Tutorials:Layer II - Revision history

Mediawiki at 02:00, 9 January 2026

2026-01-09T02:00:56Z

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	=Layer II Networks. Bridges and Wrapped Tokens=		=Layer II Networks. Bridges and Wrapped Tokens=


	Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.		Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.
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	=Polygon Bridge and Wrapped Tokens=		=Polygon Bridge and Wrapped Tokens=


	The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge. Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.		The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge. Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.
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	=Bridge Tokens from one Network to Another=		=Bridge Tokens from one Network to Another=


	We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.		We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.
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	=Arbitrage=		=Arbitrage=


	Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap from one network to the other.		Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap from one network to the other.


	Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".		Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".

Mediawiki at 01:58, 9 January 2026

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	[[File:Bridge 1.png\|400px]]		[[File:Bridge 1.png\|400px]]

	We will choose Winter in Ethereum as the source, and Winter in Polygon as the destination.		We will choose Winter in Ethereum as the source, and Winter in Polygon as the destination.

	[[File:Bridge 2.png\|400px]]		[[File:Bridge 2.png\|400px]]

	This swap will in fact use the Polygon Bridge in order to "send" the tokens from one network to another.		This swap will in fact use the Polygon Bridge in order to "send" the tokens from one network to another.

	[[File:Bridge 3.png\|400px]]		[[File:Bridge 3.png\|400px]]

	~~Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap~~
	~~from one network to the other.~~

	=Arbitrage=		=Arbitrage=

			Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap from one network to the other.


	Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".		Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".

Mediawiki at 01:56, 9 January 2026

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	Example: Seasonal Tokens are produced on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.		'''Example:''' Seasonal Tokens are produced on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.

	To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.		To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.

	This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.		''This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.''

	=Bridge Tokens from one Network to Another=		=Bridge Tokens from one Network to Another=

Mediawiki at 01:55, 9 January 2026

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	=Polygon Bridge and Wrapped Tokens=		=Polygon Bridge and Wrapped Tokens=

	The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.		The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge. Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.

	If you send tokens from one network address to an address in another network you will loose them.		If you send tokens from one network address to an address in another network you will loose them.
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	The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology.		The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology.

	~~Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.~~

	~~In the case of '''~~Seasonal Tokens~~''', they~~ are produced ~~through proof-of-work mining~~ on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.
			Example: Seasonal Tokens are produced on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.

	To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.		To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.

Mediawiki at 01:41, 9 January 2026

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			In the tutorials we will be using the Polygon network only because of the very low fees.

	=Layer II Networks. Bridges and Wrapped Tokens=		=Layer II Networks. Bridges and Wrapped Tokens=

Mediawiki: /* Introduction to the Polygon Bridge and Wrapped Tokens */

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Introduction to the Polygon Bridge and Wrapped Tokens

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	The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.		The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.

	=~~Introduction to the~~ Polygon Bridge and Wrapped Tokens=		=Polygon Bridge and Wrapped Tokens=

	The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.		The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.
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	This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.		This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.


	=Bridge Tokens from one Network to Another=		=Bridge Tokens from one Network to Another=

Mediawiki at 01:37, 9 January 2026

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	The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.		The '''Polygon Network''' is a popular Layer II solution for Ethereum. It offers faster transactions and significantly lower fees, making it ideal for swapping and trading tokens. By using Polygon, users can enjoy the benefits of Ethereum's ecosystem—like smart contracts and dApps—without the high gas fees typically associated with the Ethereum mainnet.

	==Introduction to the Polygon Bridge and Wrapped Tokens==		=Introduction to the Polygon Bridge and Wrapped Tokens=

	The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.		The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.
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	= Bridge Tokens from one Network to Another=		=Bridge Tokens from one Network to Another=

	We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.		We can "bridge" tokens from one network to another using Metamask's built in function SWAP. Or visiting directly the bridge page.

Mediawiki at 01:35, 9 January 2026

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	The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.		The '''Polygon Bridge''' is a tool that enables the transfer of tokens between the Ethereum and Polygon networks. Since these two blockchains operate independently, tokens cannot be directly moved between them. Instead, the tokens are '''wrapped''' when transferred across the bridge.

	~~Wrapped~~ tokens ~~are representations of assets~~ from one ~~blockchain on~~ another~~, maintained at a '''1:1 ratio'''. In the case of '''Seasonal Tokens''', they are produced through proof-of-work mining on the Ethereum network but are traded on the Polygon~~ network due to its lower transaction fees. To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.		If you send tokens from one network address to an address in another network you will loose them.

	~~This mechanism allows Seasonal Tokens~~ to ~~be mined on Ethereum and traded efficiently on Polygon~~.		The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology.

			Wrapped tokens are representations of assets from one blockchain on another, maintained at a '''1:1 ratio'''.

	~~== Using~~ the Polygon ~~Network ==~~		In the case of '''Seasonal Tokens''', they are produced through proof-of-work mining on the Ethereum network but are traded on the Polygon network due to its lower transaction fees.

			To facilitate this, users send their tokens through the Polygon Bridge. The bridge locks the original tokens on Ethereum and issues wrapped equivalents on Polygon, ensuring that the total supply remains consistent across both networks.

	~~Metamask comes with many popular networks already connected. In case you need a new network you can choose: Add custom network.~~		This mechanism allows Seasonal Tokens to be mined on Ethereum and traded efficiently on Polygon.


	~~If you have tokens in several networks it will~~ be ~~marked by the network logo besides the token logo.~~


	~~In the image below you can see for example Winter tokens in the Polygon network, and in the~~ Ethereum ~~network. Notice you can see also POL, the symbol of the Polygon cryptocurrency, used to keep the Polygon blockchain decentralized~~ and ~~self sustainable. And "Matic Network Token" this is~~ Polygon ~~Cryptocurrency in the Ethereum network.~~


	~~Confusing right?, but the little network logos beside the main logo help you to remind yourself they are not in the same blockchain.~~

	~~[[File:Networks.png\|600px]]~~


	~~If you send tokens from one network address to an address in another network you will loose them.~~

	~~The only way to "move" tokens from one blockchain to another is using the '''Bridge''' technology~~.

Mediawiki at 01:21, 9 January 2026

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	Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap		Since the token's prices are determined by the liquidity pools in the Ethereum and Polygon networks. Their prices are not the same, and also a small fee will be charged for the swap
	from one network to the other.		from one network to the other.

			=Arbitrage=

	Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".		Sometimes the price difference in two networks can present an economic incentive to send tokens from one network to another. A situation called "Arbitrage".

Mediawiki at 01:19, 9 January 2026

2026-01-09T01:19:56Z

← Older revision		Revision as of 03:19, 9 January 2026
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	=Layer II Bridges and Wrapped Tokens=		=Layer II Networks. Bridges and Wrapped Tokens=

	Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.		Layer II networks are solutions built on top of Layer I blockchains, like Ethereum, to improve scalability and reduce transaction costs. They help handle a large number of transactions off-chain while still relying on the main blockchain for security and finality.