Polygon Hermez MATIC

By way of their Twitter deal with, protocol and cross-chain bridge Polygon announced a brand new space of curiosity, ZK-based scaling options. With the intention to contribute and enhance this method to combination transactions right into a blockchain, the challenge additionally introduced a merger with Hermez Community and a $1 billion funding.

Based mostly on zero-knowledge proof, the layer 2 scaling answer referred to as ZK-Rollups permits funds to be deposit into a sensible contract on high of the Ethereum community. Thus, transactions may be securely processed off-chain and scalability can improve.

As its official announcement, there’s a excessive demand for Ethereum to enhance its scalability. The challenge claims that their PoS based mostly chain is “one of the best instant answer” and reduction for the rise in transactions charges and community congestion. They added:

By establishing itself as one of many trade’s hottest and highest valued tasks, Polygon proved that there’s a lot of worth to be created and captured by engaged on these laborious challenges in symbiosis with Ethereum, as an alternative of competing with it.

The $1 billion funding will come instantly from Polygon’s treasury and can use to employed and bought “world-class” ZK-based tasks and groups. As well as, the funds will likely be used for analysis, constructing, and adopting ZK-based options.

Scaling options have Three main challenges, the staff argued safety, decentralization, and privateness. These gained’t be resolved instantly, however the Ethereum ecosystem is at a “stage of intense innovation and experimentation” with the potential to put begin creating options that can finally meet these challenges.

Subsequently, the challenge revealed that they may give attention to two “main long-term” objectives. The primary one is “Delivery” or placing the options and innovation in “the palms of builders and customers”. The second is to make Polygon the “innovation hub” for Ethereum. On scalability, they added:

Ethereum base layer charges reached ranges that made Ethereum virtually unusable for many customers and use instances, and we already began seeing person outflow to competing tasks that determined to make problematic compromises by way of decentralization, safety and so forth. We realized that one thing needs to be completed at this time, and thus we constructed and supplied our Polygon PoS chain (…).

Polygon To Merge With Ethereum Based mostly Hermez Community

As of at this time August 13th, Polygon and Hermez Community, a decentralized zk-rollup based mostly scaling funds working on Ethereum, will start a merger course of. Thus, the answer will likely be rebranded as Polygon Hermez and will likely be a part of this protocol ecosystem and options, resembling Polygon PoS, SDK, and others.

The merger course of will likely be supported by funds obtained from the protocol’s treasury, 250 million MATIC tokens or round $250 million have been dedicated to fulfilling this objective.

We at Polygon are very conscious of the significance of EVM-compatibility, and the truth that Hermez already has a roadmap and is actively engaged on introducing it was one other large sign for us that becoming a member of forces is sensible.

On the time of writing, ETH trades at $3,230 with a 6% revenue within the every day chart.