Ethereum and Polygon are two of the most popular blockchain platforms in the world. Ethereum was created in 2015 by Vitalik Buterin, and it has quickly become one of the most widely used blockchain platforms. Polygon, on the other hand, was created in 2017 as a Layer 2 scaling solution for Ethereum. In this article, we will explore the similarities and differences between these two platforms.
Both Ethereum and Polygon are based on the Ethereum Virtual Machine (EVM). This means that they are compatible with all the existing smart contracts and dApps that were created for Ethereum.
Both platforms use a Proof-of-Stake (PoS) consensus algorithm. Ethereum is currently transitioning from Proof-of-Work (PoW) to PoS, while Polygon has always been based on PoS.
Both Ethereum and Polygon are decentralized and open-source platforms. This means that anyone can develop applications and smart contracts on these platforms without any central authority controlling them.
Both platforms support a wide range of programming languages, including Solidity, Vyper, and Rust.
Scalability: Scalability is one of the main differences between Ethereum and Polygon. Ethereum has a limited capacity to process transactions per second, which can result in high gas fees and slower transaction times. Polygon, on the other hand, is designed to be a Layer 2 scaling solution for Ethereum. This means that it can process a much higher number of transactions per second than Ethereum, making it faster and more efficient.
Cost: The cost of using Ethereum can be high due to the high gas fees associated with transactions. Polygon, on the other hand, has much lower transaction fees, making it more affordable for users.
Centralization: While both Ethereum and Polygon are decentralized platforms, there are some differences in the level of centralization. Ethereum is still heavily reliant on miners, while Polygon is designed to be more decentralized and less reliant on a small group of validators.
Use cases: Ethereum is primarily used for creating decentralized applications (dApps) and smart contracts, while Polygon is designed to be a Layer 2 scaling solution for Ethereum. This means that it is primarily used for enhancing the scalability and efficiency of Ethereum.
Adoption: Ethereum has a much larger user base and ecosystem than Polygon. This means that there are more developers, dApps, and smart contracts on Ethereum than on Polygon.
Conclusion on technology fundamentals:
In conclusion, Ethereum and Polygon are two popular blockchain platforms that have similarities and differences. Both platforms are based on the Ethereum Virtual Machine and use a Proof-of-Stake consensus algorithm. However, they differ in terms of scalability, cost, centralization, use cases, and adoption. While Ethereum is more widely used and has a larger ecosystem, Polygon is designed to be a Layer 2 scaling solution for Ethereum, offering faster and more efficient transactions at a lower cost.
History of the price of ETHER and MATIC, the tokens of both technologies
The Ethereum token (ETH) was created in 2014 by Vitalik Buterin, the co-founder of Ethereum. Buterin came up with the idea of creating a new token as a way to raise funds for the development of the Ethereum platform.
At the time, Bitcoin was the only major cryptocurrency, and it was difficult for developers to raise funds for their projects. Buterin saw an opportunity to use the power of smart contracts on the Ethereum network to create a new token that could be sold to investors as a way to fund the development of Ethereum.
In July 2014, Buterin published a whitepaper outlining his proposal for the Ethereum token sale. The token sale took place from July to August 2014, and a total of 60 million ETH tokens were sold to investors.
The initial price of the Ethereum token (ETH) during the token sale was $0.31. However, the price of ETH has fluctuated greatly since then.
In the early days of Ethereum, the price of ETH was relatively stable, trading at around $1 to $2 per token. However, as Ethereum gained popularity and more people began to use the platform, the price of ETH began to rise.
In 2017, the price of ETH experienced a major bull run, rising from around $10 at the beginning of the year to a high of around $1,400 in January 2018. This was largely due to the popularity of ICOs (Initial Coin Offerings) on the Ethereum platform, which drove demand for ETH.
However, the price of ETH has also experienced significant fluctuations and volatility since then. In 2020, the price of ETH was around $130, but it rose to over $4,000 by May 2021. This was due to the increasing adoption of decentralized finance (DeFi) applications on the Ethereum platform, which drove demand for ETH.
Now in 2023, being in March, we have to take into account that after the crypto winter, prices are trying to react upwards, but it will not be easy to go up vertically. The normal thing is to make a floor with several ascending minimums, the latter being reached a few days ago, vital in the short term.
The reason is more than obvious:
The highs of the year 2018, January, were exceeded strongly, on the way to those 4000 USD, and then the price has fallen and pierced those highs, several times, but always making ascending lows.
Will it be together now, that it is touching this zone, already enough not to drill down into the zone again and from here, start building a great long-term movement???
It is very probable.
The Matic token for Polygon Network (MATIC) is the native cryptocurrency of the this Network, and it has gained significant attention in the cryptocurrency world due to its fast transaction speeds and low fees.
The Creation of MATIC Token:
The Matic Network was created in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, who saw the need for a scalable solution for Ethereum. They created the Matic Network as a way to provide fast, secure, and low-cost transactions on the Ethereum network.
The Matic token (MATIC) was created as the native cryptocurrency of the Matic Network, and it was first introduced through an Initial Coin Offering (ICO) in April 2019. During the ICO, a total of 1.9 billion MATIC tokens were sold, raising $5 million in funding for the development of the Matic Network.
The price of the MATIC token has seen significant fluctuations since its introduction. The initial price of MATIC during the ICO was $0.00263 per token. However, the price of MATIC did not experience significant growth until mid-2020.
In May 2020, the price of MATIC started to rise, reaching a high of $0.05 in August 2020. This was due to the growing interest in the Matic Network as a solution to the scalability issues on the Ethereum network. In addition, the Matic team had announced partnerships with several major blockchain projects, including Binance, Polkadot, and Chainlink.
However, the price of MATIC experienced a major bull run in early 2021, reaching an all-time high of $2.68 in May 2021. This was largely due to the growing interest in decentralized finance (DeFi) applications on the Matic Network, which drove demand for MATIC.
Since then, the price of MATIC has experienced significant fluctuations and volatility, as is common in the cryptocurrency market. As of March 2023, the price of MATIC is around $0.50 per token, which is still significantly higher than its initial price during the ICO.
MATIC token have gained significant attention in the cryptocurrency world due to their ability to provide fast, secure, and low-cost transactions on the Ethereum network. The price of MATIC has seen significant fluctuations since its introduction, experiencing major bull runs and significant price swings. Despite this volatility, the Matic Network and the MATIC token remain popular among developers and investors, with a growing ecosystem of dApps and other tokens built on top of the network and looking up the chart of MATIC, I can say that it is, it seems and without it being a buy recommendation, at a good time to think about having it in your portfolio, by TA.
It could finally be finding, after several years, the long-term bullish guideline, which would give it solidity to enter HODL (passive long-term management).
NOT FINANCIAL ADVICE