According to Polygon, “We believe this is in a way a historical moment since this will be (to the best of our knowledge) the first full-blown merger of two blockchain networks” .
Protocol at the second layer Polygon will be acquiring Hermez Network, a ZK-rollup project, in exchange for $250 million in MATIC tokens and integrating it into its ecosystem.
Polygon announced on Friday that Hermez would become a part of the network’s suite of solutions under the name Polygon Hermez, which will be marketed as such.
The Hermez team, which consists of 26 individuals, as well as its technology and solutions — which include work on an Ethereum Virtual Machine-compatible solution — will be integrated into the platform.
Holders of Hermez’s native HEZ tokens will be able to trade their tokens for Polygon’s MATIC tokens at a rate of 3.5:1 as part of the merger. HEZ tokens, according to Polygon, will be phased out at an indeterminate point in the future.
We feel this is a historic occasion since it will be (to the best of our knowledge) the first full-blown merging of two blockchain networks, according to the company Polygon.
“[Mergers and acquisitions] are commonplace in the traditional technology world,” says the author. Blockchains, on the other hand, are a very new and extremely exciting concept.”
The acquisition of Hermez is part of Polygon’s development into zero-knowledge proofs, often known as ZK proofs. The project has committed $1 billion to ZK-based solutions and intends to continue to create partnerships in order to expand its array of solutions even further.
Hermez does a ZK-rollup, in which he employs zero-knowledge proofs to ensure that a big batch of transactions is correctly executed. These transactions are carried out by an external ecosystem, which also provides proofs for them, which are then directly uploaded to the Ethereum blockchain.
The technology is designed to save block space — for example, a conventional Ether (ETH) transfer may only take up 100 bytes on the blockchain, whereas a transaction with Hermez would only take up 10 bytes on the blockchain.
Keep Network and NuCypher announced in March that they will incorporate their data encryption and protection methods into a new network dubbed Keanu, despite the fact that the firms will continue to operate as independent corporations.
Despite the fact that the projects have said that they will join to establish a decentralised autonomous organisation, the development will be led by two independent teams rather than a complete merger.
