Layer-two protocol Polygon can be merging ZK-rollup mission Hermez Community into its ecosystem for $250 million price of MATIC tokens.
In a Friday announcement, Polygon stated Hermez would become part of the community’s suite of options underneath the title Polygon Hermez. The 26 individuals within the Hermez staff in addition to its tech and options — together with work on an Ethereum Digital Machine-compatible resolution — will be part of the platform.
As a part of the merger, holders of Hermez’s native HEZ will have the ability to trade the tokens at a fee of three.5:1 to Polygon’s MATIC tokens. Polygon stated HEZ tokens would ultimately be phased out at an unspecified date.
“We consider that is in a method a historic second since this can be (to one of the best of our information) the primary full-blown merger of two blockchain networks,” stated Polygon. “[Mergers and acquisitions] within the conventional tech world are an on a regular basis factor. In blockchains, nonetheless, they’re a brand new and really attention-grabbing idea.”
The merger with Hermez is a part of Polygon’s growth into zero-knowledge, or ZK, proofs. The mission has dedicated $1 billion to ZK-based options and plans to proceed to type partnerships to develop its suite of options.
As a ZK-rollup, Hermez uses zero-knowledge proofs to confirm the correctness of a big batch of transactions. An outdoor ecosystem executes these transactions and generates proofs for them, that are then posted instantly on the Ethereum blockchain. The system is geared toward saving block area — an ordinary switch of Ether (ETH) would possibly take simply 100 bytes on the chain, whereas a transaction with Hermez would solely be 10 bytes.
Although the businesses will stay separate entities, Maintain Community and NuCypher introduced in March they are going to integrate their data encryption and protection protocols into a brand new community referred to as Keanu. Although the initiatives stated they are going to type a decentralized autonomous group, the event can be pushed by two unbiased groups slightly than a full merger.