- Advantages of using Polygon and QuickSwap
Dan Pavel Sinkovicz
Just now·4 min read
There are many uncertainties in life, but knowing that Ethereum has scaling issues due to its exuberant gas fees is not one. The plethora of dApps that run on this network is just as enormous as its gas fees. From the ever-popular Decentralized Exchange Uniswap to the beloved Borrowing and Lending platform Aave, the Ethereum network is booming and continuing to do so at an alarming rate.
All these dApps, plus the other blockchains built on the Ethereum Network, wouldn’t be alarming if the chain had more transaction throughput and thus lower transaction costs. Because of these reasons, scaling solutions projects started to emerge. The most popular, robust, purpose-built, and extensive project on this front is Polygon and its Uniswap copy Decentralized Exchange called QuickSwap.
Polygon X QuickSwap
First and foremost, why is Polygon the most popular project on the Ethereum scaling solutions front? While other projects such as OMG Network, Arbitrum, or Optimism focus on a single scaling solution, Polygon aims at offering every possible scaling solution under the same umbrella. Therefore, the same SDK (software development kit) can provide multiple scaling solutions. Here is a list of significant advantages Polygon has over its competition.
- Layer 2, built on Ethereum (enhanced security): Plasma Chains, Zero-Knowledge Rollups, and Optimism Rollups.
Sidechains, built on other self-sovereign chains (enhanced transaction throughput, low fees): Polygon Network, Skale, POA Network, xDai, and others.
For example, a dApp such as QuickSwap will want to take advantage of the Polygon Network sidechain. It is secure enough while the transaction throughput is high and fees low. On the other hand, a platform like Aave locks billions of assets in smart contracts. Ideally, it should have the maximum security available. The users can accept a slower and more costly transaction but must not lose their funds. Thus, it utilizes a layer 2 scaling solution.
As they say, Polygon is Ethereum’s Internet of Blockchains. Polygon can interconnect different blockchains built using their SDK. Not only that, but Polygon also offers an external bridge to the Ethereum network to which any blockchain built on their SDK can connect.
As stated before, Ethereum has a plethora of dApps built on the network. These dApps can use Polygon’s scaling solutions to their advantage. Thus achieving higher transaction throughput and lower fees.
Clients’ business requirements can change. Polygon offers them the ability to pivot from one scaling solution to another in an effortless manner. Also, they can utilize different scaling solutions based on the dApps they are building.
The idea behind cloning Uniswap on Polygon is to access the same AMM experience on Polygon. An Automated Market Maker, in conjunction with the liquidity pools, and liquidity providers, creates a new decentralized alternative to centralized exchanges.
Users must bridge ERC-20 tokens to the Polygon Network before being able to exchange them on QuickSwap. QuickSwap has seen a growth in popularity and volume due to the following reasons.
In comparison to Uniswap, because the token exchange happens on Polygon, the transaction fees are dirt-cheap. As stated before, one of Ethereum’s main problems is the insane transaction fee. Once the user bridges the tokens from Ethereum to Polygon, they can exchange them for other coins at much lower prices.
In addition to those sweet dirt-cheap fees, the transactions are processing quicker (hence the name).
A colossal barrier greets small retail investors — transaction fees. They either sacrifice a significant portion of their assets or do not use DeFi at all. Fortunately, Polygon offers them a new chance to taste the world of Decentralized Finance, starting with the most popular dApp — a decentralized exchange.
Ethereum’s high gas fees and slow transaction speeds are a thing of the past. By using QuickSwap in conjunction with Polygon, users can enjoy what they’ve been craving for, for a long time.
Other Decentralized Finance dApps such as Aave and Sushiswap are already working on Polygon. Slowly, but indeed, all the DeFi dApps found on Ethereum are going to bridge to Polygon, thus creating the Ethereum DeFi ecosystem on a sidechain, enjoying lower fees and faster transaction speeds.
Polygon is becoming THE go-to project for Ethereum scaling solutions. As other scaling solutions appear, Polygon is looking to expand and integrate these into the ecosystem. Thus, competitors focusing on only one or a few scaling solutions are going to fall behind.
- Date of publication:
- Wed, 11/24/2021 - 13:32
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