Polygon Acquires Zero-Knowledge Cryptography Firm Toposware

As an analyst, I have observed Polygon’s strategic investment in zero-knowledge cryptography over the past few years. I believe that this technology holds the key to scaling Ethereum‘s blockchain ecosystem effectively in the long term. Polygon Labs has a history of bringing in external talent to strengthen its internal zero-knowledge initiatives, and the acquisition of Toposware is no exception. This deal adds a third significant zero-knowledge team to Polygon’s roster, expanding their capabilities in this area. Previously, Polygon acquired Hermez and Mir, whose founders, Jordi Baylina and Brendan Farmer, now head Polygon Labs’ in-house ZK teams.

In 2021, according to CoinDesk’s report, Polygon Labs spent approximately $650 million on acquisitions – $400 million for Mir and $250 million for Hermez. Unnamed sources familiar with the situation revealed to CoinDesk that Toposware was valued around $30-$50 million. Polygon Labs announced in their press release that these deals pushed their investments into zero-knowledge (ZK) teams and technology past the $1 billion mark.

As a crypto investor following Polygon Labs’ updates, I can tell you that according to their recent announcement, the Toposware team will be joining forces with Polygon’s existing ZK teams. Together, they aim to advance Polygon’s technology by developing key components such as AggLayer, Chain Development Kit, and its layer-2 zkEVM.

“Marc Boiron, CEO of Polygon Labs, communicated to CoinDesk via Telegram: ‘Toposware’s merger with Polygon Labs reaffirms our dedication to cultivating a premier ZK research and development team. ZK technology is integral to our broader strategy, fueling projects like the AggLayer for creating the leading aggregated blockchain network, the CDK empowering developers to launch new L2 chains on Ethereum, the scaling and enhanced security of DeFi projects through Polygon zkEVM, and the eventual ZK-enabled enhancement of Polygon PoS.'”