For just under half a billion US dollars, Predicate Labs will become part of the Polygon ecosystem. Is the ETH scaling solution now gaining acceptance?
There has Polygon reached deep in his pocket. The company has put a total of 400 million US dollars in the in-house token MATIC on the table and with Predicate Labs the inventor of Me incorporated. Mir is a subcontractor that specializes in so-called zero-knowledge proofs. Zero-knowledge proofs are special cryptographic signatures that can provide evidence of certain data without revealing too much about it. For example, you can prove that you hold a certain amount of cryptocurrency on your wallet without disclosing the exact amount.
With Me, Polygon is taking a big step in the race for supremacy when it comes to Ethereum scaling. After all, Polygon is one of many Layer Two solutions that want to thin out the rush on the basic blockchain. On Polygon, Mir is then called Polygon Zero.
“Polygon wants to offer a wide range of safe, fast, affordable and energy efficient Ethereum scaling solutions for Web3 developers. With the acquisition of Mir, Polygon has access to the world’s fastest and most efficient ZK scaling technology, ”says Polygon co-founder Sandeep Nailwal Bloomberg.
Layer two on Ethereum: importance increases
Layer two solutions had become more and more important recently. After all, the Ethereum blockchain is notoriously clogged, which has a negative impact on transaction throughput as well as transaction fees. The reason is the growing importance of the ETH network for DeFi and NFT applications – the Etherum base layer is currently no longer able to cope with this demand.
Sidechains such as Polygon, Arbitum or Loopring relieve the base layer by disseminating transactions off-chain and simply storing a summary of what is happening on the blockchain. With the purchase of Predicate Labs, Polygon is now taking a big step towards winning this competition.