Arbitrum vs Polygon

Karolina

21 Sep 2023
Arbitrum vs Polygon

As the world of blockchain technology quickly progresses, the issue of scalability is among the greatest hurdles yet. With the expansion and popularity of decentralized applications (dApps) and smart contracts, finding effective and economical solutions is crucial. Two leading contenders tackling these challenges are Arbitrum and Polygon, each offering distinct Layer 2 scaling solutions and features. This article delves into the complexities of "Arbitrum vs Polygon" to help readers make well-informed choices for their blockchain requirements.

Understanding Layer 2 Scaling

Blockchain technology fundamentally consists of interconnected blocks which create a transparent and unchangeable ledger. However, as this technology gained widespread adoption, particularly through Ethereum's smart contracts and dApps, it was evident that Layer 1—the base layer—had limitations concerning transaction throughput and speed.

Often referred to as "L2," Layer 2 scaling presents a suite of solutions constructed atop existing Layer 1 blockchains. These solutions do not intend to supplant the main chain but rather augment its capabilities. By relocating certain operations from the main chain (such as calculations or storage) and subsequently consolidating them back, L2 solutions can significantly boost transactions per second, minimize fees, and enhance overall user experience.

Numerous L2 techniques exist, including state channels, Plasma, sidechains, and rollups. Each provides a unique scalability approach accompanied by individual advantages and trade-offs. Arbitrum and Polygon have risen as top solutions among these techniques, attracting both developers and investors.

Arbitrum

Read our post 'What is Arbitrum?'

Developed by Offchain Labs, Arbitrum is a Layer 2 scaling solution employing Optimistic Rollups that enhance the efficacy of Ethereum-based applications. Here's an in-depth examination:

Origin and Development

Arbitrum was devised to tackle Ethereum's scalability issues without jeopardizing security. The developers at Offchain Labs concentrated on crafting a user-friendly solution that lowers fees and expedites transactions for users.

Technical Insights

Arbitrum's central technology is Optimistic Rollup. Instead of performing each transaction on the main Ethereum chain, Arbitrum conducts the majority of transactions off-chain. These are periodically amalgamated into a single group and sent to Ethereum, significantly reducing data stored on the main chain and improving efficiency.

The "optimistic" aspect relates to how transaction validity disputes are managed. Arbitrum presumes transactions are valid unless contested, circumventing validation for each transaction. An on-chain mechanism is in place to resolve any disputes that may surface.

Adoption and Use Cases

Numerous applications and projects have started integrating with Arbitrum due to its advantages. Its ability to preserve Ethereum's security guarantees while bolstering its capabilities makes it an attractive option for many in the industry.

Polygon

Previously known as Matic Network, Polygon has emerged as a leading multi-chain scaling solution for blockchain networks compatible with Ethereum. It strives to offer a means for building a more interconnected and scalable decentralized web.

Foundations and Evolution

Initially introduced as Matic Network, Polygon evolved into a broader multi-chain ecosystem to tackle Ethereum's scalability problems and functionality challenges. Polygon's creators saw the need for a Layer 2 solution that surpassed a singular method and chose to develop a more inclusive framework.

Technical Perspectives

Employing a mixed Proof-of-Stake (PoS) and Plasma framework, Polygon enables quicker, low-cost transactions. Its sidechains function concurrently with the Ethereum main chain, easing transaction volume and facilitating faster confirmations.

Moreover, Polygon's architecture is crafted to accommodate multiple Layer 2 solutions, guaranteeing adaptability and extensive applicability for diverse use cases.

Implementation and Use Cases

With its powerful scaling solution and conformity with Ethereum's tools and infrastructure, Polygon has drawn an extensive variety of decentralized projects – ranging from DeFi platforms to game applications and NFT marketplaces. Its versatility has made it popular among those seeking scalability without sacrificing security or decentralization.

Arbitrum vs. Polygon

To compare Arbitrum and Polygon accurately, it is vital to comprehend the subtleties that set these Layer 2 powerhouses apart.

Technical Approaches and Mechanisms

Arbitrum utilizes Optimistic Rollups to primarily bundle multiple off-chain transactions before submitting them onto the chain as one unit. Transactions are assumed valid by default, with on-chain verification needed only if conflicts arise.

In contrast, Polygon implements sidechains that function in tandem with Ethereum's main chain employing a combination of PoS and Plasma to enable speedy transactions at reduced cost. Its structure is created to incorporate numerous Layer 2 solutions, supplying a wider array of tools and techniques.

Adoption and Ecosystem

Despite both platforms witnessing significant adoption, they serve slightly diverse users. Arbitrum attracts projects seeking uncomplicated integration while maintaining a strong connection with Ethereum, primarily reaping the benefits of reduced fees and heightened throughput.

On the other hand, Polygon delivers a more all-encompassing multi-chain environment, appealing to projects that seek an extensive toolset, increased flexibility, and a broad vision of interconnected chains.

Expenses and Fees

Both solutions strive to substantially lower Ethereum transaction costs. That said, specific fee structures may differ based on transaction volume, network congestion, and other factors. Generally, both Arbitrum and Polygon offer substantially lower transaction fees compared to Ethereum Layer 1.

Compatibility and Interoperability

Both Arbitrum and Polygon emphasize Ethereum compatibility, assuring projects can effortlessly migrate or incorporate without significant restructuring. However, Polygon's wider objective of crafting an interconnected multi-chain ecosystem presents a unique aspect of interoperability, aiming to merge various Layer 2 solutions into an integrated network.

