Explaining the differences between the blockchain Polygon and Hedera Hashgraph! Beginner’s guide!
Blockchain technology is being used in a variety of fields, and of these, the Polygon blockchain (hereafter referred to as Polygon) and Hedera Hashgraph (hereafter referred to as Hedera) are particularly noteworthy. Here, we will compare Polygon and Hedera and take a closer look at their respective features and advantages.
| Network name | Polygon | Hedera |
|---|---|---|
| Overview | A sidechain that solves Ethereum’s scalability issues, | a platform that uses its own distributed ledger technology, Hashgraph. It enables the development of high-performance distributed applications (DApps) using a different approach to blockchain. |
| Layer | Layer 2 | Layer 1 |
| Smart contracts | Provides an Ethereum environment through compatibility with Ethereum | Provides smart contract functionality, allowing developers to build DApps using languages such as Solidity |
| Security | Proof of Stake (PoS) ensures that token holders maintain the legitimacy of transactions. | It uses asynchronous Byzantine fault tolerance (aBFT), ensuring high speed and security. Even if some nodes in the network are acting fraudulently, this protocol ensures that the overall consensus is not affected. |
| Ecosystem | DeFi, NFT, DApps, etc. | Used in a wide range of industries, including finance, healthcare, supply chains, and gaming |
| Token symbol | POL (formerly MATIC) | HBAR |
| Sponsoring companies | SoftBank Vision Fund, Sequoia Capital, Disney, Starbucks, Coca-Cola, SBI Holdings, Recochoku, etc. | Google, IBM, Boeing, Nomura Holdings, Deutsche Telekom, DLA Piper, Hitachi, etc. |
| Projects in use | Aave, Sushiswap, Decentraland, OpenSea, etc. | Earthlings.land, Karate Combat,Avery Dennison ,Hashly ,VidChat ,Stray ,sentx,AID:Tech, etc. |
| Quantum resistance | Not implemented (under consideration for implementation) | Not implemented (under consideration for implementation) |
| Consensus algorithm | Proof of Stake (PoS) | Hedera has its own ‘Hashgraph’ consensus algorithm |
| Maximum TPS (theoretical value) | 649 TPS (65,000 TPS) | 10,000 TPS |
| Maximum TPS (actual measured value) | 429 TPS | 3,302 TPS |
| Fee per TPS | $0.015 | $0.0001 |
| Energy efficiency | – | 0.000003 kWh per transaction |
| Launch Date | May 30, 2020 | Sep 16, 2019 |
Features and benefits of Polygon and Hedera
Polygon
Overview: Polygon is a sidechain designed to solve Ethereum’s scalability problem. It provides low-cost, high-speed transactions and is fully compatible with the Ethereum ecosystem.
Features:
Fully compatible with Ethereum
Polygon is fully compatible with Ethereum, making it easy to migrate existing Ethereum DApps (decentralised applications). This allows developers to take advantage of Polygon while still being able to use the Ethereum ecosystem. Specifically, the following points can be mentioned
- Smart contract compatibility: Polygon is fully compatible with Ethereum smart contracts, so existing contracts can be used without modification.
- Development tool compatibility: Developers can use the same development tools as those used for Ethereum (e.g. Truffle, Remix, MetaMask, etc.) on Polygon.
- Improved user experience: Users can use their Ethereum wallets and DApps as they are, reducing the cost of learning and migration.
Bridge Function (Cross-Chain Function)
Polygon’s bridge function is an important tool for moving assets between different blockchains. It has the following features
- Cross-chain bridge: The Polygon bridge is a cross-chain bridge developed to connect Polygon with other blockchains (such as Binance Smart Chain and Avalanche). This allows users to easily move assets between different blockchains.
- Binance Smart Chain (BSC) Integration: The Polygon Bridge allows users to move assets on BSC to Polygon. For example, by bridging BEP-20 tokens on BSC to the Polygon network, it becomes possible to trade and use DApps on Polygon.
- Avalanche integration: Avalanche is known as a fast and low-cost blockchain. Using the Polygon bridge, you can move assets on Avalanche to Polygon. This allows you to access the Polygon ecosystem while taking advantage of Avalanche.
- Simple operation: To use the bridge function, you can easily move assets using a wallet such as MetaMask. Specifically, you can add the Polygon network to MetaMask and use tools such as Matic Web Wallet V2 to perform the bridge operation.
- Low-cost and fast transactions: Using the Polygon bridge allows you to avoid the high gas fees of Ethereum and perform low-cost, fast transactions. This allows users to move assets efficiently while keeping costs down.
