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If you want to improve your market understanding, then a vital step toward that goal is understanding the key differences between Polygon and Hedera. These networks fill specific roles in the market in terms of improving developer performance and results. While there are similarities that could make the two networks seem alike, a closer review shows that many core differences separate the projects. Here's some valuable insight into Polygon Vs. Hedera.
What is Polygon?
Polygon is a layer 2 scaling solution for the Ethereum network. Notably, it's the most popular layer-2 option for ETH developers at this time. The platform leverages a sidechain structure which enables it to remove much of the congestion from the mainnet. This structure reduces the interactions with the main chain and improves performance for the entire ecosystem.
- Source -Polygon Homepage
Polygon has been in the market since 2017. However, at that time it was called MATIC. The platform is the brainchild of four software developers who were based out of Mumbai at the time. They recognized that Ethereum needed a scaling solution that provided lower costs and more flexibility. In 2020, MATIC was rebranded into Polygon.
Today, Polygon provides a host of software development tools which has helped it remain the top option in terms of Ethereum scaling. The network's focus on the developer community makes it stand out and has helped it to secure a strong following since its inception. The combination of flexibility, speed, and security are the top draws for Polygon users.
What is Hedera?
Hedera operates as a new type of decentralized network called a hashgraph. The platform improves on many of the shortcomings of traditional blockchains due to its unique structure and capabilities. Hedera has some significant advantages such as added efficiency and scalability.
Hedera operates as a layer 1 open network that supports the creation of blockchains and digital assets The protocol also supports smart contract programmability and enterprise-level performance. Today, Hedera is a popular option for developers seeking vertical scalability and low-cost transaction fees.
What Problems Was Polygon Built to Alleviate?
Polygon was created to give Dapp developers more flexibility when making new applications for the Ethereum ecosystem. At the time when Polygon entered the market, Ethereum had record high gas fees due to congestion. Polygon eliminates these issues through a combination of factors including faster performance and easier onboarding.
Polygon solves a major concern for developers, poor user experience. The Ethereum development process can be complicated for those unfamiliar with the network. Polygon supports development through a helpful interface and much lower gas fees. Additionally, it has custom wasm execution environments.
Transaction delays have been a headache for Ethereum developers for years. Polygon improves Ethereum performance through the use of a sidechain and a scalable consensus algorithm. This structure improves the finality time for Ethereum protocols as well. The added performance can be integrated via a fully customizable stack that supports interoperability.
What Problems Was Hedera Built to Alleviate?
Hedera was built from day one to improve Dapp programmability and blockchain performance. The network leverages a custom-made Byzantine fault-tolerant consensus algorithm to improve security and speed up finality. This structure reduces the cost and average time for transactions to complete.
Impressively, Hedera can support 10,000 transactions per second without the need for any additional scaling solutions. Also, the network has an average transaction cost of well under a penny. The added performance and unique structure make Hedera a strong contender in the market.
Hedera tackles energy consumption issues at the core. The network is carbon negative which means that it doesn't produce any harmful emissions. Compared to networks like Bitcoin, which is known to require as much electricity as a country, Hedera is far more sustainable. It uses less energy than Polygon as well.
How Does Polygon Work?
Polygon combines a layer 2 sidechain, developers' tools, pluggable modules, and a custom-built utility token. The network streamlines Ethereum actions by removing the bulk of the computations from the blockchain via the Polygon Plasma protocol. This structure keeps the network decentralized while still leveraging the vast array of ERC-20 assets and protocols.
Polygon introduces a tool kit for developers that streamlines the creation of dapps and digital assets. The Polygon SDK tool enables anyone to create custom networks that offer low fees and vertical scalability.
Ethereum developers can also migrate their programs to Polygon with ease. The onboarding process is seamless because the Polygon network is ERC-20 compatible in all aspects. Interestingly, Polygon recently introduced a secure messaging service called Hermes. The Hermes protocol provides seamless interaction between Dapps and smart contracts.
MATIC operates as the core utility token for the Polygon ecosystem. This token is required to interact with features or execute smart contracts. As such, both developers and users need to hold MATIC. Notably, the token is ERC-20 standard and offers fast, permissionless transfer capabilities to users via an open sidechain structure.
How Does Hedera Work?
Hedera is a decentralized network but it's not a blockchain. The network leverages a proof-of-stake and public ledger via a unique data structure. The Hashgraph layout leverages Directed Acyclic Graphs (DAGs) as an alternative method of keeping data across the network users. This structure reduces the number of validations needed to approve a transaction which improves performance while lowering energy consumption.
Hedera provides many of the advantages of blockchain networks such as transparency and monitoring capabilities. However, its structure is more efficient and sustainable. Already, firms have leveraged Hedera to create advanced specific use case scenario systems with great success. The platform supports full smart contract programmability and the gas costs are much less than using layer 1 solutions.
Hedera uses a community governance system which opens the door for users to gain a say in the network progression. Community governance systems are very popular as they improve community cohesion and they prevent hard forks. Consequently, more networks have integrated this style of governance as a way to improve user confidence and participation.
HBAR is the primary token for the Hedera network. Users can earn HBAR for helping to support the network via staking or other processes. The token can also support cryptocurrency activity like sending value internationally. There is a limited supply of HBAR which helps to add to its demand as time progresses.
How to Buy Hedera (HBAR) and Polygon (MATIC)
Currently, Polygon (MATIC) and Hedera (HBAR) are each available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is a top exchange for USA residents. (Excluding New York & Washington state).
Hedera vs. Polygon – Layer 1 Simplicity or Layer 2 Speed?
The debate between Hedera vs. Polygon comes down to a few key factors. Polygon services the popular Ethereum ecosystem which adds to its value. In comparison, Hedera is a new type of advanced distributed ledger that doesn’t require layer 2 options to scale. As such, the main factor to consider is how deep you want to remain in the Ethereum ecosystem.
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