Polygon Acquires Hermez Network, How They Will Improve Ethereum Scaling Solutions

Via their Twitter handle, protocol and cross-chain bridge Polygon announced a new area of interest, ZK-based scaling solutions. In order to contribute and improve this approach to aggregate transactions into a blockchain, the project also announced a merger with Hermez Network and a $1 billion investment.

Based on zero-knowledge proof, the layer 2 scaling solution called ZK-Rollups allows funds to be deposit into a smart contract on top of the Ethereum network. Thus, transactions can be securely processed off-chain and scalability can increase.

As Polygon claimed in its official announcement, there is a high demand for Ethereum to improve its scalability. The project claims that their PoS based chain is “the best immediate solution” and relief for the increase in transactions fees and network congestion. They added:

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By establishing itself as one of the industry’s most popular and highest valued projects, Polygon proved that there is a lot of value to be created and captured by working on these hard challenges in symbiosis with Ethereum, instead of competing with it.

The $1 billion investment will come directly from Polygon’s treasury and will use to hired and acquired “world-class” ZK-based projects and teams. In addition, the funds will be used for research, building, and adopting ZK-based solutions.

Scaling solutions have 3 major challenges, the team behind Polygon argued security, decentralization, and privacy. These won’t be resolved immediately, but the Ethereum ecosystem is at a “stage of intense innovation and experimentation” with the potential to lay start creating solutions that will eventually meet those challenges.

Therefore, Polygon revealed that they will focus on two “major long-term” goals. The first one is “Shipping” or putting the solutions and innovation in “the hands of developers and users”. The second is to make Polygon the “innovation hub” for Ethereum. On scalability, they added:

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Ethereum base layer fees reached levels that made Ethereum practically unusable for most users and use cases, and we already started seeing user outflow to competing projects that decided to make problematic compromises in terms of decentralization, security etc. We realized that something has to be done today, and thus we built and offered our Polygon PoS chain (…).

Polygon To Merge With Ethereum Based Hermez Network

As of today August 13th, Polygon and Hermez Network, a decentralized zk-rollup based scaling payments running on Ethereum, will begin a merger process. Thus, the solution will be rebranded as Polygon Hermez and will be part of this protocol ecosystem and solutions, such as Polygon PoS, Polygon SDK, and others.

The merger process will be supported by funds obtained from the protocol’s treasury, 250 million MATIC tokens or around $250 million have been committed to fulfilling this purpose.

We at Polygon are very aware of the importance of EVM-compatibility, and the fact that Hermez already has a roadmap and is actively working on introducing it was another big signal for us that joining forces makes sense.

At the time of writing, ETH trades at $3,230 with a 6% profit in the daily chart.

Polygon Hermez Ethereum


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Hermez Network Preps $825K Airdrop for Gitcoin Donors

Key Takeaways

  • Hermez Network will airdrop 10 HEZ tokens to 12,700 accounts that participated in Gitcoin Grants round 9.
  • The airdrop goes live on May 4. Users who donated at least $1 will be eligible.
  • Hermez Network is a ZK-Rollup solution built to scale Ethereum. It recently launched on mainnet.

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Users who made at least a $1 donation in the latest round of Gitcoin Grants are now eligible for an exclusive airdrop.

Hermez Network Rewards Donors

Hermez Network will reward 12,700 Gitcoin Grants donors with 10 HEZ tokens on May 4. 

The Layer-2 solution announced details of the airdrop today. It will send 10 HEZ tokens to every Ethereum address that donated $1 or more using a MetaMask wallet during Gitcoin Grants Round 9.Hermez Network currently only supports MetaMask.

10 HEZ is worth about $65 today, which puts the airdrop’s total value at $825,500. 

Jordi Baylina, technical lead at Hermez Network, spoke of the important role Gitcoin Grants play in supporting the Ethereum ecosystem. He said: 

“Community is at the heart of the decentralized revolution and those who seek to further the development of the Ethereum ecosystem should be celebrated. No one can create the future of finance alone, but Gitcoin Grants allow us the opportunity to support projects that create long term and sustainable growth for all to enjoy.”

Hermez Network is part of a group of Layer-2 solutions focused on helping Ethereum achieve scalability. It leverages ZK-Rollups and works by bundling transactions together to reduce traffic on the base chain. In doing so, it provides a way to execute transactions at a higher speed and lower cost. With ETH trading at record highs, much of the conversation in the Ethereum community has focused on the urgency for Layer-2 solutions. 

Kyle Weiss, COO at Gitcoin, said that he was “grateful” for Hermez Network and other Layer-2 solutions. In a statement, he added: 

“During Gitcoin Grants Round 9 we saw more than 85% of the ~165K contributions happen on a Layer 2 network. Growth and support from solutions like Hermez are both vital and necessary for the expansion of Gitcoin Grants, and the Ethereum network.”

Hermez Network runs its own “Proof-of-Donation” mechanism that ensures 40% of each coordinator’s bid gets sent to Gitcoin Grants. It supports a range of assets, including ETH, COMP, DAI, HEZ, SUSHI, UNI, USDC, and USDT. It launched on mainnet last month. 

Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies. They also had exposure to COMP, SUHI, and UNI in a cryptocurrency index. 

This news was brought to you by Phemex, our preferred Derivatives Partner.


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Tether USDT Launches on Layer 2 Solution Hermez Network

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Ethereum Layer 2 Solution Hermez Network Launches on Mainnet

Key Takeaways

  • Hermez Network, a Layer 2 scaling solution for Ethereum, has launched on mainnet.
  • The network uses zk-rollup technology to enable high-speed, low-cost transactions.
  • Hermez launched its own wallet interface, accessible through MetaMask.

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Ethereum’s Layer 2 welcomes a new arrival: Hermez Network. 

Hermez Network Launches 

Hermez Network has gone live on Ethereum mainnet. 

The Layer 2 project shared news of the update in a blog post earlier today. In it, they wrote: 

“We aim to help with Ethereum’s congestion peaks, and lower the entry barrier to decentralized finance. This is just the beginning, but the network will be able to process vast amounts of transactions, moving billions of dollars worth of digital assets.”

Hermez Network is a form of rollup that works by grouping transactions together to create SNARKs—succinct non-interactive arguments of knowledge. These SNARKs then get settled on the Ethereum base layer as one transaction. Rollups are useful for processing transactions at a higher speed and lower cost than on the base chain, and they take two forms: ZK-Rollups and Optimistic Rollups.

Hermez Network is an example of a ZK-Rollup, though Optimistic Rollups such as Optimism have also recently turned heads as the costs of using Ethereum hits record highs. Yesterday, Uniswap detailed its plans to go live on Optimism “shortly after” its V3 update goes live on May 5. 

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Hermez Network warned that there’s a risk of “possible bugs” in the code in the announcement post. The solution was tested and audited on Ethereum’s Rinkeby testnet before launching on mainnet. They wrote that users “should treat it as an early version and should expect that there can be bugs.” 

Hermez Network has launched a bug bounty program to foolproof the code, paying up to 100 ETH for critical issues. There’s also a wallet interface for interacting with the solution. It’s accessible through the widely used Web3 wallet MetaMask. 

The blog post notes that users can now create accounts, deposit funds, send transactions and withdraw funds through the network. It will initially support ETH, USDT, DAI, wBTC, and HEZ. 

Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies. 

This news was brought to you by Phemex, our preferred Derivatives Partner.


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