We talked about hearing more about “proof-of-knowledge” algorithms back in September. Polygon has allocated a significant amount of money to this area.
Various blockchain-based new technologies are developing rapidly, and the heavyweights of the industry are making serious investments in these areas. Polygon, on the other hand, wants to build its muscle in this area by acquiring a company specializing in zero-knowledge. The total size of the investment made is 250 million MATIC, or 627 million dollars.
Polygon (MATIC)’s Invested Technology
Ethereum scaling solution Polygon has announced that it has allocated 250 million MATIC tokens in a deal with zero-knowledge cryptography startup Mir. Zero-knowledge algorithms enable external validators to verify encrypted transactions or documents without revealing sensitive information hidden underneath. It is useful for complex decentralized finance applications, such as decentralized car-sharing applications or decentralized health insurance, where nodes must 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 advances over previous SNARK and STARK encryption techniques, allowing proofs to be created in seconds. PLONK still requires a reliable setup for validation, while Halo algorithms can perform the task in a decentralized manner.
Speed is at the core of the need for this technology. In other words, networks want to take advantage of zero-knowledge algorithms to work faster.
Sandeep Nailwal, co-founder of Polygon, said:
“Polygon plans to go one step further in blockchain scaling and focus on ZK cryptography. At this stage, we made the strategic decision to explore and promote all meaningful scaling approaches and technologies. We believe this is the way to establish Polygon as the leading power and contributor in the ZK space and place the first billion users on Ethereum.”
The acquisition of Mir is part of a larger $1 billion commitment by Polygon to develop zero information technology. In September, we published a detailed content about the zero-knowledge proof algorithm and mentioned that we will hear more about it in the near future. We don’t seem so wrong.
Making a good investment for the future, MATIC continues its decline, led by Bitcoin. The price, which made the second peak of this year on December 7, is currently retreating. The 50- and 100-day averages on the chart still show that the uptrend may continue. However, the selling pressure in the market has also affected MATIC investors and the RSI continues to be pressured towards the oversold zone.