It’s easy to see why we chose Polygon (previously Matic) as the next step to further develop 8Pay’s multi-chain network beyond the Binance Smart Chain (BSC).
The Added Benefits of Ethereum Through Polygon
Operating as a scaling solution for Ethereum, the Polygon network shares all the benefits of using Ethereum while avoiding nearly all of its current drawbacks due to the congestion caused by the blockchain’s popularity.
Ethereum has proven itself the reigning king of decentralized finance (DeFi) by currently holding the lion’s share of DeFi’s over $50B in total value locked (TVL), and Ethereum’s first-mover advantage in the world of smart contracts makes the benefits of using the network hard to ignore.
While Ethereum remains the most trusted and therefore most used blockchain for participating in DeFi, a rush of solutions have been launched in order to address Ethereum’s scalability problems: speeds are slow, and transaction prices are often driven through the roof due to high-traffic volumes.
By utilizing several technologies that allow for data to be more efficiently bundled and added onto Ethereum’s blockchain, Polygon can run at lightning fast speeds with transactions that are incredibly low-cost (currently fractions of a penny).
Essentially, using Ethereum’s main network has a number of long-term advantages in the world of DeFi, but realistically making the large amount of transactions necessary for a payments solution like 8Pay has become impossible without a full-stack scaling solution like Polygon.
Polygon a Safe Bet for the Planet’s Future Near and Far
Much criticism has been drawn towards blockchain technology for the strain that mining can place on the environment. Polygon’s Proof of Stake (PoS) consensus model means its impact on global warming is reduced by 99% compared with other blockchains, like Ethereum itself, running on Proof of Work (PoW).
While Ethereum plans to move onto a PoS model with the launch of Ethereum 2.0, Nasdaq reports that the day when this changeover occurs continues to be delayed.
Polygon’s eco-friendly factor is hard to ignore. The planet continues warming alongside an increase in blockchain transactions due to the success of DeFi and distributed ledger technologies (DLT). For this reason, Beeple, the digital artist who made headlines by selling an NFT for $69.5M this March, has decided to launch his latest NFT venture on Polygon.
Why 8Pay Will Develop Payment Solutions on Polygon
Beeple is just one of many big names in crypto choosing Polygon for the future of their projects.
Some of the biggest DeFi platforms that have moved onto Polygon are already seeing success on the network. Coindesk has reported that AAVE, DeFi’s largest money market by TVL, has seen daily transaction volumes averaging $6.5B per day on Polygon compared with averages under $3B on Ethereum.
Most of these transactions have been attributed to retail investors, but recent analysis of on-chain data shows institutional investors are moving onto Polygon everyday, and this bodes incredibly well for 8Pay’s choice to develop on Polygon as we continue to grow.
Furthermore, it appears that Polygon is quickly outpacing every other solution tackling Ethereum’s scalability problem.
Final Verdict: Polygon an Obvious Choice for 8Pay
Recent news indicates that Polygon’s growth potential has yet to find its limit. Polygon’s announced launch of a new blockchain project, Avail, means that the network’s increased scalability should be ensured well into the future.
As 8Pay will need to execute more and more transactions, due also to the next week main net release, as our own popularity grows, the assurance that we will be able to do so quickly and at low cost no matter how popular Polygon becomes will be essential to the success of 8Pay’s vision and future growth.
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