Polygon will invest up to 250 million MATIC in zero-knowledge technology
Ethereum scaling solution Polygon has announced that it will commit a maximum of 250 million MATIC tokens ($627.5 million) to a deal with zero-knowledge crypto startup Mir.
Zero-knowledge algorithms allow external validators to verify transactions or encrypted documents without revealing the sensitive information hidden underneath. It is useful for complex decentralized financial applications, such as decentralized ride-sharing apps or decentralized health insurance, where nodes need to verify the personal data of blockchain participants without risking privacy leaks.
Mir specializes in the development of two subcategories of zero-knowledge proofs: PLONK and Halo. Both represent advancements over previous SNARK and STARK cryptography techniques, allowing evidence to be generated in seconds.
While PLONK still requires a trusted configuration for validation, Halo algorithms can accomplish the task in a decentralized way. Speed is a key design consideration in zero-knowledge proofs. Complex information to be transmitted via blockchains, such as redacted photo IDs, can grow to considerable size, affecting the enforceability of transactions.
“Polygon plans to focus on ZK crypto as the endgame for blockchain scaling,” said Polygon co-founder Sandeep Nailwal.
“We have made the 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 primary force and contributor in the ZK domain and onboarding the first billion users to Ethereum.
The acquisition of Mir is part of a larger, billion-dollar commitment to develop zero-knowledge technology by Polygon.