Why has Enegra issued EGX on the Polygon network?
Enegra chose to migrate EGX from the Ethereum network to Polygon due to its lower transaction costs, faster processing, and scalability, making it more efficient than Ethereum. Its compatibility with Ethereum ensures integration with existing wallets, exchanges, and DeFi protocols, while its modular frameworks offer customisable solutions. Polygon's eco-friendly Proof-of-Stake model also aligns with Enegra's Environmental, Social, and Governance (ESG) goals.
Layer. Ethereum is a Layer 1 blockchain, serving as the foundational layer for decentralised applications (dApps). Polygon is a Layer 2 scaling solution built on top of Ethereum, enhancing Ethereum’s capabilities without replacing it.
Technology. Ethereum transitioned to a Proof-of-Stake (PoS) mechanism with the Ethereum 2.0 upgrade, improving energy efficiency and security. Polygon employs various scaling technologies, such as sidechains, zk-rollups, and optimistic rollups, to increase transaction speed and reduce costs.
Purpose. Designed as a decentralized platform for smart contracts, Ethereum powers a wide range of applications, including decentralised finance (DeFi), non-fungible tokens (NFTs), and more. Polygon aims to provide a scalable and efficient infrastructure for Ethereum-based dApps while leveraging Ethereum’s security and ecosystem.
Security. Due to its high level of decentralisation and robust validator network, Ethereum is one of the most secure blockchain platforms. Polygon uses its own validator network and inherits Ethereum’s security to a large extent, though it may be slightly less decentralized than Ethereum itself.
Scalability. Ethereum faces scalability issues, with high gas fees and slower transactions during periods of network congestion. Polygon can handle high transaction volumes with minimal fees, making it ideal for applications requiring frequent or cost-effective transactions.
Lower Transaction Costs. Security tokens like EGX often involve frequent transactions for trading, compliance, or operations. Polygon’s significantly lower fees make these transactions economical compared to Ethereum’s higher gas fees.
Faster Transactions. Polygon’s architecture ensures near-instant transaction processing, which is crucial for the efficient trading and settlement of security tokens.
Scalability: Polygon’s ability to handle large transaction volumes without congestion is particularly beneficial for security tokens targeting a broad user base.
Ethereum Compatibility. As a Layer 2 solution, Polygon is fully compatible with Ethereum. This allows EGX to leverage Ethereum’s extensive ecosystem, including wallets, decentralised exchanges, and DeFi protocols, while benefiting from Polygon’s efficiency.
Customisable Frameworks. Polygon offers modular frameworks that can be tailored to meet specific requirements for security tokens, including regulatory compliance and functional needs.
Enhanced User Experience. With low fees and fast transactions, Polygon provides a seamless experience for token holders, traders, and issuers, improving adoption and usability.
Eco-Friendly. Polygon’s Proof-of-Stake-based infrastructure consumes less energy compared to others, aligning with ESG principles for sustainable financial products.
To view and manage your EGX holdings, please ensure that you have added the latest EGX contract address to your wallet.
Differences Between Polygon and Ethereum
Layer. Ethereum is a Layer 1 blockchain, serving as the foundational layer for decentralised applications (dApps). Polygon is a Layer 2 scaling solution built on top of Ethereum, enhancing Ethereum’s capabilities without replacing it.
Technology. Ethereum transitioned to a Proof-of-Stake (PoS) mechanism with the Ethereum 2.0 upgrade, improving energy efficiency and security. Polygon employs various scaling technologies, such as sidechains, zk-rollups, and optimistic rollups, to increase transaction speed and reduce costs.
Purpose. Designed as a decentralized platform for smart contracts, Ethereum powers a wide range of applications, including decentralised finance (DeFi), non-fungible tokens (NFTs), and more. Polygon aims to provide a scalable and efficient infrastructure for Ethereum-based dApps while leveraging Ethereum’s security and ecosystem.
Security. Due to its high level of decentralisation and robust validator network, Ethereum is one of the most secure blockchain platforms. Polygon uses its own validator network and inherits Ethereum’s security to a large extent, though it may be slightly less decentralized than Ethereum itself.
Scalability. Ethereum faces scalability issues, with high gas fees and slower transactions during periods of network congestion. Polygon can handle high transaction volumes with minimal fees, making it ideal for applications requiring frequent or cost-effective transactions.
Advantages of Using Polygon for Security Tokens like EGX
Lower Transaction Costs. Security tokens like EGX often involve frequent transactions for trading, compliance, or operations. Polygon’s significantly lower fees make these transactions economical compared to Ethereum’s higher gas fees.
Faster Transactions. Polygon’s architecture ensures near-instant transaction processing, which is crucial for the efficient trading and settlement of security tokens.
Scalability: Polygon’s ability to handle large transaction volumes without congestion is particularly beneficial for security tokens targeting a broad user base.
Ethereum Compatibility. As a Layer 2 solution, Polygon is fully compatible with Ethereum. This allows EGX to leverage Ethereum’s extensive ecosystem, including wallets, decentralised exchanges, and DeFi protocols, while benefiting from Polygon’s efficiency.
Customisable Frameworks. Polygon offers modular frameworks that can be tailored to meet specific requirements for security tokens, including regulatory compliance and functional needs.
Enhanced User Experience. With low fees and fast transactions, Polygon provides a seamless experience for token holders, traders, and issuers, improving adoption and usability.
Eco-Friendly. Polygon’s Proof-of-Stake-based infrastructure consumes less energy compared to others, aligning with ESG principles for sustainable financial products.
To view and manage your EGX holdings, please ensure that you have added the latest EGX contract address to your wallet.
Updated on: 28/01/2025
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