Polygon Labs acquires ZK builder Toposware for unified web3

Polygon Labs, which contributes to the Ethereum ecosystem, increased its zero-knowledge investment to $1 billion by purchasing the startup Toposware.

Polygon Labs, the organization behind the MATIC ecosystem, has added $30 million blockchain builder Toposware to its zero-knowledge (ZK) development arsenal.

Zero-knowledge is an encryption technology that allows blockchains to confirm transactions without revealing details about senders or recipients. The firm has become a frequent employer of proof-of-stakes for scaling Ethereum-based layer-2 networks.

This acquisition brings together 11 of Toposware’s engineers and development stack for what the MATIC developer describes as a “unified web3” vision. This is the third bet on ZK Tech after acquiring Hermez and Mir in 2021.

We are delighted to welcome you today @toposwarezk Polygon Labs team.

Toposware helped develop the Type 1 zkEVM and is a powerhouse of zk innovation and technology, making significant advances in zk-based interoperability. pic.twitter.com/hQ2dZ1mhsC

— Polygon | Bulk (@0xPolygon) June 4, 2024

Broader implications for Polygon’s ecosystem

The companies also have a long-standing partnership through joint work on the Type 1 zkEVM prover. Type 1 zkEVM provers enable migration of any Ethereum Virtual Machine-compatible network to ZK-proof-based chains, increasing connectivity and interoperability with Ethereum (ETH)’s mainnet.

The acquisition of Toposware also means that the Polygon proof-of-stake (PoS) network will join AggLayer, a decentralized protocol that combines a cryptocurrency bridge and a ZK mechanism to increase cross-chain interoperability.

Polygon Labs CEO Marc Boiron said Toposware’s “deep encryption and zero-knowledge expertise” represent a perfect fit to advance the ecosystem and encourage greater open source contributions across the Ethereum community.

The focus on ZK technology also builds on the industry’s growing preference for EVM chains as a scaling mechanism. Apart from ZK proof, developers also have the option to leverage optimistic aggregations to create L2 networks.

Technological stacks aim to achieve the gaming goal; It facilitates the use of entire EVM chains for both developers and users without compromising security and decentralized management. However, experts such as Vitalik Buterin have turned to ZK technology ahead of optimistic recoveries, arguing that the former is a cheaper and faster proposition.