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I just started to understand Polygon network.

As 1 MATIC = 10^18 Wei and 1 ETH = 10^18 Wei

and Wei is the smallest denomination on both networks, but then

Why is 1 MATIC not equal to 1 ETH (We have 1 ETH ~= 3000 MATIC today).

As both of them have the same Wei as the lowest value and Polygon is based on Ethereum then, logically 1 MATIC == 1 ETH.

Does it not work this way in Crypto currencies or how are the calculations done then, even though both have the same amount of Wei?

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You are mixing up two concepts: units and prices.

Both networks use the same base unit wei for measuring their native asset amounts. Another unit, which builds on top of wei is named differently: Ether and Matic. These two networks are quite independent (although they have lots of stuff in common, and even some one-way coordination) and their assets can't be directly compared to each other.

However, when you're saying 1 ETH ~= 3000 MATIC you are talking about prices. Both networks have different prices for their assets, and one does not depend on the other (although the prices probably somewhat correlate). So if one Ether is today 3000 more expensive than Matic, the ratio could be something completely different tomorrow.

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  • correct i was mixing up two things. The confusion came from the fact that if I consider fiat currency of 1$ = 100 cents, and 1 cent is the lowest denomination of a dollar. As Polygon was based on Ethereum and they both have the lowest denomination as Wei, I was directly equating the two. But actually the pricing is different thing altogether.
    – yk28
    Commented May 24, 2022 at 14:23

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