Ethereum scalablity issues
Ethereum's high transaction fee is probably the only thing that stops it from being THE best blockchain out there. High fees make it very difficult and painful for users with small capital as often times the fee itself is estimated to be higher than the amount put in the transaction.
The reason for such high fee is the congestion of the network. With a lot of transactions in queue, the miners will select the one which gives them the highest gwei per operation. Users will not want to wait for hours for their transaction to be picked up and hence will increase their proposed value for faster transactions. This builds up the fee and is the reason why the average transaction fee reached the ATH (all time high) price of $71.72.
If the network become less congested, the gas fee would lower. This is where Layer 2 solutions step in. The most adapted of the solutions is Polygon.
Polygon (previously known as MATIC) can be thought of as a framework which provides developers with a set of abstract layers that they could choose from to scale their DApps (Decentralized Applications). The reason for Polygon is the most preferred is because of a great set of features they bring to the table.
- Users can move all your tokens over from Ethereum Mainnet to Matic mainnet through a bridge. Now, users can interact with the DApps in Matic network with negligible transaction fee. Hence, compatibility with ETH is featured.
- Polygon is scalable. They have their own blockchain, they use a different consensus algorithm (PoS), etc.,
- Security. It uses Security as a service either from Ethereum miners or a group of professional validators.
Majority of the Dapps have forked themselves into the Matic network and a majority of the interaction happens through this network because of the negligible transaction fee. This fee is paid in MATIC (Polygon's native token). Over 400 Dapps have scaled using Polygon. Popular dapps among them are:
- Infosys Consulting
Layer 2 solutions generally fall under 3 types:
- State channels
Polygon before expanding followed the Plasma route of scaling Ethereum, but right now it has a more general approach providing both Plasma and Rollups scalibility. At the time of writing this post, Plasma implementation is live, with Rollups (zk, optimistic) and Stand-Alone chains upcoming. When these implementations go live, there will be much more hype and excitement around Polygon.
Developers can choose which implementation is best suited for their application and Polygon provides the resources for that.
This flexibility is what makes Polygon the most preferred framework.