HOW TO BUY POLYGON ASSETS – PART 2
Now, it’s important to note on this page is about balances on Polygon Mainnet. If I go back here.
That looks different. It shows me my account concept showing my ETH balance and 41.2873 MATIC. What does that mean? MATIC is the base token that powers a Polygon network. If we remember, we have this concept of gas in Ethereum, and gas in Ethereum is essentially the fuel you use to do any transaction. It is just like oil and gas in your car. If we go back to the early analogy we had, a Bitcoin versus Ethereum, a Bitcoin is digital gold. Bitcoin is perfectly scarce. It will be exhausted. Only 21 million bitcoin were ever made and will no longer be released. That is essentially like digital gold, and it is a good store of value because it’s scarce, infinitely scarce.
Ethereum is like digital oil in a sense. The value of oil is worth it. People made countries for oil, people spend billions of dollars to buy oil, and everyone has to use oil sometimes to do things like flying planes, driving to a new city, things like that. Therefore oil is worth a lot of money. In some way, it’s like gold is worth a lot of money, but gold doesn’t have any useful purpose. Some jewelry is made from gold. Some industrial appliances are the reason that gold is nearly much of this. That is why gold is a fraction of the oil price. Almost all the value comes from the fact that it’s helpful in life. It’s useful to create energy in driving a car or flying a plane. That’s the same thing with Ethereum. It is super valuable, but for quite a different reason than bitcoin. It is valuable because you need it to pay transactions in the Ethereum Blockchain network. MATIC is the same thing you think of Polygon as the new Blockchain, you need a kind of fuel to do that helpful work on the Polygon Blockchain, and it is called the MATIC token. Those are two concepts you can think of MATIC as fuel, oil, and gas for the Polygon Blockchain, the same way on the Ethereum Blockchain. You have Ethereum. If I switch over to the Ethereum main net, you see a balance of 1.5743 Ethereum.
On the same address account, I see on my Polygon main net that it only shows my balance is 0.3088 ETH.
It’s strange. What does that mean? It means I have a new set of balances for each Erc token. All these are fungible tokens. All these currencies I can store on the Polygon network in the exact way I can accumulate them in the Ethereum network. That’s complicating. Let me guide you, and then you can try this yourself later if you want to play around with Polygon to show how it works.
It displays all the different steps and what it means to deposit funds from Ethereum to Polygon, etc. But what we do is click this button called ‘ Move funds from Ethereum to Polygon’
If we move funds from Ethereum to Polygon, for example, my Ethereum from my Ethereum main net wallet address, the Ethereum Blockchain network to the Polygon network. It means I move real Ethereum from here over the Polygon network balance.
I can move them both ways and cost money. If I go over here, we will move our Ethereum off the Ethereum chain.
It shows I have 1,574. If I look there, that’s what it displays when I switch to the Ethereum main net in MetaMask.
I have 1,5743 Ethereum, and it’s on the Ethereum base layer blockchain. But I will move 0.5 ETH into the Polygon chain.
I still have Ethereum. Let’s move on to the side chain Polygon that exists as a layer two solution on Ethereum.
It complicated. Now understand this is a way to move money into a different side chain, a layer two solution that you don’t have to pay gas. But the transaction still costs a lot of money. It shows that the ‘Deposit process for the Ether consists of a single transaction. Estimation of total gas required for this transaction. Complete Deposit $161.55’
That’s still a lot of money to transfer to start using Polygon. It is the tricky part of using Polygon. Is this an unavoidable fee of the layer two solutions here? I click the ‘Continue’ button.
Look at this, you transfer money from the Ethereum network to the Polygon network, and thankfully, it’s a lot cheaper.
It’ll be $161 as a transaction fee, but now I’m seeing.
It’s going to be a bit less, maybe more like $47.
I’m good with that because I’m transferring about $2000. I click the ‘Confirm’ button.
Let’s make that transaction go through. It is now pending.
It displays that ‘Ethereum transactions can take longer time to complete based upon network congestion. Please wait or increase the gas price of the transaction.’ I click the ‘View on Etherscan’ button
We go here and see the gas price is about 110 Gwei.
So I paid 120 Gwei, and it was accepted immediately. It said there were 7 to 11 confirmed transactions, and the amount I had to pay was less than that. It was only $36.
Because they have a good margin on their gas limit, and I pay for gas about 111 Gwei instead of 120 because Gwei is low there. So perfect!
HOW TO BUY POLYGON ASSETS – PART 3
Now, let’s go back and see what happened to that transaction. It shows ‘Confirmed’
Perfect! ‘Your transfer is en-route. It will take ~7-8 minutes for the deposit to get completed. On completion, your balance will be updated.’ That goes back to the same thing we saw when Coinbase moved real money. From Coinbase’s bank account to your own MetaMask account. It takes 35 confirmations for that amount to show up. Why so? For the security of the network system. You can’t have to wait and say a few blocks have been generated before you are confident that no one can hack that system and delete the money that was deposited in that first block. Just understand that’s why you have to wait for not one block confirmation but sometimes up to 35 block confirmations, which can take a few minutes.
