Polygon acquires Hermez network
The Polygon network has revealed it will be acquiring and merging with ZK-Rollups’ start-up Hermez network in a $250m move aimed at conglomerating Ethereum scaling technology.
The native token amalgamation between MATIC and HEZ marks the ever merger of one blockchain into another.
The alliance is driven by Hermez innovative cryptography based on zero knowledge (ZK) blockchain technology to push Ethereum-based project scaling.
Zero Knowledge encryption is a simple and highly-secure mechanism with one party able to validate another’s block as true without any other party seeing the blockchain data. This, in effect, creates a protocol in which digital authentication can take place without anyone seeing anyone else’s sensitive data.
Sandeep Nailwal, co-founder at Polygon, labelled the merger as an exciting future for the platform.
“We thank the whole Polygon and Ethereum community for all the support so far and we invite you to stay with us moving forward,” he said.
“This journey is about to get even more exciting.”
Process initiated
The process of merging Hermez into the Polygon ecosystem has been initiated. This will see the project operate under a new name – ‘Polygon Hermez’.
It will join part of a growing portfolio comprising of the Polygon suite alongside already-offered solutions such as Polygon PoS, Polygon SDK, Polygon Avail etc.
HEZ holders will be able to swap their tokens for Polygon’s native MATIC via a swapping smart contract that will be published soon. The swap ratio is 3.5 MATIC : 1 HEZ – and is calculated based on the respective prices at 11AM CET August 4 2021, as previously announced by the Hermez team.
MATIC will remain the only token native to the Polygon ecosystem and it will take on the ZK role of HEZ in Polygon Hermez. The HEZ token will cease to exist after a specific date yet to be revealed.
This is the latest in a series of recent moves by Polygon following its rapid expansion, including the first Layer 2 bridge!
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