Polygon vs Algorand – What’s the Difference?
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Investing in cryptocurrencies is a gamble.
Digital assets can either make you rich overnight or deprive you of all your wealth.
Before investing in any asset, it is always wise to dig deep and be aware of even the minutest details.
Crypto enthusiasts reach a point where they cannot decide between two assets. In such cases, they need to compare the two assets of choice.
This is our task for today. In this article, we will compare Polygon and Algorand, two of the most sought-after cryptocurrencies today.
Before we dive into all the points differentiating the two assets we will first have a separate look at both assets.
We will start with Polygon.
What is Polygon (MATIC)?
The world is transfiguring at a supernatural pace. Every day, new sectors and industries are incorporating Blockchain technology into their systems, aiming to become decentralized. New establishments are launching decentralized apps (dApps) where users can actively trade crypto and NFTs.
Have you ever wondered how these dApps are created?
Some platforms provide the necessary tools and services for the creation of dApps. Polygon is one Ethereum-based platform that permits the creation, management, and operation of decentralized apps and layer 2 solutions. DApps created via Polygon have immediate transaction finality.
Like every other crypto firm, Polygon has a native governing token, MATIC. The token has countless use cases. Mainly, it is used for the payment of different kinds of fees and transactions on the platform.
What Is Algorand (ALGO)?
The framework of Algorand was laid down by an MIT professor, Silvio Micali, along with a group of adept mathematicians, researchers, cryptographers, and economists from around the world.
Silvio aspires to create a decentralized, scalable, and secure digital economy. He and his renowned group of experts founded Algorand, a permissionless pure proof-of-stake Blockchain protocol to achieve this end.
The Algorand Blockchain has a unique consensus protocol based on the concept of ‘crypto-economics’—this consensus protocol merges cryptography, game theory, and distributed systems.
Algorand was created to provide users and investors with a platform to enjoy secure, swift, and seamless digital transactions. The inbuilt system of Algorand allows it to process innumerable transactions each second while ensuring that scalability, efficiency, and security remain its cardinal traits.
Differences between Polygon and Algorand
Polygon and Algorand are two crypto firms designed for different purposes and catered to the needs of a distinct population.
Here is a list of the differences between the two assets:
- Algorand caters to establishments seeking an open source proof-of-stake Blockchain that is scalable, decentralized, and secure from cyber-attacks. Polygon, however, fulfills the needs and requirements of developers who intend to create decentralized apps and layer 2 solutions.
- Many platforms like SaaS/ Web, iPhone, iPad, and Android support Algorand, while Polygon can only be accessed on SaaS/Web.
- Online support is provided to the users for any issues they may face by the management at Algorand, while Polygon does not offer any support for its services.
- Algorand provides Application Programming Interface (API) for its users, while Polygon does not provide API for its community members.
- The circulating supply of the MATIC token is 8,734,317,475, and the total supply is 10,000,000,000. On the other hand, the LAGO token has a circulating supply of 7,115,332,348 and a maximum supply of 10,000,000,000.
- Polygon was founded in 2017 in India while Algorand is a firm in the United States.
- Competitors of Algorand are Ankr, Aptos, Avalanche, Cosmos, and Ethereum while OpenSea, Aave, Accumulate, Raiden Network, and Meter are the competitors of Polygon.
- Algorand is linked with 45 different crypto entities and wallets, including Apex Crypto, ZenLedger, and Blockchain.com. Alternatively, Polygon is integrated with 286 crypto platforms.
- Algorand aids developers in coming up with layer 1 solutions, while Polygon offers the creation of layer 2 solutions.
- Today, Polygon has a market capitalization of around $10 billion and ranks 9 among all cryptocurrencies. Algorand, on the other hand, has a market capitalization of $1 billion and ranks number 37.
Similarities between Polygon and Algorand
Although the two firms are poles apart from each other, they still have a few similar features:
- Both firms are open-sourced.
- Algorand and Polygon promote the development of decentralized apps and the minting of new crypto.
