Scaling Solution Ethereum Polygon has announced that it will dedicate 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 sensitive information hidden below. It is useful for complex decentralized financial applications, such as decentralized ridesharing applications or decentralized health insurance, where nodes need to verify the personal data of blockchain participants without risking privacy leaks.
Mir specializes in developing two subcategories of zero-knowledge evidence: 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 setup for validation, Halo algorithms can accomplish the task in a decentralized fashion. Speed is a fundamental design consideration in zero-knowledge evidence. Complex information to be transmitted through blockchains, such as redacted photo IDs, can take on substantial size, affecting the applicability of transactions.
“Polygon plans to focus on ZK crypto as the end game for blockchain scaling,” said Sandeep Nailwal, co-founder of Polygon.
“We have made the strategic decision to explore and encourage all significant scaling approaches and technologies at this point. We believe this is the way to establish Polygon as the main force and contributor in the ZK realm and onboard the first billion Ethereum users.
The Mir acquisition is part of a larger $ 1 billion commitment to the development of zero-knowledge technology by Polygon.