Polygon is a cryptocurrency project that aims to improve Ethereum’s downsides, and it’s been around since 2017. Algorand hit the market two years later, and this crypto protocol has the goal of offering a payment solution that includes optimal speed and security while ensuring decentralization.
In this article, you can read a MATIC versus ALGO comparison to learn more about the similarities and differences between these cryptocurrencies.
Polygon vs Algorand: Common Features
First, we will focus on the things these two platforms have in common.
What Blockchain Do They Use?
Polygon and Algorand both use blockchain technology, which you could explain as a digital ledger that stores transactions from different computers, but in ways that changing the info about transactions is impossible without the network consensus.
Some differences exist in the blockchain structures that these networks use. Algorand uses a layer-1 blockchain, and Polygon is a layer-2 blockchain built on top of the Ethereum network.
What Common Scalability Changes Do They Have?
As a layer-2 blockchain, Polygon has the main goal of improving Ethereum’s scalability. They do such a good job that this network can process up to 65,000 transactions per second. But in cases of network congestion, the fees involved with every transaction could increase significantly.
Algorand has the capability of creating a new block every 3.9 seconds. The network can process up to 6,000 transactions per second, which is also quite impressive. While it has some congestion issues, the developers promise they are working on improving this in the near future.
What Is Smart Contract Functionality About?
Polygon and Algorand both support smart contracts. It’s a blockchain technology core feature that allows storing a transaction protocol or program on a chain and activating it only after meeting the given conditions.
Smart contracts allow developers to create decentralized applications for different purposes, and they can also perform programmable transactions.
Polygon vs Algorand: Differences
What sets apart Polygon from Algorand? That’s what you’ll discover in the following sections, where we focus on the differences between these two projects.
Understanding Consensus Mechanism
Polygon uses a variation of the Proof-of-Stake protocol they call PolyBFT. BFT stands for Byzantine Fault Tolerance, which presents a system that secures the network and keeps functioning even with certain problematic components.
Algorand uses a different variation of the PoS called the Pure Proof-of-Stake. Developers also built it on the Byzantine consensus.
Network Security Features
Compared to Ethereum, Polygon’s a bit more centralized. Its chain operators are also stakers, which contributes to the security levels. However, there were several news where this network was hacked, and MATIC tokens were stolen.
Algorand also faced cyberattacks, which is why the developers keep working on improving security. The secret block creator mechanism, randomized validators, and separate participation keys are all imperative for the platform’s security.
Token Economics Analysis
Polygon is worth $0.7 a the moment, and its market cap is still over $6 billion. That’s enough for the MATIC token to rank among the top 15 in the crypto rankings. The circulating supply is now around 9.31 billion tokens. This amounts to 93% of the maximum and total supply, which are both at 10,000,000,000 MATIC. There’s a burning mechanism where MATIC tokens are burned for gas fees, which will likely have a deflationary influence.
Algorand’s token is now worth $0.12 and is in the top 50 currencies. About 7.5 billion ALGO tokens are currently in circulation, and the maximum is set to 10 billion. The minted coins will be distributed by 2030, which is an extension compared to the previous plan to do this by 2024. The project’s market cap is $890 million.
Polygon vs Algorand: Who Is the Winner?
Both projects have been around for years, and they could be viable investments. If you check crypto ranks and value per coin, it seems that MATIC beats ALGO in tokenomics. But ultimately, if you plan to invest in either token, it should be your decision. Whether converting MATIC to SOL or ALGO, make sure to check all relevant factors to see if now is the right time to invest.