereum Network which suffers from slow Transactions as you guys know high fees
And polygon does that without Sacrificing on security polygon is Basically considered an l2 blockchain so Imagine that ethereum is the highway Which has its own fee rates and Transaction speeds well polygon is like The parallel road which gives faster and Cheaper transactions as an alternative Option with ethereum we all know that it Was the blockchain that changed Everything really in the whole Blockchain ecosystem with its launch in 2015 it not only introduced a Programmable blockchain where people can Develop dapps but it was the inspiration For many other l1 and l2 blockchains That came later and which ended up Having the biggest developer communities In the world therefore the blockchains That came after they all used ethereum's Technology to build optimized networks With better benefits to users let's go Back to matic for a second polygon is a Proof of stake that's pos blockchain That proposed the following improvements To ethereum's limitations first of all Evm compatibility is one of the most Important features of polygon because it Lets ethereum developers launch their Dapps in just a couple of clicks and With faster and cheaper transactions Interoperability is also a big deal that Lets cross-chain protocols exchange Information between polygon and other
Block chains and also as a feature you Have security modules this means that Polygon works as a high customizability Block chain that enables cross-chain Connections without sacrificing security On the other hand the ethereum Blockchain allows for the introduction Of new concepts such as tokens Decentralized applications defy and of Course nft's non-fungible tokens and This blockchain is the true leader of Web3 developments and here are Ethereum's main features you have a Token generator and in the blockchain Ecosystem digital assets are called Tokens so you can tokenize any real World assets that cannot be split into More parts for example we all know that You can split a physical piece of art And sell it in multiple pieces however That art could be converted potentially Into a non-fungible token and therefore With those tokens you don't only get a Good sell price for it but you can get Royalties every time it's resold also You can use tokens to put in as Collateral to get crypto loans with Ethereum you also have the new free Internet so nowadays we gain access to Free so-called internet services by Giving our personal information away However using ethereum you can access Any ecosystems dap just with a wallet no Personal info is needed and you'll
Always be in control of your assets Ethereum also offers a new financial World order it's a heavy term but it's True the magic of this blockchain is That it provides a real solution to Unbanked people that can send receive Borrow lend money worldwide really 24 7 Without the need of an id and this is What we now call decentralized finance Or defy which is getting new adopters Every day it's also programmable Ethereum introduced this feature in pow Block chains via smart contracts which Let developers have all kinds of Alternatives like forking of codes this Is where you can reuse code from smart Contracts you can use compatible Languages too developers don't need to Learn solidity the official code Language of ethereum to develop Decentralized applications they can do It by using javascript and other very Well-known languages at this stage Ethereum has far more features than Polygon so it gets the point for this Particular round but that being said we Could see this changing over time let's Talk about the level of decentralization Now there are so many different block Chains out there and each one really Claims to be the one that is truly Decentralized but how do we verify this Can we measure Decentralization well the nakamoto
Coefficient was created to know the Degree to which a blockchain truly is Decentralized the nakamoto coefficient Represents the number of validators or Nodes that have to log off to decrease The blockchain's performance we know That a decentralized blockchain is the One where its information is recorded in Nodes or validators placed in many parts Of the world so the more nodes the more Decentralized the blockchain will be but For comparison purposes it's more Appropriate to use this indicator Therefore let's see how the nakamoto Coefficient is manifested for both Polygon and ethereum so with polygon the Coefficient was measured in august of 2021 and it gives us a result of two Considering that the number of Validators are 100 in this blockchain Which is actually a very low level you Can see it being outpaced here by a Whole slew of probably what are familiar Names on the other hand vitalik buterin Measured this indicator in december of 2020 even further back and it got Ethereum that is between 25 and 34. and It should also be considered that at That time ethereum had 7400 Nodes so at the level of Decentralization ethereum wins again Because this blockchain has many more Node validators than polygon at least For the time being okay let's talk
Latest developments here polygon is Always incentivizing web3 hackathons to Make their developer community even Bigger and the prize for the latest Hackathon is 250 000 Another hackathon also recently occurred In miami as well also polygon is working To develop nfts on its platform and an Example of that is the partnership Between prada and adidas moreover social Stack which is a code-free social token Platform is building a community token That will incentivize holders to make Positive actions okay but what about Ethereum well they released a set of Audited libraries called ethereum Cryptography 1.0 that will empower more Secure projects and furthermore Ethereum's blockchain is being used by Unicef so startups can develop web3 Software solutions more easily but you Know to be fair at this point polygon Has had more developments recently in These last few months because it's a Blockchain that's growing more and more And its ecosystem is on a bit of a role Compared to ethereums at least lately so We give this round to polygon okay let's Discuss tokenomics at the time of this Recording polygon's native token matic Is in the 16th position of kryptos in The overall market cap ranking and since It's launched in 2017 matic has rapidly Positioned itself as the first low-cost
