Ethereum and Polygon are two extremely popular networks for partakers in different decentralized finance and Web3 activities. While Ethereum was created as an alternative to some of Bitcoin’s early restrictions,. Similarly, Polygon was created to offer a solution to some of Ethereum’s limitations. Essentially, Polygon serves as a sidechain that operates parallel to the well-known Ethereum blockchain. This implies that Polygon is completely compatible with Ethereum and its transactions are conducted at a smaller amount. So, considering Ethereum vs Polygon, which one should you invest in as a crypto investor? Let’s find out!
An overview of Ethereum
Ethereum both functions as a blockchain and a decentralized, open-source platform. Its native cryptocurrency coin, Ether (ETH), powers the platform and gives incentives to miners to help validate transaction blocks. Feeling restricted by the Bitcoin blockchain, a group of developers created Ethereum in 2015. They needed to use the technology for highly complex financial transactions. It was founded by Vitalik Buterin, who first published the Ethereum whitepaper highlighting its unique features and architecture.
Its early-mover benefit makes it one of the first crypto tokens to draw mainstream attention. Today, Ethereum has become one of the most widely used platforms because of its flexibility and power. Ether is second to the popular Bitcoin in both total market cap and price.
Ether was originally established as a proof-of-work blockchain just like Bitcoin, for which confirming transactions needed huge amounts of computing power. In September 2022, Ethereum moved to the less energy-consuming proof-of-stake unanimity mechanism in an event called “The Merge”. The aim of this event was to provide solutions to some of its scalability and efficiency problems.
Talking about Polygon
Polygon’s root story is similar to that of Ethereum, as it was created out of developers’ frustration at some of the drawbacks of Ethereum. Polygon (then known as the Matic Network), was created in 2017 by a group of Mumbai-based expert software engineers. Its developers were hoping to enhance Ethereum’s user experience, especially around transaction cost and time.
Gas fees are usually paid to the network participants for the role they play in securing the network and confirming new transaction blocks, usually done in the network’s native crypto token called MATIC. The more jammed a blockchain network is at any stipulated time, the more gas a user has to pay to validate their transaction.
Even after The Merge event, Ethereum is still only capable of processing roughly 27 transactions per second (TPS), a fundamental gauge of a blockchain network’s scalability. Although this is far superior to Bitcoin’s average of just 7 TPS, it pales when compared to Polygon’s 7,000 TPS.
Polygon Network’s native token called MATIC was launched during the initial coin offering (ICO) sudden boom. Just like many developing cryptocurrencies, MATIC debuted with a small price of just a fraction of a penny. It would then reach an all-time high price of $2.92 in 2021 before fluctuating alongside the other tokens in the crypto market in the subsequent years.
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Which is better for payments?
There are some criteria you have to consider when assessing a cryptocurrency’s worth as a payment method. Discussing Ethereum vs Polygon regarding transaction fees, MATIC is the obvious winner. A regular Ethereum gas fee for just a simple ERC-20 crypto token transfer costs around $1.68, while Polygon’s gas fee costs about $0.0026.
Also, when considering transaction speed, Polygon takes the lead. As stated above, the Ethereum Network is only capable of processing roughly 27 to 30 transactions per second. On the other hand, Polygon, leveraging its network of less-crowded sidechains, can process roughly 7,000 transactions per second.
When assessing ubiquity, Ether is currently the second most valuable and useful cryptocurrency, so it enjoys widespread use and reputable name recognition. Nevertheless, thousands of traders around the globe now accept MATIC payments, but it isn’t as widely accepted as Ether. As for ubiquity, Ethereum still takes the lead.
Ethereum vs Polygon: Which should you invest in?
Like most digital currencies that aren’t stablecoins, both tokens (Ether and MATIC) have undergone dramatic and surprising price fluctuations since their launch. Nevertheless, if you had bought either of the coins early enough and held on to it through the unstable ups and downs, your coins today would most likely be worth much more than your original investment. However, since Ethereum is more globally accepted than MATIC, many traders decide to play safe by investing in it.
Lastly, remember track records. Ethereum has a verified track record dating as far back as 2015 and also managed to perform “The Merge” in 2022 during a bad crypto meltdown. So if you’re seeking a crypto token to ride out any financial storm, Ethereum should probably be a better choice. Ultimately, it is left to you to weigh your options based on usability and the goals of your investments and make the best choice for you.
How to buy Ethereum and Polygon on Bitmama
There are two ways you can buy Ethereum or Pologon from Bitmama – via instant order or the Bitmama P2P trading platform. Let’s walk you through both steps:
Purchasing Ethereum and Polygon (Matic) directly from Bitmama (Instant order)
Follow the steps below to purchase Ethereum and Matic directly from Bitmama:
1. Navigate to the verification page in your ”Account” section. Click on the verification button to submit the necessary documents and verify your account up to level 3.
2. Fund your Bitmama wallet with the sum you wish to purchase Ethereum or Matic by selecting “Fund” on the homepage and following the process.
3. Return to the homepage and, select “Buy”.
4. Select Ethereum or Matic from the drop-down menu offering the types of crypto you can purchase.
5. Select the wallet you wish to be debited from (Naira, Cedis or Shellings).
6. Lastly, crosscheck all the relevant details and select “Buy” if it checks out.
7. Your Bitmama crypto wallet will be credited instantly with the purchased Matic.
Purchasing Ethereum or Polygon (Matic) from the Bitmama P2P exchange
Follow the steps below to purchase Ethereum or Matic from the Bitmama P2P exchange:
1. Download the Bitmama app for Android or iOS, register and log in.
2. Navigate to the verification page in your ”Account” section. Click on the verification button to submit the necessary documents and verify your account up to level 3.
3. Select “P2P” in the bottom menu on your screen
4. Lastly, proceed to browse the available listing and choose the Ethereum or Matic deal that works for you. Select “Buy” to initiate the transaction and complete the process.
Ethereum was developed to provide a solution to some of Bitcoin’s restrictions. Likewise, Polygon was developed to enhance some aspects of the Ethereum blockchain. This was around scalability, network fees and speed. Given the consistent growth of the Web3 and DeFi ecosystem, we project that both Polygon and Ethereum will probably have a significant seat at the blockchain table for a long time to come.
Whichever choice you make, Bitmama offers a secure marketplace for crypto enthusiasts to trade both Ethereum and Polygon tokens. Additionally, you can also perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment. Get started today by downloading the Bitmama app.
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