Cryptocurrencies were created based on the Bitcoin blockchain, which was the only public ledger where all Bitcoin payments and crypto transactions were recorded.
However, with more investments poured into this industry and advanced technology surrounding cryptocurrencies, new blockchains and use cases emerged. Today, decentralised chains can support transactions, digital applications, crypto investment projects and other DeFi platforms.
Polygon and Avalanche emerged recently as the fastest-growing networks with various use cases that benefit crypto developers and decentralised platforms. Each blockchain offers distinct benefits and supports multiple tokens and coins.
Let’s analyse Polygon vs Avalanche to find out the pros and cons of each network and which one works best for you.
Understanding Polygon
Polygon Network was founded in 2017 by three engineers and backed by several investors from Decentraland and Chainlink. The developing team created Polygon as a layer-2 network on the Ethereum blockchain.
Layer-2 chains are supplementary networks built on top of a particular blockchain mainnet to unload some processes and operations. The Polygon transaction speed is one of the strongest in decentralised networks, processing around 65,000 transactions per second.
MATIC is the native token of the Polygon sidechain, with a circulating supply of over 9 billion coins out of 10 billion in total.
Polygon uses proof-of-stake for transaction validation, with a node’s network consisting of validators and delegators. Validators process transactions and ensure that each operation is compliant with the set rules. Once a transaction is verified, it gets added to the blockchain.
Meanwhile, delegators act like guarantors, investing their MATIC through a validator and receiving rewards for every verified transaction but losing their share of the rewards if the validator acts maliciously.
Polygon Supernets
Polygon supernet is the blockchain model that allows other crypto projects and decentralised applications to be compatible with the network. This model consists of different components, as shown below.
- Polygon plasma: The layer-2 chain that allows the mainnet to delegate some operations to the sidechain.
- ZK-rollups: An innovation used to perform off-chain transactions. The zero-knowledge approach is a validation model that does not expose the processed data or private keys.
- Sovereign chains: Layer-2 chains that work as a stand-alone chain with its own validators and miners and host multiple projects and dApps.
- Secured chains: Scalability chains that depend on the mainnet validators, miners, and security features for building several DeFi platforms and digital assets.
Polygon Use Cases
Polygon scaling solution helps overcome the shortcomings of the Ethereum blockchain, especially when it comes to speed and costs. This layer-2 expands the utility ETH blockchain to the following use cases.
- Lending and borrowing using Polygoin decentralised pools at lower transaction fees than Ethereum while benefiting from Ethereum’s main chain security characteristics.
- Supporting decentralised exchange platforms that utilise the low fees and high processing power of the Polygon network.
- Many NFT marketplaces take advantage of Polygon’s cost and security structure, allowing digital artists to create and mint their crypto creations.
- Many DAOs create their decentralised ecosystem on Polygon, promoting community-driven control and transparent voting and governance systems.
Understanding Avalanche
Avalanche was initially launched as a testnet in 2019, but its final release took place in 2021 by the Ava Labs Company, which consisted of three blockchain professionals who developed Avalanche as a scaling solution. The network is highly compatible with ETH-based applications and platforms because it supports the Ethereum virtual machine.
The chains supported Avalanches comprise X-Chain, C-Chain, and P-Chain. This open-source system was created to cover the gaps in the Bitcoin and Ethereum blockchains, especially when it comes to scalability and supporting multi-chains.
The Avalanche transaction speed is powered by smart contracts operations, with a processing capacity of over 4,500 transactions in one second compared to Ethereum’s 14 transactions per second, making it one of the fastest networks.
AVAX is Avalanche’s native token and the centralised currency for the network, which can be used for decentralised governance, a voting mechanism and a fee payment method for digital developers.
The total supply of AVAX is planned at 720 million, with a current circulation of 367.5 million coins, which has anti-inflationary characteristics based on users’ votes and a consensus method.
Avalanche Subnets
Avalanche multiple subnets allow businesses and crypto projects to create their own public or private blockchains using unified security features.
