Polygon Technologies has announced its purchase of Mir for $400 million in MATIC tokens.
Mir, a scaling solutions firm focused on solving the zero-knowledge conundrum, has changed hands, according to Polygon’s announcement on Thursday, December 9. The L2 scaling protocol Polygon revealed during its zero knowledge virtual conference that it has purchased Mir, for a price of $400 million.
250 million MATICs were utilized to complete the acquisition deal. At the time of the transaction, MATIC was trading at $1.60, but it had since burgeoned to an all time high of $2.34. As at press time, MATIC trades at $2.10 with a market capitalization approximately $15 billion according to Coinmarketcap.
Polygon, formerly known as Ethereum’s most fierce rival, ironically, is now a firm focused on developing Ethereum blockchain leveraged networks and the linkage of such networks. It intends to create an interlinked system of Ethereum based blockchain networks , facilitating the establishment of an ideal Blockchain hub.
According to its proprietary objectives, Mir solutions, though currently experimental, provides digital zero knowledge receipts that will enable virtually all Ethereum based transactions done on any Polygon impacted blockchain, to be confirmed by the system without ‘any’ proof.
This will supposedly make Mir a forerunner in the competition for zero knowledge solutions hegemony. This in turn makes the system one of the speediest and highly efficient L2 network solution options.
What To Know About Zero Knowledge Proofs
As can be easily decoded from the phrase ‘zero knowledge proof’ , this basically means having to prove ‘something’ without having any prior knowledge about said ‘thing’.
In decentralized digital systems, all transactions, financial or otherwise are clearly recorded on its related Blockchain, and made available to the public. Although this can be considered a ‘mild’ proof of transaction, certain transactions that are ‘sensitive’ or enormous may require direct proof. This in itself has already jettisoned the idea fueling decentralized systems.
As more entities and governmental bodies continue to adapt and integrate decentralized systems, more attention is being directed to the concept inspired by zero knowledge proofs. This concept can be considered to be integral to the development of the next generation digital systems.
Polygon’s Rapid Expansion And Its Significance
Polygon’s acquisition of Mir, marks its second zero knowledge solutions firm that it has acquired, in just six months. Five months ago, in August it acquired Hermez network, another zero knowledge solutions firm at a price of $250 million, the transaction was completed in MATIC tokens. The L2 network-based protocol has successively acquired two zero knowledge firms, whilst spending an astounding sum total of $650 million in MATIC tokens. This series of rapid expansion has impacted it’s native cryptocurrency token, MATIC, positively, having experienced a comprehensive growth in the crypto industry. It currently ranks 14 on Coinmarketcap’s rankings, making it the 14th most valuable cryptocurrency in the world, that is, on the basis market capitalization.
Polygon has been in the spotlight recently, due to its series of radical investments and expansion regime, it is being intentional as it competes aggressively with other rivals in the industry.
This can be seen as a validation of its goal to become a hub for virtually all Ethereum leveraged Blockchain networks, facilitating seamless and speedy transfer of relevant ‘data’ between different nodes in the hub.