Future of polygon chain and its sustaining technology compared to other layer 2 solutions
To begin with, let’s talk about the Polygon Network, it’s a side chain for increased capacity and lower costs. Polygon is a protocol and framework for connecting Ethereum compatible blockchains. It also operates a hybrid Proof of Stake and Plasma sidechains. So, DApps and tokens from Ethereum can be deployed on the Polygon Network for increased throughput and scaling. Polygon is the first cross chain deployment of Instadapp. Instadapp contracts are cross-chain compatible and users can create Instadapp accounts on the Polygon Network. Accounts are blockchain specific, but are controlled by the same owner address.
Be that as it may, Polygon is both a side chain and sister chain to Ethereum. Sister Chains share keypairs with Ethereum. The owner address on Ethereum can also access its any number of sister chains, for example: Polygon, XDAI and Optimism.
Instadapp accounts are smart contract wallets and are not keypairs. Therefore, a generated DSA you created on Ethereum does not have control to the same address on another network and vice-versa. Please exercise caution when sending assets and make sure you submit assets to the correct address on the correct network. However,DApps on different chains may operate different or use their own parameters. For Example the AAVE Market on Polygon is a separate market that contains its own lending and borrowing rates and assets on AAVE Ethereum market do not affect AAVE rates on Polygon and vice-versa.
Now, What does layer 2 mean, it’s a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet. So, Layer 2 solutions increase throughput (transaction speed) and reduce gas fees. Popular examples of Ethereum layer 2 solutions include Immutable X, Polygon, and Polkadot. Layer 2 solutions are important because they allow for scalability and increased throughput while still holding the integrity of the Ethereum blockchain, allowing for complete decentralization, transparency, and security while also reducing the carbon footprint (less gas, means less energy used, which equates to less carbon.) Although the Ethereum blockchain is the most widely used blockchain and arguably the most secure, that doesn’t mean it doesn’t come with some shortcomings. The Ethereum Mainnet is known to have slow transaction times (13 transactions per second) and expensive gas fees. Layer 2s are built on top of the Ethereum blockchain, keeping transactions secure, speedy, and scalable. So, Each individual solution has its own pros and cons to consider such as throughput, gas fees, security, scalability, and of course functionality. No single layer 2 solution currently fulfills all these needs. However, there are layer 2 scaling solutions which aim to improve all these aspects; these solutions are called rollups. Rollups are solutions that perform transaction execution outside the main Ethereum chain (layer 1) but post transaction data on layer 1. As transaction data is on layer 1, rollups are secured by layer 1. Inheriting the security properties of layer 1 while performing execution outside of layer 1 is a defining characteristic of rollups. There are three properties of a layer 2 rollup:
Transactions are executed outside of layer 1 (reduces gas fees)
Data and proof of transactions reside on layer 1 (maintains security)
A rollup smart contract which is found on layer 1, can enforce proper transaction execution on layer 2, by using the transaction data that is stored on layer 1
Ultimately, rollups require users like you and me to stake a bond in the rollup smart contract, which encourages users to verify and execute transactions correctly.
Rollups are useful because they reduce fees, increase transaction throughput, and expands participation.
That’s just by the way…..Now, what’s the future polygon compared to layer 2 solution
This is where QuickSwap comes in, QuickSwap has seen popularity due to the speed and low fees offered by the Polygon Network. It’s also compatible with the Ethereum blockchain, allowing you to swap ERC-20 tokens. There is, however, always the risk of impermanent loss. So, The Uniswap model has become a standard across different blockchains and Layer 2 platforms. QuickSwap provides the same functionality as Uniswap, but it’s based on the Polygon network instead of Ethereum. Although QuickSwap is a fork of Uniswap, key differences between the two have led to it being favored by some users. Polygon is an infrastructure for creating Ethereum compatible networks. These blockchains can also interact with one another, creating a layer 2 ecosystem of interconnected blockchains. The Polygon Network is the project’s official sidechain that works with a Proof of Stake consensus mechanism.
Now, the buttomline is this, The Polygon Network’s popularity comes from its speed as a scaling solution and cheap gas fees. Transaction fees are paid in MATIC tokens. As the network is compatible with the Ethereum Virtual Machine, developers can fork existing DApps (Decentralized Applications) such as Uniswap onto the side chain. Many users prefer Polygon for its quicker transaction times and extremely low fees. Liquidity providers and swappers enjoy Uniswap’s audited code with the advantages of the ERC-20 supporting Polygon Network. One large benefit is being able to trade ERC-20 tokens with a simple bridge, avoiding the higher fees of Ethereum. QuickSwap, therefore, provides a good balance between Ethereum compatibility, ease of use, and affordability.
The Polygon is a type of network that works as a network of interconnected blockchains, with the help of the Polygon there is no limitation to retain only to particular chain network, but the Polygon chain is interconnected with a wider landscape. The goal of the Polygon is to offer the blockchain developers a type of network that is decentralized, anyone can plugin their own blockchain and overcome the traditional limits of the particular community blockchains.
In summary, The success of Polygon lies in its Defi-based decentralized applications, and non-fungible tokens(NFT), developers can build and connect to any Ethereum-compatible blockchain, therefore Polygon refers to a layer 2 framework…. This is the Future of the polygon chain