Polygon Merged With Hermez Network In $250M Deal: Report

Polygon merged with Hermez network in a $250 million deal based on the MATIC price as we are reading more in our latest cryptocurrency news.

Polygon is a layer-2 platform on the Ethereum blockchain and it is merging with the roll-up platform Hermez Network in a 250 million MATIC deal and Hermez will be absorbed into the Polygon ecosystem under the name Polygon Hermez where it will become a part of the Polygon line of products like Avail and SDK. The entire project including its technology, employees, and native HEZ token will be able to exchange at a rate of 3.5 MATIC: 1 HEZ that will be integrated into the platform.

The merger with Hermez is the first complete merger of the blockchain network into another. Earlier this year both KEep and NuCypher announced a merger of their protocols in a decentralized autonomous organization in the Keanu project but will keep the brand and companies separate. Yearn Finance also announced merges and partnerships but it is not clear what will happen under the surface of these deals. Polygon’s absorption of Hermez’s team is something completely different.

Hermez is a zero-knowledge rollup which means that it uses mathematical proofs to verify and settle transactions so while ETH struggles with transaction bottlenecks, rollups emerged as the preferred scaling strategy and Hermez is the user favorite especially since it uses the decentralized rollup. The Polygon-Hermez merger is a part of the new strategic focus on ZK technology and it made a $1 billion commitment to develop ZK-based systems forming new partnerships, acquiring ZK teams and projects like Hermez. The co-founder Mihailo Bjelic said:

“We consider ZK cryptography the single most important strategic resource for blockchain scaling and infrastructure development, and we have a clear goal of becoming the leading force and contributor in this field for years to come.”

As recently reported, Binance now officially supports the MATIC mainnet token. According to a press release, Binance users will be able to make deposits and withdrawals with the MATIC mainnet token and they will also be able to utilize a few DeFi dapps like SushiSwap, Curve, Aave, and Balancer without having to use the Polygon Ethereum Matic bridge and all that with a low cost too.

Source: https://www.dcforecasts.com/altcoin-news/polygon-merged-with-hermez-network-in-250m-deal-report/