“We imagine that is in a way a historic moment since this will be (to the very best of our information) the first full-blown merger of two blockchain networks,” said Polygon.
Layer-two protocol Polygon will be merging ZK-rollup project Hermez Network into its ecosystem for $250 million worth of MATIC tokens.
In a Friday announcement, Polygon stated Hermez would turn into part of the network’s suite of solutions under the name Polygon Hermez. The 26 individuals within the Hermez staff in addition to its tech and options — together with work on an Ethereum Virtual Machine-compatible solution — will be a part of the platform.
As a part of the merger, holders of Hermez’s native HEZ will be able to trade the tokens at a price of 3.5:1 to Polygon’s MATIC tokens. Polygon said HEZ tokens would eventually be phased out at an unspecified date.
“We believe that is in a manner a historic moment since this can be (to the very best of our information) the first full-blown merger of two blockchain networks,” stated Polygon. “ Mergers and acquisitions within the traditional tech world are an everyday factor. In blockchains, however, they’re a new and very interesting idea.”
The merger with Hermez is a part of Polygon’s enlargement into zero-knowledge, or ZK, proofs. The challenge has dedicated $1 billion to ZK-based solutions and plans to proceed to type partnerships to develop its suite of options.
As a ZK-rollup, Hermez uses zero-knowledge proofs to verify the correctness of a giant batch of transactions. An outside ecosystem executes these transactions and generates proofs for them, which are then posted instantly on the Ethereum blockchain. The system is geared toward saving block space a standard transfer of Ether (ETH) may take just 100 bytes on the chain, while a transaction with Hermez would solely be 10 bytes.
Although the companies will stay separate entities, Maintain Network and NuCypher announced in March they will integrate their data encryption and safety protocols into a new network known as Keanu. Though the projects stated they’ll type a decentralized autonomous organization, the event can be pushed by two unbiased groups rather than a full merger.