2021-12-11 17:10 |
Polygon, a layer two scaling solution based on Ethereum, has announced that it will be dedicating a maximum of 250 million MATIC tokens. These tokens will be used to launch a zero-knowledge cryptography startup.
The MATIC tokens to be deployed for this initiative are valued at around $627.5 million at the current market prices.
Polygon investing in zero-knowledge technologyPolygon has stated that it will dedicate up to 250 million tokens in zero-knowledge algorithms. These algorithms will enable external validators to verify encrypted transactions on the network.
The algorithms will be used to verify the encrypted transactions or documents. The verification will be done to not reveal any sensitive details contained within the documents or transactions.
The algorithms will manage complex decentralized finance applications, including decentralized ride-share applications or decentralized health insurance. As such, nodes will be used to verify the participants’ personal data on the blockchain without risking leaking private data.
The algorithm will be used on creating two subcategories of zero-knowledge consensus. These two consensuses will be PLONK and Halo. The two are a representation of the advancements in the market.
The two proofs will be superior to the previous cryptography techniques such as SNARK and STARK, as transactions will be generated in seconds.
The PLONK proof will still require a validation setup that has high trust levels. On the other hand, Halo algorithms will function in a decentralized manner. The algorithms will come with high speeds, with a core design consideration.
Complex information will be passed over different blockchains for processing. Some of the details that will be processed include redacted photo IDs that consume a large size and affect how transactions can be applied.
The co-founder of Polygon, Sandeep Nailwal, noted that Polygon would focus on ZK cryptography due to blockchain scaling.
“We have made a strategic decision to explore and encourage all meaningful scaling approaches and technologies at this stage. We believe this is the way to establish Polygon as the leading force and contributor in the ZK field and onboard the first billion users to Ethereum,” Nailwal stated.
Polygon makes a strategic investmentPolygon also noted that the acquisition of Mir was a strategic move for the firm. Polygon acquired Mir as part of its $1 billion commitment to bring zero-knowledge technology into the blockchain.
The recent acquisition of Mir is part of Polygon’s strategy to boost adoption. With high gas fees still posing a challenge for the Ethereum network, an upgrade on Polygon could boost adoption from market players. It could be one of the most utilized layer two networks.
In the announcement, Polygon noted that “the acquisition should help Polygon become a bigger player in so-called Layer 2 technologies, also called rollups, which effectively take transactions from Ethereum, compress them and post them back to the original chain for a fraction of time and cost. Rivals such as Arbitrum, Loopspring, Optimism and StarkWare are leading the shift to Layer 2.”
The post Polygon (MATIC) to invest 250 million tokens in boosting technology prowess appeared first on Invezz.
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