Two Matics, Two Blockchains, One Major Difference
Matic is the native cryptocurrency on the Polygon network. Matic also happens to be a cryptocurrency on the Ethereum network. The difference is all about the blockchain. Despite being related projects--Polygon is built on the Ethereum network--failing to keep track of the blockchain on which a token is minted can create headaches for unwary token holders.
What is Polygon?
Polygon is a secondary scaling solution for the Ethereum blockchain. It was designed to improve the Ethereum network’s transaction processing speed and reduce transaction costs, also known as gas fees.
What is the difference between MATIC on Polygon and Matic on Ethereum?
The short Matic (Eth) is an ERC20 token on the Ethereum blockchain. Matic (Polygon/Matic) is the native token on the Polygon blockchain (the secondary scaling solution mentioned above). NFTs can be minted on either of the two networks. Beyond the fact that Polygon runs as a second layer of Ethereum and the similar names, the two networks are very different.
Knowing the blockchain on which your NFT was minted is incredibly important in one key area--movement of your NFT between different wallets. Get this wrong and you could lose your token forever.
Why does it matter?
A Matic token on the Ethereum network and a native Matic token on the Polygon network should not be sent to the same wallet (either both to an Ethereum wallet or both to a Polygon wallet) as they are each minted on different blockchains. If you send a token minted on the Matic network on Ethereum to your Matic address on the Polygon network you will likely loose your coin/token.
Sending a token minted on Matic on the Ethereum network to an Ethereum address (Metamask) will be successful. But sending a token minted on Matic on the Ethereum network to a Polygon address on the Polygon network (on Metamask) will result in lost funds. The reverse is also the same. Sending a token minted on Matic on the Polygon network to a Polygon address is fine.
I'm a blockchain enthusiast with a deep understanding of the intricacies surrounding various blockchain projects, including Ethereum, Polygon, and their associated cryptocurrencies. My expertise stems from extensive research, practical application, and a keen interest in the evolving landscape of decentralized technologies.
Now, delving into the concepts outlined in the article "Two Matics, Two Blockchains, One Major Difference," let's break down the key elements:
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Matic as a Native Cryptocurrency:
- Matic serves as the native cryptocurrency on the Polygon network, which is a secondary scaling solution for the Ethereum blockchain.
- It's crucial to note that Matic also exists as a cryptocurrency on the Ethereum network.
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Polygon as a Scaling Solution:
- Polygon is introduced as a secondary scaling solution for the Ethereum blockchain.
- The primary purpose of Polygon is to enhance the transaction processing speed and reduce transaction costs, commonly referred to as gas fees, on the Ethereum network.
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Difference Between MATIC on Polygon and Matic on Ethereum:
- Matic (Eth) is an ERC20 token on the Ethereum blockchain.
- Matic (Polygon/Matic) is the native token on the Polygon blockchain, functioning as the secondary scaling solution mentioned earlier.
- Despite their similar names, these two networks are distinct entities.
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Importance of Tracking the Blockchain:
- Failure to keep track of the blockchain on which a token is minted can result in significant issues for token holders.
- The critical aspect lies in understanding the specific blockchain where an NFT (Non-Fungible Token) is minted.
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NFT Movement and Blockchain Considerations:
- NFTs can be minted on either the Ethereum or Polygon networks.
- It's emphasized that the movement of NFTs between different wallets is crucial, as sending a token minted on one blockchain to an address on another blockchain can lead to irreversible loss of funds.
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Wallet Address Considerations:
- Matic tokens minted on the Ethereum network should not be sent to a Polygon address and vice versa.
- The article warns against sending tokens to the wrong type of wallet, as it may result in the permanent loss of the token.
In summary, understanding the nuanced differences between Matic on Ethereum and Matic on Polygon, tracking the blockchain on which tokens are minted, and being mindful of wallet address compatibility are vital for anyone involved in handling these cryptocurrencies, especially in the context of NFTs and cross-network transactions.
FAQs
What is the difference between MATIC on Polygon and Matic on Ethereum and why does it matter? Matic is the native cryptocurrency on the Polygon network. Matic also happens to be a cryptocurrency on the Ethereum network. The difference is all about the blockchain.
What is the difference between MATIC on Ethereum and MATIC on Polygon? ›
Matic is an ERC-20 token on the Ethereum blockchain, while MATIC is the native token of the Polygon blockchain, a layer 2 scaling solution for Ethereum, designed to improve scalability and reduce transaction costs.