- Security: The Polygon bridge provides high security and reliability, ensuring the safe transfer of crypto assets.
Transaction speed
There is a difference of opinion regarding the TPS of Polygon.
The official TPS is 65,000, but according to ‘chainspect’, which is also featured in Forbes, the maximum theoretical value of the TPS of Polygon is 649 TPS, and the maximum measured value is 429 TPS.
This is probably due to the difference in measurement methods, as Polygon makes significant use of sidechain processing.
In any case, it boasts a high transaction volume on the network, including sidechains.
Hedera
Hedera has various unique features compared to other blockchain platforms, but the most prominent is its mechanism for solving the ‘trilemma problem’ that many other blockchains face.
Blockchain technology faces the ‘blockchain trilemma’, which states that it is difficult to optimise the three elements of scalability, security and decentralisation at the same time. With conventional blockchains, prioritising two of these elements tends to result in the sacrifice of the remaining one.
Hedera Hashgraph adopts a unique approach to solving this trilemma. Specifically, it achieves a good balance between each of the elements in the following ways
Scalability
- Hedera uses a proprietary ‘gossip-about-gossip’ protocol and ‘virtual voting’ algorithm to enable fast transaction processing. This allows it to process thousands to tens of thousands of transactions per second, achieving a significant throughput improvement compared to conventional blockchains.
Security
- Hedera uses a consensus algorithm with **asynchronous Byzantine fault tolerance (aBFT)**. This ensures that even if some nodes in the network are acting fraudulently, the overall security and reliability of the network is maintained.
Decentralisation
- Hedera has a governance council made up of companies from a variety of industries, including Google and IBM. This council carries out the operation and decision-making of the network in a decentralised manner, preventing control by specific organisations or individuals. This is a method that solves the problems of DAO structures that are at risk of existing 51% attacks.
With these features, Hedera Hashgraph solves the blockchain trilemma at a higher level, providing a decentralised ledger technology that is scalable, secure and decentralised.
In other words, Hedera Hashgraph can continue to expand the scale of the system semi-permanently in response to demand. Without compromising security or decentralisation!
Sponsors and project members for Polygon and Hedera
Polygon
Sponsors: Softbank Vision Fund, Sequoia Capital, Disney, Starbucks, Coca-Cola, SBI Holdings, Recochoku, etc.
Polygon (formerly Matic Network) has partnered with many large companies. The following is a list of the main sponsor companies and their outlines:
Starbucks
- An American coffee chain that launched the web3 experience ‘Starbucks Odyssey’ using Polygon in May 2023. Through this partnership, Starbucks will provide customers with more immersive and interactive experiences, and will be able to collect and trade digital assets.
Disney
- A major American media and entertainment company that has partnered with Polygon. Disney is developing a new project called Disney Accelerator that utilises crypto assets and NFTs.
- A social news website that has partnered with Polygon. Reddit is providing a platform called Collectible Avatars that allows users to purchase and trade content using NFTs.
Nike
- A global sportswear manufacturer, Nike has partnered with Polygon. Nike has launched the web3 platform ‘.SWOOSH’ and is developing new marketing strategies through NFTs.
These companies are leveraging the scalability and efficiency of Polygon to provide new digital experiences.
Hedera
Hedera’s Council members (Governance Council) are made up of some of the world’s most well-known large companies.
Google Cloud
- Role: Infrastructure support for the Hedera network. Google Cloud provides Hedera node operations and cloud solutions for decentralised applications (DApps).
- Background: Google is a company that provides a variety of cloud infrastructure services, and plays a role in supporting the reliability and scalability of Hedera.
IBM
- Role: Providing blockchain technology and AI solutions. Contributing to technical support for Hedera and the development of new blockchain applications.
- Background: IBM is a leader in blockchain and AI, and has a wide-ranging influence, particularly in the field of decentralised solutions for the enterprise.
Boeing
- Role: Focused on the use of distributed ledgers in the aviation sector, particularly supporting the development of technologies for supply chain management and data traceability.
- Background: Utilising highly reliable and secure blockchain technology for supply chain management in aircraft manufacturing.
Nomura Holdings
- Role: Supporting the development of tokenisation technology and decentralised finance (DeFi) solutions in the financial services industry.
- Background: Nomura is focusing on securitisation and investment products for decentralised assets through its investment banking business.
Deutsche Telekom
- Role: Infrastructure support and node operation in the telecommunications sector. Contributing to the decentralisation and robustness of the Hedera network.
- Background: A major telecommunications provider in Europe, contributing to the development of blockchain applications in the telecommunications sector.
