Polygon vs Arbitrum

Polygon and Arbitrum are two popular blockchains. In this article we'll compare them across a variety of metrics. Both blockchains have their own strengths and weaknesses, and we'll explore them below.

Table of Contents

  1. Metrics
  2. Detailed Comparison
  3. FAQs

Metrics

PolygonArbitrum
Created byJaynti Kanani, Sandeep Nailwa, Anurag Arjun, and Mihailo BjelicGermans Gedgauds
Native tokenMATICETH
Consensus algorithmPoSPoS
Hashing algorithmKECCAK-256KECCAK-256
Supports EVMYesYes
TPS70004000
Block time (secs)213
Layer22
Supports smart contractsYesYes
Average transaction fee$0.018$0.101
Staking rewards (APR)4.78%%

Detailed Comparison

Network Performance and Scalability

Both Polygon and Arbitrum are Layer 2 scaling solutions designed to enhance Ethereum's capabilities, but they differ in several performance metrics:

  • Transaction Speed (TPS)
    • Polygon: 7,000 TPS
    • Arbitrum: 4,000 TPS

Polygon's higher TPS gives it a significant advantage in handling larger transaction volumes. This makes Polygon particularly suitable for applications requiring high-frequency transactions, such as gaming or DeFi platforms with heavy trading activity.

  • Block Time
    • Polygon: 2 seconds
    • Arbitrum: 13 seconds

The faster block time on Polygon means transactions are confirmed more quickly, providing a more responsive user experience. This 2-second block time allows for near-instant transaction finality, while Arbitrum's 13-second block time, though still faster than Ethereum mainnet, results in slightly longer wait times for confirmation.

Transaction Costs and Economics

  • Average Transaction Fee
    • Polygon: $0.018
    • Arbitrum: $0.101

Polygon's significantly lower transaction fees make it more accessible for everyday users and micro-transactions. At roughly 1.8 cents per transaction, Polygon enables use cases that wouldn't be economically viable on networks with higher fees. Arbitrum's fees, while higher than Polygon's, are still substantially lower than Ethereum mainnet.

Technical Infrastructure

Both networks share several technical characteristics:

  • EVM Compatibility: Both are EVM-compatible
  • Smart Contract Support: Both fully support smart contracts
  • Hashing Algorithm: Both use KECCAK-256
  • Consensus Mechanism: Both employ Proof of Stake (PoS)

Staking and Rewards

  • Staking Rewards
    • Polygon: 4.78% APY
    • Arbitrum: Not available

Polygon offers clear staking incentives for token holders, providing an opportunity to earn passive income through network participation. This creates an additional value proposition for long-term holders and helps secure the network. Arbitrum, on the other hand, doesn't currently offer staking rewards.

Native Tokens and Supply

  • Native Token
    • Polygon: MATIC
    • Arbitrum: ETH

Polygon's native MATIC token is specifically designed for its ecosystem, while Arbitrum uses ETH as its native token. Both networks have no maximum supply cap, allowing for flexible tokenomics based on network needs.

Development and Community

Both networks have strong development teams and community support:

  • Founding Teams
    • Polygon: Founded by a team of four (Jaynti Kanani, Sandeep Nailwa, Anurag Arjun, and Mihailo Bjelic)
    • Arbitrum: Created by Germans Gedgauds

Online Presence and Resources

Polygon maintains a more comprehensive online presence with listings on:

  • Major Tracking Platforms
    • Coingecko
    • CoinMarketCap
    • Nomics
  • Documentation
    • Wikipedia page
    • Active Medium blog

Arbitrum has a more focused online presence through:

  • Official website
  • GitHub repository
  • Twitter account
  • Medium blog

Use Case Optimization

The technical specifications of each network make them better suited for different use cases:

Polygon excels in:

  • High-frequency trading applications
  • Gaming and NFT platforms
  • Micro-transactions
  • DeFi applications requiring quick finality

Arbitrum is well-suited for:

  • Applications requiring stronger security guarantees
  • Complex smart contract deployments
  • DeFi protocols prioritizing security over speed
  • Enterprise applications

Future Development and Ecosystem Growth

Both networks are actively developing their ecosystems:

  • Polygon is focusing on:

    • ZK rollup technology
    • Ecosystem expansion
    • Cross-chain interoperability
    • Sustainable scaling solutions
  • Arbitrum is emphasizing:

    • Optimistic rollup optimization
    • Developer tools and support
    • Enterprise adoption
    • Security enhancements

The comparison reveals that while both networks serve as Layer 2 scaling solutions, they have distinct characteristics that make them suitable for different use cases. Polygon's focus on high performance and low costs makes it ideal for mass adoption and frequent transactions, while Arbitrum's architecture provides a balance of security and scalability that may appeal to different types of applications and users.

FAQs

Is Polygon faster than Arbitrum?

Yes, Polygon can process 7000 transactions per second. Arbitrum only processes up to 4000.

Is Polygon cheaper than Arbitrum?

Yes, Polygon has an average transaction fee of $0.018, whereas Arbitrum costs $0.101.