ETH network transaction cost comparing to polygon MATIC network

The set of protocols in polygon are designed to fix the scalability issues in Ethereum. This ether (ETH) network was facing many issues, such as high transaction costs, less options for developers, and low throughout, which is the reason why polygon was born. However, there are so many questions regarding both these blockchain networks. Let us answer all your common queries in this article, including the comparison between the transaction cost of ETH network and polygon MATIC network.

Are MATIC and polygon the same thing?

Before its revision and update, polygon was known as MATIC network till February 2021. The main offering of this network was plasma side chains. Plasma side chains are similar to blockchains, except that they offer greater security and better convenience. The base or the root of the plasma chain is published on a layer of Ethereum.

After the expansion of polygon, it opted to keep the ticker MATIC for its native token, and therefore, the MATIC network became polygon.

Why is polygon cheaper than Ethereum?

As we mentioned above, polygon was developed to mitigate the issue of high transaction fees in Ethereum. The reason why polygon is cheaper than Ethereum is related to the calculation of gas fees, since Ethereum is calculated in ETH, whereas polygon is calculated in MATIC. Gas fees is a fee or a cost required to conduct a transaction on the open source blockchain. Fees is usually priced in tiny fractions of the cryptocurrency. So, for example, the denomination gwei is 10-9 ETH.

 Transaction fee in ETH network vs Polygon MATIC

If we transfer one unit of native currency, the transaction cost of 7 gwei on Ethereum, the transaction fees can go up to $0.62. Similarly, the transaction service fee is 0.024609 polygon, which is $ 0.030399 (USD).

What is gas (Ethereum)?

Gas is the fees or the cost required to execute a contract or successfully conduct a transaction on the Ethereum blockchain platform. Fees is usually priced at smaller fractions of the native cryptocurrency, so on Ethereum it is smaller denominations of ether. Therefore, another way of looking at it is that gas is paid to validators in exchange for the resources that are needed to successfully conduct the transactions. The exact price of gas is calculated through a variety of variables, including supply, demand and network capacity at the exact time of the transaction or the smart contract.

Understanding gas in Ethereum

Gas, as a concept was introduced to compensate miners for their contribution in maintaining and securing the blockchain. In fact, this concept was introduced after the proof of stake algorithm came out in September 2022, pushing gas fees to become a reward for mining/staking ETH. Therefore, the more a user stakes, the higher they could earn.

The maximum amount of work you can estimate a validator on a specific transaction is known as gas limit. If the gas limit is higher, it usually implies that the user believes that a specific transaction will need more work. Similarly, the price per unit of work done in Ethereum is known as gas price. Therefore, the gas limit multiplied by the gas price helps us find the transaction cost. It is also important to remember that sometimes, transactions can also include tips, which will consequently add to the gas price. Tips are given because the more you pay, the faster your transaction is completed. In the same vein, your priority in the queue will become lower, if the user lowers their gas limit estimate.

Is polygon really gas free?

Technically, polygon does not need any gas fees on its blockchain network. As a consequence, it becomes easy to buy or sell an NFT on polygon, because it is gas fees-free. However, users have to pay a very small/negligible gas fees as they are converting Ethereum ETH to polygon ETH. It is also important to remember that polygon is a very scalable platform, and therefore, the transaction converting gas fee should be seen as an investment.

Is it better to use ETH or polygon?

Although, the Ethereum platform has more features and security, both Polygon and Solana are more affordable, have the capability to scale and have faster speeds. In fact, polygon has the fastest transaction speed and scalability, with nearly 65K TPS. Moreover, scalability issues remain highly negligible, allowing users to have greater access to faster transactions in Polygon.

Is polygon an ETH killer?

Technically, an Ethereum killer should offer an alternative platform for users to self-execute smart contracts. However, polygon was always meant to be a scaling solution, implying that it aimed to retain original users in the Ethereum ecosystem, while scaling through greater efficiency, speed, and affordability.

Can polygon exist without Ethereum ?

Polygon has been developed utilising the Ethereum blockchain, however, this does not mean that it is only limited to Ethereum. Polygon has many side chains that work with blockchain technology.

Conclusion

The reason why polygon is cheaper than Ethereum is due to the calculation of gas fees, since Ethereum is calculated in ETH, whereas polygon is calculated in MATIC.