DLA Piper
- Role: Legal and regulatory advisory. Helping to develop a legal framework for decentralised technologies.
- Background: A global law firm, contributing to the establishment of blockchain regulation and legal governance.
ServiceNow
- Role: Supporting business workflows and digital transformation. Involved in the development of a decentralised workflow solution on Hedera.
- Background: A leader in workflow automation, working with Hedera to promote the efficiency of distributed business processes.
Chainlink Labs
- Role: Providing an oracle service for blockchain. Supplying smart contracts with reliable external data.
- Background: Has a track record in distributed oracle networks, and is supporting the use of smart contracts on Hedera.
In addition, the Hedera Hashgraph Council includes members from educational institutions (e.g. University College London), telecommunications companies (e.g. Zain Group), and various other fields, who contribute to the governance and use of Hedera technology in their respective fields of expertise.
Project and system names that use Polygon and Hedera
Polygon
Projects using it: Aave, Sushiswap, Decentraland, OpenSea, etc.
Polygon (formerly known as Matic Network) is used by many projects and systems. The main ones are as follows:
- Decentralised Exchanges (DEXs): Popular DEXs that run on Polygon include QuickSwap and JellySwap. These platforms are designed to allow users to trade crypto assets safely and efficiently.
- Derivatives platforms: The Aavegotchi project supports derivatives trading on Polygon, allowing users to trade with leverage and swaps.
- Gaming platform: Game projects such as Decentral Games (operating within Decentraland) use Polygon to manage NFTs and in-game currencies. This allows players to securely store items and assets within the game.
Hedera
As of November 2024, Hedera Hashgraph is being used in a wide range of fields, and the following major projects and systems exist.
Games and entertainment
- Earthlings.land : An NFT metaverse online game currently under development on Hedera Hashgraph. Set in the Earth of the future, hundreds of years from now, players can enjoy a variety of elements such as exploration, production, breeding, battle, reasoning, shooting, pioneering, construction, city management, and job simulation , etc.
- Ubisoft: Ubisoft, a global game development company, is using the Hedera network to tokenise in-game items and support player-to-player transactions, and is working to create a new game ecosystem.
Financial Services
- Shinhan Bank: A major bank in South Korea, Shinhan Bank is using Hedera technology to enhance its international money transfer system, increasing transfer speed and reducing fees.
- Standard Bank: Africa’s largest bank, Standard Bank is using Hedera to improve the efficiency and transparency of cross-border payments.
Digital Identity
- FIS (Fidelity National Information Services): FIS, a financial technology services provider, is using Hedera to enhance digital identity management and authentication, improving security and user experience.
- DLA Piper: DLA Piper, an international law firm, is using Hedera to digitally certify and manage legal documents, improving operational efficiency and enhancing security.
Healthcare
- SAFE Health Systems: SAFE Health Systems, which manages and shares medical data, uses Hedera to securely manage and access patient data, contributing to improved quality of medical services.
- The Chopra Foundation: The Chopra Foundation, which aims to promote health and wellness, uses Hedera to manage and analyse mental health data, helping to provide personalised health solutions.
These examples show how Hedera Hashgraph’s high throughput, low latency, and security characteristics are being used to provide practical solutions in a variety of industries.
Polygon and Hedera FAQs
Q1: What are the main differences between Polygon and Hedera?
A1: The main differences are clear in various design concepts and technical features, such as 1. underlying technology and architecture, 2. consensus algorithms, transaction speed and throughput, and smart contract compatibility.
Q2: Which blockchain is recommended for beginners?
A2: For beginners, Polygon is considered to be more suitable. The reasons are as follows
1. Well-developed developer community and resources
Polygon is highly compatible with Ethereum and has a large number of developers participating. As a result, there is a wealth of learning materials and tutorials, and an environment has been created where even beginners can easily obtain information.
2. Variety of tools and support
Polygon is compatible with existing Ethereum tools and frameworks, making it easy to build a development environment. There is also an active community, and it is easy to get support when solving problems.
3. Low transaction fees
Polygon has low transaction fees, which reduces the cost burden for beginners when they are experimenting and making mistakes.
Hedera is also an excellent platform, but it uses its own hashgraph technology, and the learning curve may be a little steep. Therefore, it is a good idea to first learn the basics of blockchain development with Polygon, and then try other platforms such as Hedera.
In other words, Hedera Hashgraph uses its own hashgraph technology and has different characteristics to other blockchain platforms. For this reason, developing on Hedera may require specific knowledge and skills.
