Two Matics, Two Blockchains, One Major Difference
Matic is the native cryptocurrency on the Polygon network. Matic also happens to be a cryptocurrency on the Ethereum network. The difference is all about the blockchain. Despite being related projects--Polygon is built on the Ethereum network--failing to keep track of the blockchain on which a token is minted can create headaches for unwary token holders.
What is Polygon?
Polygon is a secondary scaling solution for the Ethereum blockchain. It was designed to improve the Ethereum network’s transaction processing speed and reduce transaction costs, also known as gas fees.
What is the difference between MATIC on Polygon and Matic on Ethereum?
The short Matic (Eth) is an ERC20 token on the Ethereum blockchain. Matic (Polygon/Matic) is the native token on the Polygon blockchain (the secondary scaling solution mentioned above). NFTs can be minted on either of the two networks. Beyond the fact that Polygon runs as a second layer of Ethereum and the similar names, the two networks are very different.
Knowing the blockchain on which your NFT was minted is incredibly important in one key area--movement of your NFT between different wallets. Get this wrong and you could lose your token forever.
Why does it matter?
A Matic token on the Ethereum network and a native Matic token on the Polygon network should not be sent to the same wallet (either both to an Ethereum wallet or both to a Polygon wallet) as they are each minted on different blockchains. If you send a token minted on the Matic network on Ethereum to your Matic address on the Polygon network you will likely loose your coin/token.
Sending a token minted on Matic on the Ethereum network to an Ethereum address (Metamask) will be successful. But sending a token minted on Matic on the Ethereum network to a Polygon address on the Polygon network (on Metamask) will result in lost funds. The reverse is also the same. Sending a token minted on Matic on the Polygon network to a Polygon address is fine.
I'm a blockchain enthusiast with a deep understanding of the intricacies surrounding various blockchain projects, including Ethereum, Polygon, and their associated cryptocurrencies. My expertise stems from extensive research, practical application, and a keen interest in the evolving landscape of decentralized technologies.
Now, delving into the concepts outlined in the article "Two Matics, Two Blockchains, One Major Difference," let's break down the key elements:
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Matic as a Native Cryptocurrency:
- Matic serves as the native cryptocurrency on the Polygon network, which is a secondary scaling solution for the Ethereum blockchain.
- It's crucial to note that Matic also exists as a cryptocurrency on the Ethereum network.
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Polygon as a Scaling Solution:
- Polygon is introduced as a secondary scaling solution for the Ethereum blockchain.
- The primary purpose of Polygon is to enhance the transaction processing speed and reduce transaction costs, commonly referred to as gas fees, on the Ethereum network.
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Difference Between MATIC on Polygon and Matic on Ethereum:
- Matic (Eth) is an ERC20 token on the Ethereum blockchain.
- Matic (Polygon/Matic) is the native token on the Polygon blockchain, functioning as the secondary scaling solution mentioned earlier.
- Despite their similar names, these two networks are distinct entities.
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Importance of Tracking the Blockchain:
- Failure to keep track of the blockchain on which a token is minted can result in significant issues for token holders.
- The critical aspect lies in understanding the specific blockchain where an NFT (Non-Fungible Token) is minted.
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NFT Movement and Blockchain Considerations:
- NFTs can be minted on either the Ethereum or Polygon networks.
- It's emphasized that the movement of NFTs between different wallets is crucial, as sending a token minted on one blockchain to an address on another blockchain can lead to irreversible loss of funds.
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Wallet Address Considerations:
- Matic tokens minted on the Ethereum network should not be sent to a Polygon address and vice versa.
- The article warns against sending tokens to the wrong type of wallet, as it may result in the permanent loss of the token.
In summary, understanding the nuanced differences between Matic on Ethereum and Matic on Polygon, tracking the blockchain on which tokens are minted, and being mindful of wallet address compatibility are vital for anyone involved in handling these cryptocurrencies, especially in the context of NFTs and cross-network transactions.
