Polygon Labs has acquired blockchain research and engineering firm Toposware, bringing its total investment in zero-knowledge (ZK) technology to over $1 billion. This acquisition is part of Polygon’s ongoing effort to enhance Ethereum-compatible blockchains with advanced ZK proofs.
Strengthening ZK Capabilities with Toposware
Toposware has been working closely with Polygon Labs to develop the Type 1 Prover technology, which allows Ethereum-compatible blockchains to adopt ZK proofs without significant modifications. With this acquisition, 11 engineers from Toposware will join Polygon’s existing ZK development teams, further strengthening their technological capabilities.
Polygon’s cumulative investment in ZK technology now exceeds $1 billion. In 2021, Polygon acquired two other companies, Mir and Hermez, for a combined $650 million, enhancing its focus on Ethereum scalability and privacy.
The Importance of ZK Technology
ZK technology enables one party to prove the validity of a statement to another party without revealing any additional information. In the blockchain context, this means transactions can be validated without disclosing transaction details, thereby enhancing privacy.
“We are always exploring potential acquisitions to strengthen our ZK research and development efforts.” They added that while no other deals are currently being considered, ZK technology remains a key focus area for Polygon.
Growing Demand for ZK-Proofs
The demand for ZK-proofs is expected to surge, with Web3 services alone predicted to require around 90 billion ZK-proofs by 2030, equivalent to 83,000 transactions per second. Several other crypto firms, including StarkWare and Matter Labs, are also working on advancing ZK technology.
Trademark Dispute in the ZK Space
A recent trademark dispute erupted when Matter Labs, the company behind the zkSync layer-2 solution, attempted to trademark the term “ZK.” Following backlash from researchers and the crypto community, Matter Labs dropped the request. Polygon criticized the move, stating, “They are essentially trying to steal people’s hard work. We believe that ZK is a common good […] We will explore legal action if necessary.”
Summary Review: Polygon Labs‘ acquisition of Toposware marks another significant step in their investment in zero-knowledge technology, pushing their total ZK investment to over $1 billion. This move not only enhances Polygon’s technological capabilities but also underscores the growing importance and demand for ZK-proofs in the blockchain industry.
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