The cryptocurrency and NFT part of MobiFi App is running on the Polygon Network, which is a Layer 2 of the Ethereum Blockchain Network. The reason we chose Polygon network is because it is ETH compatible, fast and cheap on gas fee. MobiFi and Polygon are official partners since 2021. We’ve been testing and building on Polygon since Dec 2021. The original $MoFi token lives on the Ethereum Mainnet, and it was mapped to Polygon mainnet as well.
A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin , for maintaining a secure and decentralized record of transactions. The innovation with a blockchain is that it guarantees the fidelity and security of a record of data and generates trust without the need for a trusted third party. (Source: Investopedia)
- Blockchain is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptography.
- As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order.
- Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions.
- In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control.
- Decentralized blockchains are immutable, which means that the data entered is irreversible. For Bitcoin, this means that transactions are permanently recorded and viewable to anyone.
Layer 2 is a collective term for solutions designed to help scale your application by handling transactions off the Ethereum Mainnet (layer 1) while taking advantage of the robust decentralized security model of Mainnet.
- Increased transactions per second greatly improves user experience, and reduces network congestion on Mainnet Ethereum.
- Transactions are rolled up into a single transaction to Mainnet Ethereum, reducing gas fees for users making Ethereum more inclusive and accessible for people everywhere.
- Any updates to scalability should not be at the expense of decentralization or security – layer 2 builds on top of Ethereum.
- There are application specific layer 2 networks that bring their own set of efficiencies when working with assets at scale.
Polygon Network is one of the best players in the Ethereum Layer camp, therefore MobiFi team decided to partner up with them to make our mobility solution more sustainable, faster and cheaper.
Mainnet vs Testnet
Mainnet is the term used to describe when a blockchain protocol is fully developed and deployed, meaning that cryptocurrency transactions are being broadcasted, verified, and recorded on a distributed ledger technology (blockchain).
In contrast to mainnet networks, the term testnet describes when a blockchain protocol or network is not yet up and running on its full capacity. A testnet is used by programmers and developers to test and troubleshoot all the aspects and features of a blockchain network before they are sure the system is secure and ready for the mainnet launch.
In other words, a testnet only exists as a working prototype for a blockchain project, while a mainnet is a completely developed blockchain platform for users to send and receive cryptocurrency transactions (or any other kind of digital data that is recorded on a distributed ledger).
Usually, before the mainnet of a blockchain project is launched, the team will build their product and test it on testnet to ensure they fix bugs,validate economic models etc. It’s a like a public lab environment to make mistakes and fix them before letting end user to spend real money on it. (Source: Binance Academy)