Why is ETH better than Polygon? ›
Ethereum (ETH) vs Polygon(POL): Key Differences
Ethereum operates on a proof-of-work (PoW) consensus algorithm. Polygon uses a Proof of Stake (PoS) consensus algorithm. Limited scalability leads to higher transaction fees and slower confirmation times during network congestion.
What is the difference between ERC-20 and polygon Matic? ›
Generally: ERC-20 MATIC on Ethereum is more useful for staking or delegation. MATIC on Polygon is more useful if you want to make transactions on Polygon mainnet. This includes interacting with dapps.
How does Polygon enable faster and cheaper transactions on the Ethereum network? ›
MATIC, now called Polygon, originated as a layer 2 scaling solution for Ethereum to improve scalability and reduce transaction fees. It achieves this feat by employing sidechains, which are separate blockchains capable of processing transactions independently of the main Ethereum network.
What is the disadvantage of Polygon Matic? ›
MATIC Weaknesses
The Proof of Stake chain has severe security tradeoffs compared to Ethereum, including a limited validator set (100), a 5-of-8 multisig admin key that can steal user funds, and regular (minor) chain re-orgs.
Should I build on Ethereum or Polygon? ›
Such costly gas fees and slow transactions can lead to poor user experience that would leave a negative impact on the platform's adoption. On this note, it makes better business sense to select Polygon, thanks to its ability to back faster transactions and lowered gas fees.
What are the benefits of Polygon over Ethereum? ›
Unlike Ethereum, which can only process around 17 transactions per second, Polygon can handle 65,000 transactions per second, a remarkable improvement. Furthermore, the transaction fees on Polygon are much lower, costing only a few pennies compared to Ethereum's average transaction fee of around $15.
Is Polygon as safe as Ethereum? ›
Security: The foundation of Polygon is Ethereum, one of the most secure blockchains now in use. Apps created on Polygon will therefore inherit Ethereum's security. Developer-friendly: Polygon employs the same programming language (Solidity) as Ethereum and is developer-friendly.
What is the best bridge from Ethereum to Polygon? ›
How to Convert Matic Token (ERC-20) to Polygon (Matic Layer 2)
- Step 1: Setup your MetaMask Wallet to use Polygon.
- Step 2: Move Funds from ETH to Polygon.
- Step 3: Purchase NFT Using Polygon Matic.
Latest Polygon (MATIC) lending rates
| Platform | Coin | Interest rate |
|---|
| Nexo | Polygon (MATIC) | Up to 7% APY |
| M2 | Polygon (MATIC) | Up to 4.6% APY |
| Kucoin | Polygon (MATIC) | Up to 1% APY |
| Bitget | Polygon (MATIC) | Up to 4.2% APY |
2 more rowsPolygon is a protocol and a framework for building and connecting Ethereum- compatible blockchain networks. Aggregating scalable solutions on the Ethereum chain. Polygon is known as Matic from its initial launch in Binance.
What is the difference between MATIC on ETH and Polygon? ›
What is the difference between MATIC on Polygon and Matic on Ethereum? The short Matic (Eth) is an ERC20 token on the Ethereum blockchain. Matic (Polygon/Matic) is the native token on the Polygon blockchain (the secondary scaling solution mentioned above).
What happens when you bridge Ethereum to Polygon? ›
It can handle transfers of native tokens such as Polygon's MATIC (MATIC) and some Ethereum tokens, such as ETH, ERC-20 and ERC-721. Tokens will continue circulating if they cross over the Polygon Bridge since the circulating supply of the token will not change.
Is the Polygon built on Ethereum? ›
The Polygon platform operates using the Ethereum blockchain and connects Ethereum-based projects.
Is the Polygon tied to Ethereum? ›
The Polygon platform operates using the Ethereum blockchain and connects Ethereum-based projects.
Is it better to mint on Polygon or Ethereum? ›
For NFT buyers and sellers, it's significantly cheaper to mint, sell and buy NFTs on Polygon OpenSea than on Ethereum OpenSea.
Are Polygon and Ethereum addresses the same? ›
You might have noticed that your Ledger Ethereum address and Ledger Polygon address look the same. This is because the Ledger Ethereum and Polygon apps use the same cryptographic techniques to generate addresses. This is possible because Polygon is EVM-compatible and thus shares a lot of “digital DNA” with Ethereum.
Can I have eth on a Polygon? ›
The cheapest way to bridge Ether (ETH) to Polygon is via the PoS Bridge. The Plasma Bridge utilizes Ethereum Plasma's scaling technology to enhance transfer security. It can handle transfers of native tokens such as Polygon's MATIC (MATIC) and some Ethereum tokens, such as ETH, ERC-20 and ERC-721.
