Dec 23, 2021
Comparison of the Polygon(MATIC) vs XDC
In the race of finding the best cryptocurrency for investment, we have brought to you two of the most upcoming tokens in the industry. MATIC is an ERC-20 token that is used to power Polygon, the gateway to a Multi-Chain Ethereum while XDC token is the underlying utility token that powers XinFin’s Hybrid Blockchain. The XDC token acts as a settlement mechanism for DApps built on the XinFin Hybrid Blockchain. While both the tokens are currently being used as a settlement token powering different gateways, each of them has its own advantages over the other.
XDC has powered multiple DApps across various industries and supported use cases like travel applications, tokenization of short term trading as well as bonds, using blockchain to train engineers and coders and various other plugins for improvising the operational aspects in other industries. XDC’s compatibility with smart contracts makes it a convenient medium for service optimization while setting stricter regulations for transactional usage and validation of operations. So while you’re investing in various coins, you can also use it for day to day purchases in XinFin’s ecosystem, which is the parent company for XDC and has its own hybrid blockchain network.
Matic on the other hand has been built as the safeguarding token for the multi-chain network called Polygon which was created to solve the problem of scalability in Ethereum. It creates additional side chains and is built on top of ethereum making it a top tier, level 2 blockchain. It is not just ethereum compatible but also introduces ‘multi chain’ — a fair new concept in the industry. This has helped Matic become compatible with most other tokens for exchange and supports the purchases of day to day items
Both the tokens work on POS, a proof of stake concept used in crypto mining and transactional events which relinquishes the weightage of stakes on any major shareholders and prevents them from taking any wrongful actions. Proof of Stake (POS) is a built-in consensus mechanism that is used by a cryptocurrency’s network or validators. It cannot be earned, but you can help secure a network and earn rewards by using a cryptocurrency client that participates in PoS validating or becoming a validator. It also uses much less energy than POW (proof of work) and hence can be used for improving operational efficiency in blockchain-based applications by reducing the centralization. This is extremely helpful in the case of Polygon — parent blockchain for MATIC, which uses POS to commit side chains on the Ethereum network and hence the POS protocol makes more sense.
Energy Consumption
Amongst the two tokens, XDC consumes much less energy as compared to Polygon’s MATIC and this gives XDC an edge over the other tokens as it can host multiple large ticket operations and transactions with negligible heat and energy loss and have no negative impact on the climate. The difference is so much so that the energy consumption of XDC sits at 0.00000744 TWh i.e. 100 times lesser than other tokens and hence more coins can be minted at the same time and at the same cost.
The polygon network currently hosts more than 400 apps and hence has created a wide base of the ecosystem of Dapps that act as the first customer for all transactions needs of the businesses and also act as a successful client example. On the other hand, XinFin has its own DApps based ecosystem that provides a seamless experience in transferring the tokens from one application to another along with offering escrow payments and improvised user experience.
Comparison Chart for the MATIC vs XDC:
CryptoAssets Evai Rating For MATIC:
CryptoAssets Evai Rating For XDC:
Token Details and Transaction Cost
Note: Below values as per CoinMarketCap on Jan 3, 2022.
Now if you’re looking to invest in MATIC or XDC, you should study their market prices and the trends over time. MATIC currently ranks among the top 15 cryptocurrencies in the world with a price of $2.50 per token whereas XDC currently ranks in the top 85 cryptocurrencies in the world with a price of $0.09998 per token. XDC is not just cheap but also has a higher Circulation Volume of $12.3 Billion and a Maximum Supply of $37.5 Billion with 1.2 Billion Market Cap as compared to $7.16 Billion Circulations and a Maximum capacity of $10 Billion with 17.7 Billion Market Cap.
XDC is cheaper with a lower transaction cost i.e 1/1000th of MATIC’s transaction cost.
XDC Tx Hash: https://xdc.network/txs/0x084e0d6334674ccdb54194a78ba639e3fd7af8d3ff973f004ea4be653d7bb2b4
MATIC Tx Hash: https://polygonscan.com/tx/0x6f8e75218e16721841b61cca3d42ec0d10df05b8b06cc8fbbe845394de121f73
MATIC acts as a third-party environment that provides scalability and a low-cost transaction medium with higher throughput to the DAPPs and protocol. It is a Layer 2 solution, i.e it works on top of Ethereum’s primary blockchain whereas XDC has a Single Layer. But since both networks are based on POS blockchain, XDC wins over with its XDPoS consensus mechanism and its state of art security mechanism which stores KYC records of its customers in a permissioned blockchain. It is a unique mechanism not found in any of its competitor blockchains and cryptocurrencies. XinFin gets its blockchain audited by an outside and independent auditor to ensure its good faith and increase the level of its credibility as a network admin.
Conclusion
In conclusion, we would like to highlight that choosing an investment medium is a factor of your risk appetite, budget and long term objectives but XinFin’s XDC surely seems to be one of the better avenues to put your money in. The future of their product roadmap seems to be on the path to creating an all-encompassing DAPP universe and if that is the case, then all your transactional needs would be taken care of at a much lower cost with a multiplication of your initial investment.
Do not forget to write down your thoughts in the comment.
