Polygon (CCC:MATIC-USD) is a scaling play that’s setting the pace for the rest of the market. It has shown great success throughout 2021 in offering an alternative to excessively high Ethereum (CCC:ETH-USD) gas fees, and it’s not taking its foot off of the pedal. After an announcement a handful of weeks ago, the network is releasing a brand new product for its users. As a result, the Polygon (MATIC) crypto is seeing some nice gains today.
Polygon is a layer-2 scaling solution; that is, it is a second layer atop the Ethereum protocol, which users can tap to transact data more quickly. The result is a less congested Ethereum layer, and a way to move data around on the blockchain without suffering obscenely high fees from Ethereum.
The network has made several new offerings throughout 2021, but the week’s news stems from a Polygon-hosted event that happened in December. Indeed, Polygon hosted the zk Summit, a blockchain event that focused on zk proofing. Zk, or zero knowledge, is a proofing mechanism that allows users to quickly transact data using a third-party validator. With zk, the third party can validate the terms of a transaction, but they don’t have access to the entire set of data. This makes transactions more secure, while also keeping them private on behalf of the transactors.
The zk Summit was such a big moment for Polygon because it saw a major announcement by the project. Indeed, Polygon announced at the event that it acquired a zk-rollup startup called Mir Protocol. The $400 million acquisition is what sets the stage for recent news.
Polygon (MATIC) Crypto Gains After zk-Scaling Product Reaches Users
After several weeks of waiting to see what Polygon would do with its new zk-rollup tech, investors are finally getting an answer. And luckily for them, the news is translating to Polygon (MATIC) crypto gains.
On Monday, Polygon shared it’s big announcement: It is releasing its own zk-scaling technology, called “Plonky2.” Plonky2 is the first big release by Polygon’s Polygon Zero subsidiary, which focuses entirely on zk tech; the team was created in the wake of the Mir acquisition announcement. The Plonk2 tech is compatible with the Ethereum network, and it promises to be 100 times faster than other zk alternatives.
The Polygon Zero project is the sixth subsidiary of its kind, with each focusing on a different method of scaling. Zero knowledge technology is especially coming into vogue right now, so the news is of particular interest to investors. As such, MATIC is seeing plenty of green today; the coin is rising 16% this afternoon, with transaction volume surging above $2 billion.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.