- "Networks" are different blockchains on which Dharma can execute a trade on your behalf
- Some networks are cheaper to use than others, but there are tradeoffs
- If you are a beginner in cryptocurrency and want to simply buy and sell tokens at the best possible prices, we recommend using Polygon Network.
- If you are more advanced in cryptocurrency and are looking to make large purchases of harder-to-find tokens, Ethereum network may be better suited for you.
The reason Dharma is able to provide you with so many more tokens than a normal cryptocurrency exchange is that we use decentralized exchanges like Uniswap to execute trades on your behalf.
Unlike centralized exchanges, decentralized exchanges run on a blockchain network and anyone can upload a token to them — sort of like how anyone can upload a video to YouTube.
The downside of this, however, is that the most popular blockchain network — Ethereum — can be very expensive to use due to congestion.
To solve this problem, new blockchain networks are being released that use newer technology to enable faster, cheaper transactions — like Polygon, Optimism, and Arbitrum.
These networks are "bridged" to Ethereum — meaning that most tokens can be transferred between the networks for a fee — and they're 10-100x cheaper than Ethereum to use.
You can sort of think of these alternative networks like broadband in comparison to dial-up — and, today, you can buy and sell tokens directly on Polygon using Dharma.
There is a catch though — these networks are very new and have only started to gain traction in the past 6 months. That means that:
- There are less tokens available on these than Ethereum
- They are not quite as secure and decentralized as Ethereum
- Most dApps you might want to use still live on Ethereum — so you'll need to "bridge" your tokens back over to Ethereum if you want to use them to, say, stake through WalletConnect.
It's sort of like using the Internet in the early 2000s – most people were still on dial-up, but a growing number of people were starting to use broadband to get fast Internet.
Eventually, most people will do all of their transacting on networks like Polygon, Optimism, and Arbitrum.
And with Dharma, trying out these networks couldn't be easier — just tap the "Ethereum" button in the top left corner of the app in order to switch to your Polygon wallet.