Through their Twitter deal with, protocol and cross-chain bridge Polygon introduced a brand new space of curiosity, ZK-based scaling options. To be able to contribute and enhance this method to mixture transactions right into a blockchain, the undertaking additionally introduced a merger with Hermez Community and a $1 billion funding.
Based mostly on zero-knowledge proof, the layer 2 scaling resolution referred to as ZK-Rollups permits funds to be deposit into a sensible contract on high of the Ethereum community. Thus, transactions could 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 undertaking claims that their PoS primarily based chain is “the most effective fast resolution” and aid for the rise in transactions charges and community congestion. They added:
By establishing itself as one of many trade’s hottest and highest valued initiatives, Polygon proved that there’s a lot of worth to be created and captured by engaged on these arduous challenges in symbiosis with Ethereum, as a substitute of competing with it.
The $1 billion funding will come straight from Polygon’s treasury and can use to employed and bought “world-class” ZK-based initiatives and groups. As well as, the funds shall be used for analysis, constructing, and adopting ZK-based options.
Scaling options have 3 main challenges, the crew 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 ultimately meet these challenges.
Subsequently, the undertaking revealed that they are going to concentrate on two “main long-term” targets. The primary one is “Transport” or placing the options and innovation in “the fingers 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 circumstances, and we already began seeing person outflow to competing initiatives that determined to make problematic compromises by way of decentralization, safety and many others. We realized that one thing needs to be executed at present, and thus we constructed and provided our Polygon PoS chain (…).
Polygon To Merge With Ethereum Based mostly Hermez Community
As of at present August 13th, Polygon and Hermez Community, a decentralized zk-rollup primarily based scaling funds working on Ethereum, will start a merger course of. Thus, the answer shall be rebranded as Polygon Hermez and shall be a part of this protocol ecosystem and options, reminiscent of Polygon PoS, SDK, and others.
The merger course of shall be supported by funds obtained from the protocol’s treasury, 250 million MATIC tokens or round $250 million have been dedicated to fulfilling this goal.
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.