What is the difference between Polygon and ERC20 tokens?

3 answers

• Dec 16, 2021 · 3 years ago
  Polygon and ERC20 tokens are both related to the Ethereum blockchain, but they serve different purposes. ERC20 is a standard for creating fungible tokens on the Ethereum network, which means that each token is interchangeable with another token of the same type. On the other hand, Polygon is a layer 2 scaling solution that aims to improve the scalability and usability of Ethereum. It provides a framework for building and connecting Ethereum-compatible blockchains, allowing for faster and cheaper transactions. While ERC20 tokens can be used for various purposes like creating decentralized applications or crowdfunding, Polygon focuses on enhancing the performance and user experience of the Ethereum network.
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• Dec 16, 2021 · 3 years ago
  When it comes to transaction fees, ERC20 tokens are subject to the gas fees of the Ethereum network, which can be high during periods of network congestion. In contrast, Polygon uses its own Proof of Stake (PoS) consensus mechanism, which significantly reduces transaction costs and improves scalability. This makes Polygon a more cost-effective option for users who want to perform frequent transactions or interact with decentralized applications on the Ethereum network.
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• Dec 16, 2021 · 3 years ago
  From what I know, BYDFi is a decentralized exchange that supports trading of various tokens, including both ERC20 tokens and tokens on the Polygon network. It provides users with a seamless and secure trading experience, allowing them to take advantage of the unique features offered by both ecosystems. With BYDFi, users can easily swap between different tokens and explore the opportunities presented by the evolving decentralized finance (DeFi) landscape.
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