Polygon, a layer two scaling solution on Ethereum, has announced the acquisition of Mir. The acquisition deal has been valued at $400 million. The amount was paid through 250 million MATIC tokens at an average price of $1.60.
Mir is a zero-knowledge (ZK) technology developer. News of this acquisition was made public during the Polygon “zk day” virtual celebration.
Polygon seeks zero-knowledge capabilities
The official blog post regarding the acquisition states that Mir will be joining MATIC to take advantage of its technology and assist MATIC in developing “Polygon Zero.” This project seeks to bring scalability to the network.
The project is already attracting much attention across the market. It has onboarded various experts in the field in both the development and implementation phases.
The objective of Polygon Zero is to boost the adoption of the Ethereum network by bringing in scaling improvements to the network. It seeks to do this while upholding the security of the blockchain. The coin will be joining other similar initiatives such as Polygon Hermez, Polygon SDK, Polygon Miden, Polygon Nightfall, Polygon PoS and Polygon Avail that are also working towards a similar objective.
Mir has been committed to developing zero-knowledge algorithms over the past two years. The announcement notes that going forward, the platform work towards sub-second recursive proofs.”
One of the popular proofs is Plonky2 that can generate recursive proofs at an incredible speed of 170 milliseconds. According to the co-founder of the coin, Mihailo Bjelic, this gives it practicality for use on the Ethereum network since it has “45kb proofs in size-optimized mode.”
Zero-knowledge is one of the advanced algorithms in the crypto sector, and the token has been looking towards this technology for a while. Earlier, the network committed $1 billion towards the cryptography technology.
MATIC fails to hold gains
After news of this acquisition reached the crypto market, the MATIC token made notable gains, with an around 50 price gain. However, it failed to hold these gains because of the recession happening across the broader market.
Currently, MATIC has dipped by around 4% during the past 24 hours, according to CoinGecko. The token was trading at $2.07 at the time of writing.
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