The three sub-chains of Avalanche (AVAX) are secured with different layers. Snowman safety protocol is a chain-optimised measure to secure fast smart contracts operations, besides a DAG consensus that ensures transactions are not breached by settling them as fast as possible.
As a result, the Avalanche networks are secured from multiple blockchain cyber threats, including the most common ones, such as 51% attacks.
What are Avalanches Three Blockchains
AVAX’s unique design consists of three chains, each with distinct characteristics and uses as follows.
- X-Chain: Or the Exchange chain, the environment where digital assets on Avalanche are created, operated and managed, using AVAX as a payment method.
- C-Chain: This smart contract chain supports Ethereum virtual machines that host decentralised applications and crypto projects that are compatible with the Ethereum blockchain.
- P-Chain: This platform chain is responsible for the coordination and operations of sidechains and nodes between each subnet.
Polygon vs Avalanche: Fees
Polygon gas fees are variable based on the transaction speed selected, with an average of $0.000181. The network offers three choices, standard, fast, and rapid, to finalise operations, and each type is denoted by gwei, which is the denomination of the cryptos used to initiate the transaction.
On the other hand, Avalanche gas fees also depend on the transaction speed, which ranges between slow, normal, and fast, with costs that range from 0.001 to 1 AVAX. The Avalanche base fee varies between the used sidechains.
Polygon vs Avalanche: Validator Requirements
The Polygon and the Avalanche networks use proof-of-stake but with different approaches. Polygon follows the Istanbul Byzantine fault tolerance (IBFT) protocol, which ensures achieving consensus on transactions at the expense of decentralisation. Any node can become a validator by participating or staking MATIC.
However, Avalanche uses the Snowman protocol, which ensures fast transactions and settlements without sacrificing much of the decentralisation traits. Participants must have over 2,000 nodes to become validators and be eligible to receive rewards.
Polygon vs Avalanche: Scalability
Both networks support a huge number of DeFi projects and dApps, with a total value locked that exceeds $5 billion in each network. Polygon’s scalability solution offsets the shortcomings of its base blockchain, Ethereum. Polygon networks support many crypto platforms, such as Quickswap, SushiSwap, Curve and more.
On the other hand, Avalanche supports over 200 crypto projects with a total value locked in that peaked at $10 billion. Avalanche’s three sidechains support different Web 3.0 platforms, such as TraderJOE exchange, TrustSwap, Aave and more.
Advantages and Disadvantages of Polygon and Avalanche
Each chain has different characteristics and features, supporting various decentralised platforms and projects that utilise the transaction speed and scalability solutions of each network. Let’s take a look at the pros and cons of each blockchain.
Polygon: Pros and Cons
- Polygon transactions per second are estimated at 65,000 TPS, which is superior to other networks.
- Low gas fees, averaging less than $0.001.
On the other hand, Polygon still relies on the Ethereum blockchain, which can potentially create network disruptions or network congestion.
Avalanche: Pros and Cons
- Reliable security protocols that preserve decentralisation and scalability.
- Supports many crypto projects and Web 3.0 platforms.
On the other hand, Avalanche requires staking 2,000 AVAX to become validating nodes, and the regulations do not punish malicious actors.
Conclusion: Which One is Better?
Polygon and Avalanche are the most famous networks when we talk about DeFi projects and tokens, with robust scalability solutions that outperform standard blockchains like Ethereum and Bitcoin.
Many crypto businesses launch their operations using Polygon and Avalanche, which are supported by B2BinPay crypto payment solutions.
B2BinPay is a leading wallet and decentralised payment provider with solutions that include the Polygon and the Avalanche blockchains, allowing you to pay with USDT, USDC, DAI, FRAX, TUSD, and EUROC.
Choosing the right network depends on your company’s goals and strategy. Whether you prefer fast transactions or highly secure operations, Polygon vs Avalanche will help you decide how to scale your business in cryptocurrencies.
