Bitcoin, the best-known and first decentralized cryptocurrency, paved the way for a variety of other digital currencies based on blockchain technology. One such currency that is attracting more and more attention lately is Polygon. However, Bitcoin is still the largest and most important cryptocurrency for a reason. So, can Polygon take on the crypto giant?
The most important facts about Bitcoin
Bitcoin is a decentralized digital currency invented in 2009 by an unknown person named Satoshi Nakamoto. It enables peer-to-peer transactions without a central intermediary. Blockchain technology serves as a public ledger that tracks transactions. Bitcoin is independent of any government or bank, making all transactions both anonymous and secure. Cryptographic algorithms secure the network and make it difficult for hackers to access databases. Due to its increasing popularity, more and more institutional investors are also participating in Bitcoin, such as through direct purchases or investments in relevant companies. There are also services that accept BTC as a payment method. However, there are risks due to the high volatility. Who as a trader sell bitcoinor want to buy should therefore carry out a comprehensive analysis in advance and put together a solid trading plan.
What is polygon?
Polygon is an open-source blockchain launched in 2017 to solve Ethereum’s scalability problems. Polygon acts as a sidechain to Ethereum and offers its users cheaper fees, greater scalability and faster transaction speeds compared to the main Ethereum network.
The native token is “Matic”, which was originally the name of the network. Since the ICO in March 2020, Matic has seen convincing gains of several hundred percent. Currently (as of June 2023), the Matic price is around $0.90, which is about 60% off the all-time high.
Since Polygon is a sidechain, it is less secure than Ethereum and does not have the same adaptability. Nevertheless, the platform is slowly catching up, especially in the area of NFTs .
Bitcoin & Polygon in comparison
Bitcoin and Polygon are standout cryptocurrencies with their own strengths and weaknesses. Overall, both currencies serve different purposes. Bitcoin is primarily a store of value and means of payment, while Polygon supports scalable applications.
As a pioneer, Bitcoin paved the way for the industry. It offers a secure, decentralized network based on blockchain technology. BTC is anonymous, safe and widely used as a means of payment. However, transaction fees are high and network speeds are slow, making it less suitable for scalable applications.
Polygon, as a sidechain to Ethereum, offers solutions to the network’s scalability problems . It enables low-cost transactions, greater scalability, and faster speeds. Polygon has also gained a foothold in NFTs and is popular with developers for its ease of use.
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- Source: Plato Data Intelligence: PlatoData