Gas costs in decentralized banking have risen dramatically as the number of blockchain transactions has increased. As a result, DeFi apps are increasingly looking for low-cost equivalents that don’t sacrifice safety, clarity, or efficiency.
Polygon, a multichain scaling solution for Ethereum, has developed a scaling solution and SDK stack for developing Ethereum-compatible networks to solve these challenges. This innovation puts the finest of independent blockchains and Ethereum together in one platform.
Polygon’s newest solution tackles some of Ethereum’s most pressing issues, such as high gas prices and poor transaction times. It is open-source, more safe than existing parachains, and provides a full compatibility architecture for DeFi applications.
While Ethereum is the most popular blockchain development platform, it has drawbacks such as fluctuating transaction prices, which make transactions disproportionately costly, limited capacity, and prolonged proof-of-work consensus, to name a few.
Hence, numerous DeFi apps require a solution that allows them to take advantage of Ethereum’s booming environment while avoiding these drawbacks. Polygon’s goal of being an L2 solution makes it the ideal platform for interconnecting and constructing Ethereum-compatible multi-chain systems.
Polygon successfully converts Ethereum into a full multi-chain platform, permitting the ecosystem to develop and flourish at never-before-seen speeds while assuring the lowest possible costs and using Ethereum’s underlying network security.
As a result of these advantages, top DeFi projects may now fully utilize Ethereum and link various pararchains. Polygon-based DeFi companies like Aave and 1inch Network are already reaping the benefits of the platform’s incredibly minimal fees. For example, the platform has enabled nearly $43 million in dollar-value exchanges while only expending $25 on gas.
Whilst Polygon’s philosophy is identical to that of other multichain platforms such as Polkadot and Avalanche, the network has numerous advantages. Polygon SDK, for beginners, is based on Ethereum and is a fundamental element of the network.
Platforms such Polkadot, on the contrary, seek to make ecosystems from the ground up. Polygon is fundamentally safer than other alternatives. Polygon works within Ethereum and employs all of its existing combat-tested safety features, whilst other comparable ventures concentrate on establishing protocols that connect to Ethereum.
Furthermore, the platform supports all major layer 2 scaling solutions, including Plasma, zkRollups, Validium, and others, making it a one-stop shop for DeFi applications in need of a configurable, open-source, and low-cost layer 2 aggregator.
Polygon is well placed to become the go-to platform for everyone as more DeFi projects choose for layer 2 solutions. Some of the most well-known venture capital companies and individual investors have poured money into the platform. Mark Cuban, a well-known American investor and entrepreneur, is the most recent addition to this list.