Conclusion

Choosing between these solutions is not a matter of which is objectively superior, but rather which aligns more closely with a project's unique needs and goals. Some may favor Arbitrum's streamlined integration with Ethereum, while others might lean towards Polygon's expansive toolkit and vision.

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AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
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Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series

AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

Gracjan Prusik

11 Mar 2025
AI-Driven Frontend Automation: Elevating Developer Productivity to New Heights

AI Revolution in the Frontend Developer's Workshop

In today's world, programming without AI support means giving up a powerful tool that radically increases a developer's productivity and efficiency. For the modern developer, AI in frontend automation is not just a curiosity, but a key tool that enhances productivity. From automatically generating components, to refactoring, and testing – AI tools are fundamentally changing our daily work, allowing us to focus on the creative aspects of programming instead of the tedious task of writing repetitive code. In this article, I will show how these tools are most commonly used to work faster, smarter, and with greater satisfaction.

This post kicks off a series dedicated to the use of AI in frontend automation, where we will analyze and discuss specific tools, techniques, and practical use cases of AI that help developers in their everyday tasks.

AI in Frontend Automation – How It Helps with Code Refactoring

One of the most common uses of AI is improving code quality and finding errors. These tools can analyze code and suggest optimizations. As a result, we will be able to write code much faster and significantly reduce the risk of human error.

How AI Saves Us from Frustrating Bugs

Imagine this situation: you spend hours debugging an application, not understanding why data isn't being fetched. Everything seems correct, the syntax is fine, yet something isn't working. Often, the problem lies in small details that are hard to catch when reviewing the code.

Let’s take a look at an example:

function fetchData() {
    fetch("htts://jsonplaceholder.typicode.com/posts")
      .then((response) => response.json())
      .then((data) => console.log(data))
      .catch((error) => console.error(error));
}

At first glance, the code looks correct. However, upon running it, no data is retrieved. Why? There’s a typo in the URL – "htts" instead of "https." This is a classic example of an error that could cost a developer hours of frustrating debugging.

When we ask AI to refactor this code, not only will we receive a more readable version using newer patterns (async/await), but also – and most importantly – AI will automatically detect and fix the typo in the URL:

async function fetchPosts() {
    try {
      const response = await fetch(
        "https://jsonplaceholder.typicode.com/posts"
      );
      const data = await response.json();
      console.log(data);
    } catch (error) {
      console.error(error);
    }
}

How AI in Frontend Automation Speeds Up UI Creation

One of the most obvious applications of AI in frontend development is generating UI components. Tools like GitHub Copilot, ChatGPT, or Claude can generate component code based on a short description or an image provided to them.

With these tools, we can create complex user interfaces in just a few seconds. Generating a complete, functional UI component often takes less than a minute. Furthermore, the generated code is typically error-free, includes appropriate animations, and is fully responsive, adapting to different screen sizes. It is important to describe exactly what we expect.

Here’s a view generated by Claude after entering the request: “Based on the loaded data, display posts. The page should be responsive. The main colors are: #CCFF89, #151515, and #E4E4E4.”

Generated posts view

AI in Code Analysis and Understanding

AI can analyze existing code and help understand it, which is particularly useful in large, complex projects or code written by someone else.

Example: Generating a summary of a function's behavior

Let’s assume we have a function for processing user data, the workings of which we don’t understand at first glance. AI can analyze the code and generate a readable explanation:

function processUserData(users) {
  return users
    .filter(user => user.isActive) // Checks the `isActive` value for each user and keeps only the objects where `isActive` is true
    .map(user => ({ 
      id: user.id, // Retrieves the `id` value from each user object
      name: `${user.firstName} ${user.lastName}`, // Creates a new string by combining `firstName` and `lastName`
      email: user.email.toLowerCase(), // Converts the email address to lowercase
    }));
}

In this case, AI not only summarizes the code's functionality but also breaks down individual operations into easier-to-understand segments.

AI in Frontend Automation – Translations and Error Detection

Every frontend developer knows that programming isn’t just about creatively building interfaces—it also involves many repetitive, tedious tasks. One of these is implementing translations for multilingual applications (i18n). Adding translations for each key in JSON files and then verifying them can be time-consuming and error-prone.

However, AI can significantly speed up this process. Using ChatGPT, DeepSeek, or Claude allows for automatic generation of translations for the user interface, as well as detecting linguistic and stylistic errors.

Example:

We have a translation file in JSON format:

{
  "welcome_message": "Welcome to our application!",
  "logout_button": "Log out",
  "error_message": "Something went wrong. Please try again later."
}

AI can automatically generate its Polish version:

{
  "welcome_message": "Witaj w naszej aplikacji!",
  "logout_button": "Wyloguj się",
  "error_message": "Coś poszło nie tak. Spróbuj ponownie później."
}

Moreover, AI can detect spelling errors or inconsistencies in translations. For example, if one part of the application uses "Log out" and another says "Exit," AI can suggest unifying the terminology.

This type of automation not only saves time but also minimizes the risk of human errors. And this is just one example – AI also assists in generating documentation, writing tests, and optimizing performance, which we will discuss in upcoming articles.

Summary

Artificial intelligence is transforming the way frontend developers work daily. From generating components and refactoring code to detecting errors, automating testing, and documentation—AI significantly accelerates and streamlines the development process. Without these tools, we would lose a lot of valuable time, which we certainly want to avoid.

In the next parts of this series, we will cover topics such as:

Stay tuned to keep up with the latest insights!