Polygon Vs. Cosmos
Polygon and Cosmos are two altcoins that bring different solutions to increase efficiency on the Ethereum network. Both provide innovative solutions to scalability, security, and user experience for dapps and services on the blockchain.
What is Polygon?
Polygon (MATIC) is one of the most popular blockchains and has been billed as “Ethereum’s internet of blockchains.” It has grown rapidly and is used by developers to build Ethereum-compatible blockchains.
Polygon supports Ethereum-based blockchains by optimizing several pain points that developers face. Despite Ethereum’s vast benefits, the network is plagued by consistently high gas fees and a low transaction rate of only 12-15 transactions per second.
It supports side chains which makes it possible for developers to offload gluts of data from Ethereum’s main chain onto Polygon’s proof-of-stake chain, thus increasing efficiency.
Polygon started as Matic Network and was a Layer 2 solution to Ethereum. Since then, Polygon has become a massive network infrastructure that supports scaling, security, and sovereignty.
Projects built on Polygon include:
TokenPocket: a non-custodial wallet that allows users to stake and swap tokens on multiple blockchains.
Balancer: an Automated Market Maker (AMM) that pairs coins and tokens into what they call “compositions”.
DexGuru: a one-stop-shop for many different kinds of swaps with trading charts covering a wide range of the defi world.
Quickswap and AAVE are two defi service providers operating on Polygon.
What is Cosmos?
Cosmos (ATOM) is similar to Polygon in that it is also an ecosystem of connected blockchains focused on solving the biggest challenges in the blockchain.
Known as “Blockchain 3.0”, Cosmos connects disparate blockchains to create interoperability and communication through its Cosmos Hub.
Its Inter-Blockchain Communication (IBC) protocol drives the Cosmos Hub and is the industry standard for blockchain interoperability. The IBC supports decentralized exchanges, interchain security, and multi-account management for users.
Projects built on Cosmos include:
Osmosis: a blockchain proof-of-stake system that professional stakers can use to secure the Cosmos network from hacks.
Juno: an open-source platform to interconnect smart contracts and their actions and procedures.
Regen Network: a proof-of-stake blockchain that verifies ecological data to monitor and report environment status around the world.
Similarities
Cosmos and Polygon work to solve Ethereum’s major challenges: scalability, low throughput, and a subsequent poor user experience.
Both make it easier for developers to build on the Ethereum network without the hassles that come with building on Ethereum’s main chain.
Connecting independent blockchains, making it possible for chains to interoperate with each other.
Each runs a proof-of-stake mechanism.
Differences
Cosmos
Amplifies inter-communication between chains.
Optimizes and secures throughput transfers via the IBC.
Mainly supports interoperability and interchain communication.
Polygon
Works like an amplified Layer 2 to balance Ethereum’s scalability issues.
Offsets data payloads onto its own network to alleviate Ethereum network congestion and increase throughput.
Mainly supports scalability.
Market comparison response
It appears that the market sees different use cases for these two cryptos, divided along the lines of scalability and interoperability.
In terms of market price, Cosmos is the clear winner. The ATOM coin is trading around $9.00 with a market cap of $2.5 billion, while Polygon’s MATIC is trading around $0.50 with a market cap of $4 billion, at press time.
However, when looking at market adoption, Polygon is the clear winner hosting over 7,000 dapps compared to Cosmos’ 265 dapps and services. Most recently, Polygon landed a partnership with Reddit
Though Polygon and Cosmos are not the only blockchains working to ease Ethereum’s woes, they are the two biggest players to address the issues. Both are successfully tackling enormous challenges that could not have been foreseen when Ethereum was first launched.
Even after the Ethereum merge to its proof-of-stake mechanism, Ethereum’s gas prices will not decline. This is another major challenge that Cosmos and Polygon will both continue to solve moving forward.
Beyond the importance of supporting Ethereum, however, both Polygon and Cosmos know that what they are building is the infrastructure necessary for the market to fully adopt web3 technology.
