Did you know Polygon processed around 12.3 billion transactions in 2025, doubling Ethereum’s by 6.2 billion? This underlines the network’s massive global adoption.
Ethereum’s scaling journey is backed by two major powerhouses in 2025. Arbitrum is optimized for high-performance DeFi with Optimistic Rollups, whereas Polygon is known for its mass-market versatility owing to its iconic blend of PoS sidechains and zkEVM rollups.
Both networks aim to reduce Ethereum’s cost, make it faster, and more accessible, but their core differences lie in technologies, cost structures, and unique ecosystems.
What Is a Layer 2 Blockchain?
A Layer 2 blockchain is a scaling solution built on Ethereum that helps reduce high costs and congestion on the main network. Layer 2 handles transactions off-chain and then batches or settles the results back onto Ethereum. It makes transactions cheaper and faster while benefiting from Ethereum’s security. Instead of loading Ethereum directly, the work is done on Layer 2 networks to improve user experience without sacrificing decentralization.
Common Layer 2 presents the given solutions to achieve cheaper, faster, and more scalable blockchain interactions:
- Optimistic Rollups: It assumes transactions are valid and only runs computations if a fraud challenge is submitted.
- ZK-Rollups: It bundles transactions and uses a cryptographic validity proof for secure verification.
- Sidechains: Independent blockchains that run parallel to Ethereum and connect through a bridge, often using their own consensus mechanisms.
What is Arbitrum?
Briefly define and discuss Arbitrum, leading to the following subheadings:
How Does it Work?
Arbitrum’s core innovation is its use of Optimistic Rollups, which bundle thousands of transactions into a single batch and submit this compressed data into Ethereum, assuming all transactions are valid. A challenge period allows verifiers to dispute fraudulent transactions using fraud proofs. This reduces the computational load on Etherem and minimizes the fees by over 80%.
The Arbitrum ecosystem has expanded into a multi-chain system consisting of the following products:
- Arbitrum One: Flagship chain for General DeFi and dApps.
- Arbitrum Nova: Chain optimized for social/gaming apps with ultra-low transaction fees.
- Arbitrum Orbit: Framework that enables projects to launch custom L2 chains.
Benefits for Users & Developers
Arbitrum offers the following benefits to users and developers:
- Cost Efficiency: Lowers gas fees through aggregation of transactions.
- EVM Compatibility: Developers can port existing Ethereum dApps with minimal code changes.
- Powerful Tool: Orbit SDK provides developers with tools to build custom chains.
- High Performance: Faster transaction finality.
Real-World Use Cases
Arbitrum is the top pick for some of the biggest DeFi projects looking for low cost and high throughput. Some real-world use cases of Arbitrum are mentioned below:
- GMX and Radiant chose Arbitrum due to its low trading costs and high throughput.
- Dopex and TreasureDAO use Arbitrum’s low fees and strong developer support to deliver better user experiences.
What Is Polygon?
Polygon is a leading Ethereum Layer 2 scaling network that makes interactions cheaper, faster, and more accessible. It is referred to as “internet of blockchains” due to its flexible framework, where developers can choose between different scaling solutions.
How Does it Work?
Polygon uses a dual-strategy architecture to cater to different operations. Its Proof-of-Stake (PoS) sidechain uses its validator network to quickly and cheaply confirm transactions while periodically anchoring to Ethereum. At the same time, it uses zkEVM rollups to verify transactions with cryptographic guarantees to improve security while maintaining speed and low cost.
Benefits for Users & Developers
Users get ultra-low fees and faster finality, whereas developers can benefit from the massive adoption base, strong wallet compatibility, and tools like Polygon ID for decentralized identity. The Ethereum-level security (zkEVM) provides the highest security guarantee through cryptographic proofs, eliminating the need to rewrite code.
Real-World Use Cases
Polygon has become a top choice for Web3 projects and mainstream brands in 2025. Aave, a DeFi lending protocol, runs on Polygon for cheap user transactions, and Lens Protocol uses it for decentralized social apps. Moreover, global brands like Starbucks chose Polygon for its Odyssey loyalty program, and Reddit launched its collectible avatar marketplace on it.