And fast alternative to ethereum Nowadays the token has accumulated more Than 10.5 billion dollars in market cap With about 980 million dollars moved in Transactions in these last 24 hours more Important is the fact that its max Supply is 10 billion tokens matic also Has the following use cases you can Participate in defy gaming nfts exchange Protocols and more matic is used for Transaction fees and governance voting And moreover anyone can buy matic Practically from any centralized Exchange okay switching gears and Talking about ethereum we all know that Ether is the native token of ethereum's Blockchain which created the erc20 token Standard and since it was created in 2015 eth has always ranked as the second Crypto with the highest market cap in The cryptocurrency market at the time of This recording eth has accumulated more Than 332 billion dollars in market cap and it Moved a pretty astounding 15.5 billion Dollars in the last 24 hours and despite The fact that eth has no maximum supply This token has always been considered Along with bitcoin as a long-term Investment asset for being projects that Have the most robust technical Fundamentals in the entire sector Therefore eth has the following use Cases you have transaction fees you have
Governance voting you have participation In defy and dows you can buy nfts Non-fungible tokens you can also buy ens Domains if that's something that you're In the market for and of course you can Also have a secure digital identity just Like matic buying eth is very easy Because just about every single exchange In the world has it available you're not Going to run into any trouble acquiring Ethereum but in conclusion we consider That matic wins this particular battle Because despite the fact that the use Cases are about equivalent matic has a Limited max supply and ethereum doesn't Which is a strong point for maddox price Movement in our opinion therefore we are Tied ethereum to matic two and things Are getting interesting here okay now We're talking about the ecosystem Polygons ecosystem has different Decentralized applications when it comes To d5 nfts gaming dao is dev tools Oracles and wallets but here are the Most popular ones so for defy you have Ave curve finance quick swap and sushi Swap for nfts and gaming you have open c Atari decentraland gala games any moca Brands for taos you have blockhonomist El dorado blob dao and ida vol network For wallets you have metamask wallet Connect fortmatic and tokenpocket and For oracles you have umbrella network Certik chainlink for developer tools you
Have lossless validator hardhat and the Graph it's quite a list on the other Hand ethereum's ecosystem is one of the Biggest in the entire ecosystem here are The most important things to consider For d5 you have compound oasis ave and Uni-swap for nfts you have open c Wearable p-o-a-p and audience for gaming You have axi infinity gods unchained Dark forest with the metaverse they have Decentraland and cryptovoxels For tools you have ens that's ethereum Name service golem and gitcoin it's Important to say that many daps in both Ecosystems aren't working in an Exclusive blockchain in other words Their cross-chain applications at this Point ethereum does have a bigger Ecosystem however polygon's ecosystem Has a lot more potential in our opinion So for that reason we're giving matic The point here based on the momentum That it currently reflects okay and Lastly here we're considering some of The latest partnerships for matic there Are dapps like go go coin that have Partnered with polygon to develop very Rare nfts that can get profits up to 45 And also lido finance has partnered with Polygon to let users stigmatic in a Secure and decentralized way on the Other hand in ethereum there really Haven't been any notable partnerships Announced in the social media accounts
Of the ethereum foundation in the last Three or so months and so at this point Polygon has had more partnerships than Ethereum during these last few months we Don't know if that's going to continue To be the case but at least for the time Being we're giving polygon the win in This category so there you have it guys After analyzing these six factors we can Conclude that polygon has much more Potential to scale sustainably in the Short and long term but two major Questions right now have been thorns in The side of polygon what will happen to Polygon after ethereum 2.0 and is Polygon's performance degrading we have Seen a couple of issues there so we are Actually going to explore the answers to Both of those questions in an upcoming Video stay tuned for that we're going to Deep dive into polygon ticker matic but In the meantime guys if you're still Watching be sure to like subscribe share And hit the bell to receive Notifications once again these are our Opinions these are expressions of our Own enthusiasm but never financial Advice that being said we do wish you All the very best of luck if you choose To invest check out these other couple Of videos guys which should be popping Up right about now have a great start to Your weekend stay safe and as always we Do hope to see you again soon in our
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