Here, it says we deposited 0.5 ETH into Polygon MATIC. It’s wonderful!
Now, I already have some funds on Polygon. Let’s go in here. Let’s see how much money we have. Let’s try to use that on OpenSea. It is a various Polygon NFTs.
I’ll show you how to display this after we buy something.
If we go back to our Polygon main net page, we see there is one pending transaction.
That’s us 2 minutes ago trying to deposit this money into Polygon, and it takes time for this Polygon roll-ups into the Ethereum main net.
As we were talking about for even another reason to this Polygon is a side chain, it’s different from immutable that was layer two solutions were taking, which is a new technology, called ZK-rollups, which is quite different. Both of them work in different ways. They have different trade-offs and different security benefits. Polygon has more options, but now, immutable will be more secure. It’ll have a lot more security because it inherits all the security of the base layer. So out of the scope, now, both of them are pretty well. We see when we sent 0.5 ETH from our major Ethereum balance. We lost it. We had 1.57 ETH before. Now we only have 1.06 ETH left.
We had to pay for some gas that’s 0.01, but now, when we access here, we see this has stopped pending. We’ll see this Ethereum balance update from 0.3088 to 0.8088
It will take a while. In the meantime, I will walk you through how to purchase Polygon assets. It is another thing we do at Curious Addys. We airdrop out to our holders.
It’s for money. The factual idea is that we get real art NFTs into the hands of our collectors.
The whole idea there is our thesis. It’s hard to understand the allure of NFTs. Why do people pay so much for them? If this is a real art, why don’t you own one for yourself? Until you own NFT yourself, you can’t understand that feeling, but you’re not trying to own the NFT. You’re trying to buy one. Until you already have one and you’ll understand the feeling. So how do you solve that? What we’re saying while we airdrop these NFTs to people so they can create their galleries in the metaverse? So how do you solve that? What we’re saying while we airdrop these NFTs to people so they can create their galleries in the metaverse? So how do you solve that? What we’re saying while we airdrop these NFTs to people so they can create their galleries in the metaverse? The art museum that I’ll show you mine for later to give you an idea of what we’re doing here. If we take these art pieces to people, maybe they appreciate NFT art and understand the value of this reality firsthand. We can see this is the first NFT art piece that we airdrop to our holder, and again the value is very cheap because we gave this away for free. So there’s no monetary value attached to this. Someone is selling for $2 now. That’s great because that’s pretty cheap. But again, remember when we’re doing this on the Ethereum main net, it will still cost about $100 or 75 bucks at least to buy a $2 piece of art for $70 transaction fees. Thankfully we’re on the Polygon because you see it showing the Polygon. If you hover here, you’ll see.
These are all different shades of purple Ethereum. It is an ordinary Ethereum black sign. If we click the ‘Buy Now’ button, it will use Ethereum.
We got on the Polygon network. If we go back Polygon network, we see that transaction went through.
Now we have $3460 on the Polygon main net, and 0.8088 Ethereum now exists on Polygon, not on Ethereum. It’s the same amount of money. It’s the same currency. I can move this all back to the Ethereum main net, but now, I can use this on Polygon, another network. Here, we had 1.0657 ETH.
We’ll buy this art piece and click the ‘Buy Now’ button.
If we do this, it shows us that ‘This is an unreviewed collection’ is very reasonable because not many people have bought it. It is very new that we just have created this collection. And funny, the creator is me.
‘ member since May 25, 2021’ that’s because I was the one who deployed the contract to create this.
Let’s click the ‘Confirm checkout’ button.
We go through it, and then it asks us to sign the message to complete the purchase.
To complete your purchase, sign the message. That’s amazing. We don’t have to pay any gas fees. To buy here, all we have to do is sign the message. Go ahead, sign this message, and we can see it shows ‘Processing request…’.
We’ll wait for a while. Then, much faster than on Ethereum, we can see the transaction completed.
If we click here, it shows us a website similar to Etherscan, where we saw all the transactions happening. The main net for Ethereum. We call it Polyscan.
You see, it’s the same thing we were doing before. Here, it went through very quickly, and we paid a little for gas.
Let’s look at these gas fees you paid 0.0468 MATIC.
Remember MATIC is the kind of gas that you use in the Polygon network, just like you use Ethereum in the Ethereum network. That’s amazing! It also comes out to just 0.0523 MATIC, that’s 0.08 cents that we paid to send this transaction.
On Ethereum, that would cost us about $70. Now, even though this was only $2 and 9 cents to buy this piece.
Now transaction fees are still only a fraction of that amount. It makes a lot of sense to us. Now we have this artwork. If we observe, we see you own three of these.
Because I airdropped it for me, and I bought two. So we have this. It is awesome! You may find Polygon easier to use and faster in some ways.
It’s a bit more technical because you have to switch your network.