Polygon acquires Hermez Network for $250M, will merge native tokens

The very known Polygon network will be merging the ZK-Rollup project named Hermez network in ecosystem for $250 million worth of Matic tokens

Polygon acquires Hermez Network for $250M, will merge native tokens

Hermez will become a part of the Polygon network’s suite of the solution with the name of Polygon Hermez, said Polygon network on Friday. Now the whole team of Hermez including the people working on Ethereum virtual machine-compatible solutions.

As soon as the merging gets started, users of the Hermez and their native token HEZ will be able to exchange the tokens in the ratio of 3.5:1 with Matic tokens and they also said HEZ tokens would eventually phase out at any time.

“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,” said Polygon. “[Mergers and acquisitions] in the traditional tech world are an everyday thing. In blockchains, however, they are a new and very interesting concept.”

The merger with Hermez is part of Polygon’s expansion into zero-knowledge, or ZK, proofs. The project has committed $1 billion to ZK-based solutions and plans to continue to form partnerships to grow its suite of solutions.

After the ZK-rollup, Hernez uses their proofs to verify the correctness of a large batch of the transactions. As per the details a standard transaction of ETH might carry just 100 bytes on the chain, while the Hermez will only occupy 10 bytes on the chain. 

Read: Mining difficulty of Bitcoin took a dive second time

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