Arbitrum vs Polygon: A Head-to-Head Comparison
While Arbitrum and Polygon are two of the most-used Ethereum Layer 2s, their differences lie in their architecture, cost, throughput, and who they serve. The table below compares both.
| Category | Arbitrum | Polygon |
| Avg. Gas Fee | Low cost, approximately $0.0088 | Ultra low cost, approx. $0.0075 – $0.0014 |
| Transaction speed | Real-time TPS approx around 27.5 tx/s and max TPS around 1,358 TPS | Real-time approx 48 tx/s, max approx 429 tx/s |
| Finality | Approx 13 minute | Approx 5 seconds or less than 1 second |
| Security Model | Fraud proofs + Ethereum | Independent validators |
| Ecosystem Focus | DeFi and high-value finance apps; Orbit and Nova for custom and social/gaming L2s | Broad adoption across NFTs, brands, gaming, and enterprise |
| Developer experience | Orbit SDK, EVM tooling, growing TVL/ dApp base | Polygon CDK, Polygon ID, massive developer growth, and ecosystem size |
Gas Fees
Transactions in Arbitrum are inexpensive compared to Ethereum L1, but gas fees can fluctuate with sequencer load and batch submission costs. For high-frequency trading or complex DeFi operations, the cost remains competitive but less predictable.
Polygon, on the other hand, has ultra-low and predictable fees due to zkEVM, which aims to keep the cost low with strong proof-based finality.
Transaction Speed
In terms of TPS, both networks can outperform Ethereum. While Arbitrum can achieve high TPS, its real-time throughput is low, and finality via the fraud window takes around 13 minutes. And compared to this, Polygon sidechain and zkEVM offer near-instant confirmation and higher sustained capacity.
Tech Stack & Architecture
Arbitrum heavily relies on rollups with fraud proofs on Ethereum for security. Still, Polygon combines independent consensus with cryptographic zk rollups to offer stronger security, but it also requires more computational resources.
Ecosystem Adoption
Arbitrum’s DeFi TVL leads with approximately $2.4B, but Polygon has processed more transactions and has broader brand adoption and developer engagement.
Which is Easier to Build on?
Arbitrum offers Orbit SDK for building custom L3 chains within its ecosystem, and Polygon provides Chain Development Kit (CDK) for launching customized zk-powered L2 chains on Ethereum.
Both are developer-friendly due to complete EVM compatibility, excellent documentation, and strong grant programs. Choosing one depends on the project’s goals.
Security and Decentralization
Arbitrum’s security is linked to Ethereum through fraud proofs, giving L1 guarantees, but also depends on sequencer arrangements and the effectiveness of dispute mechanisms.
Polygon PoS sidechain trades some L1 security for speed, whereas zkEVM offers strong security through cryptographic validity proofs.
Community and Ecosystem Support
Arbitrum has a highly technical and DeFi-native community with active DAO governance. Conversely, Polygon has a diverse and vast community based on developers, gamers, enterprises, and third-party tooling and wallet support.
What About Optimism? Is it a Good Layer 2 Choice?
Yes, Optimism is a major Optimistic Rollup L2 contender and Arbitrum’s direct opponent. It shares similar core technology but has a unique Superchain vision, which connects a network of interconnected L2s (Base and Mode) that share communication layers, security, and a governance system. The main innovation is its retroactive public goods funding (RetroPGF), which incentivizes projects with positive ecosystem value. Optimism is a suitable choice for projects that value the public goods ethos and governance.
Summing it Up
Arbitrum is a good choice for developers focusing on performance-driven DeFi and financial infrastructure. Due to its Optimistic Rollups and strong Ethereum integration, it offers high security and compatibility. This makes it perfect for protocols that require scalable execution with minimal friction.
However, Polygon, in contrast, leads when adoption and versatility are most required. Its hybrid architecture, combining ultra-low fees with cryptographic security, makes it ideal for brand engagement, NFTs, and gaming applications.
If you’re ready to explore these two in depth, use Dypto Crypto as your educational hub that includes detailed guides, DeFi tools, and real-world blockchain insights tailored for users from beginners to expert level.
FAQs (Frequently Asked Questions)
Q: Can I deploy the same app on both Polygon and Arbitrum?
Yes, you can deploy the same smart contract-based application with minimal changes on both as they are EVM-friendly.
Q: Which is more beginner-friendly?
Polygon is generally easier for newcomers due to lower fees, instant finality, and strong documentation. However, both networks offer fantastic documentation and tools for developers, making the entry barrier low.
Q: Does Arbitrum support zk-rollups?
No, Arbitrum is built on Optimistic Rollups, not zk-rollups. It relies on fraud proofs for security, while zk-rollups use zero-knowledge proofs.
Q: Is Polygon cheaper than Arbitrum in 2025?
Yes, Polygon provides marginally reduced and more predictable fees.
Q: Can I use the same wallet for Arbitrum and Polygon?
Yes, you can use both. Arbitrum and Polygon networks are EVM-friendly, so wallets like Trust, MetaMask, and Coinbase support them. You only need to add each network’s RPC setting to switch between them.
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