On the other hand, Polygon is highly compatible with Ethereum and has a wealth of existing tools and resources, so it is a relatively easy environment for beginners to get started with.
Therefore, Hedera is more suited to developers with advanced technical skills.
The latest trends in Polygon and Hedera in 2024
Polygon
Background and purpose of the transition to POL
On 4th September 2024, Polygon transitioned its native token from MATIC to POL. This transition was part of the Polygon 2.0 roadmap and aimed to position POL as the main token for the entire Polygon network.
Key changes
- Easing of the issuance cap:
- The maximum issuance limit for MATIC was set at 10 billion, but this limit has been abolished for POL, and new issuance will now be carried out at an annual inflation rate of 2%. Of this, 1% will be used as staking rewards, and the remaining 1% will be stored in the treasury for the community.
- Upgrade potential improved:
- As the upgrade key for MATIC was burned, it was difficult to add new features, but with the transition to POL, it will be possible to upgrade in line with future changes to the ecosystem.
- Multi-chain validation:
- POL uses multi-chain validation to enhance the security of multiple blockchains within the ecosystem and to allow for the efficient acquisition of rewards.
Transition Process
- Polygon MATIC holders on PoS: No special action is required as they will be automatically converted to POL.
- Ethereum and Polygon MATIC holders on zkEVM: They will need to upgrade to POL manually, but there is a grace period of about 4 years for the transition.
Impact and Outlook
The transition to POL is expected to make Polygon’s token economy more flexible and scalable, and to strengthen the growth of the community and the security of the network.
Growth and Innovation
In the second quarter of 2024 (April to June), the number of people using Polygon increased significantly. Specifically, 1.2 million people use Polygon every day, and the number of transactions per day has reached 4.1 million.
This shows that Polygon is a convenient and easy-to-use platform for many people. New technologies introduced include zkEVM and Polygon ID, which are designed to improve transaction privacy and scalability.
Technical Developments
Polygon is using a technology called zkEVM (Zero-Knowledge Ethereum Virtual Machine) to improve transaction privacy and scalability. zkEVM uses zero-knowledge proof technology to prove the validity of transactions without revealing the details of the transaction.
In addition, the technology called Polygon ID is used to allow users to securely manage their own data. These technologies are designed to make Polygon a safer and more efficient platform.
Hedera
The 2024 HelloFuture Hackathon
The 2024 HelloFuture Hackathon was held from July 22 to August 20, with developers from around the world competing with innovative projects on the Hedera platform. With a total prize pool of over $350,000, a diverse range of projects were presented in tracks such as AI, DeFi, and RWA tokenisation.
Overall Winner:
- 1st Place: Savera
- Summary: A blockchain wallet and platform that supports communities with limited access to financial services.
- Team: Luis Eduardo Arevalo Oliver, Alejandro Sanchez Gutierrez, Victor Alonso Altamirano Izquierdo
- Prize: $45,000 + $5,000 in Google credits
- 2nd place: Nomid
- Summary: A solution that provides instant, low-cost, secure peer-to-peer payments by eliminating the middleman.
- Team: Milan Wiercx van Rhijn, John Kroening, PMB
- Prize: $25,000 + $3,000 in Google credits
- 3rd place: Credore
- Summary: Promoting the digitisation of trade documents, providing MLETR-compliant electronic bills of lading and tokenisation.
- Team: Lingraj Mahanand
- Prize: $15,000 + $2,000 in Google credits
This hackathon demonstrated the potential for Hedera technology to create innovative solutions in a variety of fields. Participants used Hedera’s capabilities in a variety of fields, including AI integration, tokenisation, and payment systems, to tackle real-world problems.
The Nairobi Stock Exchange (NSE), Kenya’s main stock exchange, officially joined the Hedera Council
On 30th October 2024, the Nairobi Stock Exchange (NSE), Kenya’s main stock exchange, officially joined the Hedera Council. With this, NSE aims to leverage Hedera’s decentralised network to accelerate the tokenisation of securities in Kenya’s capital markets.
NSE’s role and background:
- 70th Anniversary: In 2024, the NSE will celebrate its 70th anniversary as the leading securities exchange in Kenya, providing access to Africa’s economic growth for local and international investors and issuers.
- Market Performance: In the first nine months of 2024, the NSE recorded the best performance in Africa in the Morgan Stanley Capital International (MSCI) rankings, earning the trust of investors.
Significance of joining the Hedera Council:
- Promoting tokenisation: The NSE plans to use Hedera’s secure, transparent and scalable technology to accelerate the adoption of digital assets and tokenised securities.