- Environmental preservation is of crucial importance. Algorand disregards mining and thus has had an extended standing carbon-negative network. Polygon has recently converted from a carbon- neutral to a carbon negative platform. Both firms currently stand as flag bearers of environmental preservation.
- Both firms are less than a decade old, being launched in 2017.
- Algorand and Polygon permit smart contract creation.
Tokenomics of Polygon
The MATIC token has two primary uses. It is used for:
- Payment of transaction fees and taxes.
- As rewards for users who stake validator nodes.
MATIC has a maximum supply of 10 billion tokens, of which 8 billion are currently in circulation. The remaining 2 billion will be released at specific intervals over 3 to 4 years. The breakup of the initial MATIC token supply was as follows:
- 23.3% is reserved for the ecosystem
- 21.9% is reserved for the foundation
- 19.0% is reserved for the Binance Launchpad
- 16.0% is reserved for the team
- 12.0% is reserved for staking rewards
- 4.0% for the advisors
- 3.8% for the private sale
Tokenomics of Algorand
The ALGO token is the native token of Algorand. The token is used for the following:
- Payment of transaction fees and taxes
- Governance of the ecosystem
ALGO will serve as a governing token, meaning that holders of this token will have a say in the legislative and executive matters of the Blockchain. However, the widespread use of this token to govern the platform has yet to begin.
Of 10 billion ALGO tokens, 25% have been allotted to Algorand Inc., a state-of-the-art tech firm. Algorand Inc. will sell these tokens at specific times that have been decided beforehand. The monetary value obtained from the sale will be utilized to meet the firm’s needs. The remaining 75% of the maximum supply will be allocated to the Blockchain.
Following is the Token supply distribution of ALGO:
- 30.0% is reserved for Public Sale
- 25.0% is reserved for Team, Foundation, and Investor
- 25.0% is reserved for Node Running Grant
- 17.5% is reserved for Participation Rewards
- .5% is reserved for End User Grants
Accomplishments and Ongoing Projects of Polygon
Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun laid down the structure of the Polygon. Since its inception, the polygon network has aimed for a decentralized world without unnecessary regulations. With each passing day, the firm is nearing its goal of transfiguring the world.
The migration of prominent projects to the Polygon blockchain marked the end of 2022. These include:
- Two renowned Solana NFT platforms
- Korea’s famed metaverse platform, OrbCity
The arrival of these giants to the polygon blockchain will promote activity on the Blockchain and, simultaneously, will allure new users to the platform.
Polygon, in close association with Mastercard, plans to educate new artists on the art of using Blockchain, minting NFTs, and organizing metaverse events on the polygon blockchain. Individuals schooled under this ‘Artist Accelerator program’ will bring life to the Blockchain once they launch NFT collections and host metaverse concerts.
The ongoing recession in the crypto market did not affect the Polygon NFT marketplace. While its counterparts saw a decline in sales, Polygon attained a record sale of $300,000 at the start of 2023. Moreover, the number of NFT collections and holders witnessed a significant improvement in the last days of 2022.
Accomplishments and Ongoing Projects of Algorand
Since its advent in 2019, the Algorand blockchain has grabbed the attention of governments, corporations, and new startups. Koibanx, a leading financial infrastructure provider, has recently announced that it has signed a deal with El Salvador, under which the firm will design a blockchain platform on Algorand.
The Colombian government has created ‘VitalPass’, a unique passport issued to people who have received the Covid-19 vaccination. The Algorand Blockchain will serve as a reservoir for the data related to VitalPass. What’s more, the Marshall Islands have decided to use Algorand to launch their first digital currency.
Loan Venkatapen, co-founder and manager of Blocklabs Capital Management, states, “Algorand is one of the most professional projects in the crypto ecosystem.”
Both Polygon and Algorand are entirely different crypto assets.
Polygon focuses on providing tools for creating dApps, and Algorand, on the other hand, provides an open-source proof-of-stake blockchain for firms looking to store, manage, and protect their data.
The editorial content of OriginStamp AG does not constitute a recommendation for investment or purchase advice. In principle, an investment can also lead to a total loss. Therefore, please seek advice before making an investment decision.