Polygon, an Ethereum layer 2 solution, has made an acquisition worth hundreds of millions of dollars in an effort to lead the Ethereum-scaling solution race.
In a new blog post, Polygon (MATIC) announced the acquisition of a firm focused on developing zero-knowledge (ZK) technology, Mir.
Zero-knowledge rollups (ZK-rollups) are Layer 2 scalability solutions that allow blockchains to validate transactions faster while also ensuring that gas fees remain minimal. Zk-rollups manage to perform better than traditional Layer 1 blockchains like Ethereum because they combine on and off-chain processes.
As demand on the Ethereum network started to rise with the non-fungible token (NFT) and yield farming crazes that began towards the end of 2020, the need for faster processing speeds and cheaper transactions became a priority. The solution came in the form of Layer 2 blockchains and additional developments like zero-knowledge rollups.
Polygon’s Reason for Acquiring Mir
Through the acquisition of Mir and its recursive proof system Plonky2, Polygon (MATIC) hopes to improve the current ZK rollups compatible with Ethereum (ETH) and create ones that can perfectly work with Ethereum Virtual Machine (EVM).
The report reads in part as follows:
“ZK scaling represents the future of Ethereum, but scalable, EVM-compatible ZK Rollups don’t exist yet. The missing piece is efficient recursive proofs, as recursion allows us to parallelize proof generation for much better performance. Unfortunately, the existing recursive proof systems supported by Ethereum are inefficient and slow.
This ends today. We are announcing Plonky2, a recursive proof system that is incredibly fast, and Ethereum-friendly. We believe this engineering breakthrough will be a huge value-add to the community and will open new frontiers of Ethereum scaling.”
According to Polygon, Mir has been working on recursive proofs for more than 2 years, adding that Plonky2 has showcased its ability to generate recursive proofs in 170 milliseconds on a laptop computer. This makes it ideal for building a ZK rollup compatible with EVM.
As stated in the report, the amount used for the acquisition is $100 million and 190 million MATIC tokens. So, considering the current price of MATIC in the market, the deal could be worth around $500 million.