Comment from stakeholders:
- Frank Muwiti (NSE CEO): ‘Through our participation in the Hedera Council, the NSE will be able to accelerate the adoption of digital assets and tokenisation of securities. This is in line with our strategic priority of offering innovative financial products.‘
- Bill Miller (Co-Chair of the Hedera Council Membership Committee): ’NSE’s participation is an important step in accelerating Hedera adoption in African markets. Kenya is one of the largest economies in sub-Saharan Africa, and the NSE’s broad reach demonstrates that Hedera is a foundational technology for global capital markets.”
The partnership is expected to leverage Hedera’s technology to drive the adoption of digital assets and the tokenisation of securities in Kenya’s capital markets, providing new opportunities for investors and issuers.
Canary Capital Files First Hedera HBAR Spot ETF with SEC
On 12 November 2024, Canary Capital filed an application with the US Securities and Exchange Commission (SEC) for a Hedera (HBAR) spot exchange-traded fund (ETF).
This is the first application for a spot ETF targeting HBAR. Steven McCrug, the founder of Canary Capital, said that the application was made against the backdrop of developments in the regulatory environment and the growing interest of investors in a diverse range of crypto assets.
The company has previously applied for spot ETFs targeting XRP, Solana, and Litecoin, and is continuing its efforts to expand access to the crypto asset market.
STEAM RUNNER Official Release (Earthlings.land)
Apart from the main PC online game, the mobile game ‘STEAM RUNNER’ was officially released on 15 November 2024.
You can play and earn STEAM tokens and WATER tokens.
Developer and Fan comments for Polygon and Hedera
Polygon
Developer A
「…
KfW issues bearer bond on Polygon as part of ECB trials
“This trial allows us to test automated cash settlement and DvP transactions for blockchain-based digital bonds.”
Over 60 financial institutions have now participated in the trials.
…」
Fan B
「Polygon could easily become the next meme hub powerhouse.Low txn fees, stable network, solid communities.And it’s already proven its self time and time again to be able to handle the heat with polymarket, reddit collectibles etc etc.Think bigger, think $POL」
Developer C
「@INX_Group and @BackedFi are expanding their offerings on the @0xPolygon network by announcing new token listings, following the successful launch of tokenized @nvidia
The #INX platform will launch its first tokenized ETF, the S&P 500 ETF (bCSPX), along with tokenized Apple and BlackRock’s iShares Treasury ETFs, expanding the range of digital financial products available for non-U.S. investors.
… 」
Hedera
Developer D
「BREAKING: SpaceX is sending a satellite powered by HBAR to space this January after NASA research paper on Hedera
After Hedera’s partner in the @DeRecAlliance, Cardano founder @IOHK_Charles visited @elonmusk’s SpaceX HQ in Hawthorne yesterday, it was announced on Swiss national television today that WISkey and @SpaceX are sending HBAR to space in January.
A satellite powered by Hedera will facilitate transactions of cryptocurrency in space.
Potentially paving a way for future satellite-to-satellite payment networks that might redefine transactions across earth and space.
…
Source: Swiss National Radio Television」
Developer E
「We’re excited to announce the launch of STEAM RUNNER from @earthlingsland , a Play-to-Earn (P2E) mobile add-on game that enables gamers to earn the STEAM token on the @Hedera network 」
Fan F
「The future is onchain, the future is on @Hedera 」
Summary and Conclusion of Polygon and Hedera
Polygon is an excellent blockchain platform, and Hedera is also a decentralised network system that is attracting attention for its implementation of an algorithm that solves the trilemma problem faced by existing blockchains, and is being adopted by major companies and large-scale main systems around the world at a rapid pace.
Each has its own unique advantages and features. When considering these as candidates for a decentralised network to purchase or develop, please carefully examine the following indicators at a minimum.
- Transaction speed
- Transaction cost
- Expansion of the ecosystem
- Scalability
- Security
- Energy consumption (electricity consumption kWh per transaction)
- Sharding availability (clustering availability)
- Implementation schedule for quantum resistance
- Compatibility with various systems
- Cross-chain specifications (bridge function), etc.
It would be a good idea to analyse the future potential of Web3, and also to consider political influence and speculation, as well as funding and the sponsor companies that support them.
2025 is almost here, and both polygon and hedera will have another year of rapid growth!
Keep an eye on future developments!
If you want to know more about Polygon and Hedera, please see the following.
Polygon info.
polygon.technology
Hedera info.
Hedera Team – DEV Community
hedera.com
Thank you for reading!
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